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Alphamin Resources is producing the glue of technology

When last we looked at Alphamin Resources Corp. (TSXV: AFM) in early May the stock was up 177% in 5 months. It was a cash flow machine with exploration upside of a critical material – Tin. Since then not a lot has changed, the company is still generating massive amounts of cash flow and is using much of that free cash to expand its resource base with the goal of extending mine life out by decades. Interestingly though, tin prices are up another 12% since then while Alphamin’s stock price is actually down a little bit, closing yesterday at $0.69/share versus it’s May 11th close of $0.72.

Before we have a look at what’s currently going on at Alphamin let’s talk a little more about tin first. Why are tin prices continuing to rock ‘n’ roll even when we’ve seen many other commodities (like copper and lumber) retreat from their recent highs? As noted, tin is a critical material, making the U.S. Department of the Interior’s 2018 list of 35 mineral commodities considered critical to the economic and national security of the United States. The reason it’s so important is because tin is the glue of technology (a great quote I borrowed from Alphamin’s CEO Maritz Smith in an interview with InvestorIntel’s Tracy Weslosky earlier this week). Half of the world’s tin demand is from solder, which is used in all circuit boards and will be a critical component of future technological developments. It’s also a relatively scarce element with an abundance in the earth’s crust of about 2 parts per million (ppm), compared with 94 ppm for zinc, 63 ppm for copper, and 12 ppm for lead. And lastly, any near term supply additions from the likes of Indonesia, China and Myanmar require an estimated price of roughly US$30,000/tonne to make economic sense to bring incremental production online.

Perhaps that’s why tin closed at US$33,510/tonne yesterday. Things look pretty good from both a supply and demand perspective. So who better to talk about in this environment than the company that owns the world’s highest grade tin resource, about four times higher than most other operating tin mines in the world, responsible for approximately 4% of global tin production. It should come as no surprise that the latest guidance from Alphamin is for EBITDA of $34 million for the quarter ending June 2021 which has led to a debt reduction of 50% from the start of the financial year to $29.9 million. Granted the EBITDA number is slightly lower than Q1 but that’s due to the previous quarter benefitting from significant catch-up sales following logistical bottlenecks during Q4.

Naysayers may also focus on slightly lower tin grades and plant recovery rates versus Q1 but the variable nature of tin mineralisation in the orebody can cause material fluctuations in delivered grade. Ultimately, the overall resource estimate at Mpama North is a tin grade of 4.5% versus the latest quarter achieving a grade of only 3.2%. My simplistic view is that over time this number should revert to the mean but I’m not sure if that’s how geology and resource estimates work. The positive is that the plant processed 12% more ore quarter over quarter and the fine tin recovery plant is fully commissioned and producing effective June 26th, which has the potential to increase contained tin production by 5%-10%. Also, the average Q2 tin price was US$28,326/tonne, well below current prices. My takeaway is far more positives than negatives but the market will ultimately decide, regardless of my opinion.

Those are all the tangible numbers you can sink your teeth into but the exciting part (to me at least) is the anticipation of a massive exploration program. In early June, Alphamin announced results from the first 29 of their 70-hole drill programme. Drill results at Mpama South (which account for 46 holes of the overall plan) showed continued presence and orientation of high-grade samples pointing to the potential for another high-grade deposit 750m south of current operations. They say a picture is worth a thousand words, so rather than ramble on about various drill highlights I’ll let you look at a picture.

Source: Alphamin Resources June 8, 2021 Press Release

Results are still pending on the last 17 holes drilled at Mpama South. Drilling at the Mpama North orebody commenced on July 2nd with an initial 15,000 metre (22 holes) drilling campaign over the next 4 months. Drilling is planned to test the strike and dip extension of the current producing orebody with the aim to extend the life-of-mine. In addition, the Company is planning to drill on the highly prospective Bisie ridge (13km strike length), which falls within the Company’s mining licence. This is expected to commence in August, with access roads having been established and initial drill targets being developed.

There’s nothing better than a story that has lots of cash flow, potentially debt free in the foreseeable future and lots of exploration upside in a commodity with a pretty good supply/demand outlook. The one caveat is that it’s a single mine asset in a potentially challenging geographic and geopolitical location (Democratic Republic of Congo). To me that’s what makes investing so interesting.

Disclosure: The author is long Alphamin Resources Corp. (TSXV: AFM).




Alphamin’s Maritz Smith on the increasing demand for the critical material tin in technology advancements across the board

In a recent InvestorIntel interview, Tracy Weslosky speaks with Maritz Smith, CEO of Alphamin Resources Corp. (TSXV: AFM) about the growing market demand for the critical material tin in technology advancements, Alphamin’s Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Maritz went on to say that tin is the metal expected to be most positively impacted by new technology advancements. Primarily used in soldering circuit boards, tin is a vital component in the manufacturing of electric vehicles, robotics, renewable energies, and advanced computing. With one of the world’s highest grade producing tin mines in the world, Maritz said that “Alphamin is well placed to take advantage of the significant growth in tin demand aligned to the electronics industry.”

To watch the full interview, click here

About Alphamin Resources Corp.

Alphamin Resources is a low cost tin concentrate producer from its high grade deposit at Mpama North. This is on its mining license and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed on the Toronto Stock Exchange (TSXV: AFM) and the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within our licensed footprint. Their management team has successfully developed and brought the Bisie tin mine to production and is focused on taking the business to the next level as they pursue their objective of realising the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




One of the world’s highest-grade tin resources, Alphamin is up 177% in last 5-months

Tin typically isn’t at the top of anyone’s list of critical materials or thought of as an important component of the green revolution. You’ll be excused for not being aware that it was on the U.S. Department of the Interior’s 2018 list of 35 mineral commodities considered critical to the economic and national security of the United States. Seriously? Tin? Who knew?

Tin is used as a protective coating or as an alloy with other metals such as lead or zinc, as well as, coatings for steel containers, in solders for joining pipes or electrical/electronic circuits, in glass-making, and in a wide range of chemical applications. It’s also a relatively scarce element with an abundance in the earth’s crust of about 2 parts per million (ppm), compared with 94 ppm for zinc, 63 ppm for copper, and 12 ppm for lead. But perhaps the most interesting statistic is that Tin prices have reached a 10 year high at US$29,932/tonne, up an impressive 97% year over year.

Armed with this information are you now intrigued by Tin investment opportunities? Then look no further than Alphamin Resources Corp. (TSX: AFM). Alphamin is a low cost tin concentrate producer from its high grade deposit at Mpama North in the North Kivu Province of the Democratic Republic of Congo (DRC). At a tin grade of roughly 4.5%, Mpama North is one of the world’s highest-grade tin resources – about four times higher than most other operating tin mines in the world. Mpama North has a current output of roughly 10,000 tonnes of contained tin per annum (and growing), amounting to approximately 3%-4% of the world’s mined tin supply. It has exploration licenses covering a total of 1,270km2 and is currently one of the top producing Tin mines in the world.

Alphamin just announced record Q1 EBITDA of US$36.5 million at an average tin price of US$23,083/tonne (versus much higher current pricing). Other highlights include the fine tin recovery plant being on schedule for commissioning during June 2021, which the Company believes can increase plant throughput by a further 5%-10%. Combine this with a planned increase to plant throughput of roughly 6% in H2 2021 could see annual Tin production increasing to as much as 12,000 tonnes per annum. At quarter end the company had a cash balance of US$11 million and debt of US$57 million with an expectation to be net debt free by the end of 2021 based on current Tin prices.

With all these impressive numbers there is still plenty of exploration upside to be had. Alphamin’s exploration initiative aims to: extend the life-of-mine at its currently producing Mpama North operation; to declare a Maiden Mineral Resource for Mpama South (located 750 metres south of Mpama North); and to discover at least one additional orebody on the highly prospective Bisie Ridge (13km strike length). At the Mpama South deposit 8,200 metres of drilling has already been completed with an additional 5,800 metres planned to be drilled between May and end July 2021. Assay results from the first two batches of samples totaling 13 of the 25 drill holes drilled in phase 1, are expected shortly with another 7 drill hole results from batch 3 expected towards the end of May 2021. Commencement of drilling at Mpama North is targeted for May 2021 with a 12,000 to 18,000 metre drilling campaign planned to test the strike and dip extension of the current producing orebody. Lastly, two drill targets 6-8 kms south of Mpama North have been identified along the Bisie Ridge to be drilled in Q3 2021.

The heavy lifting has been done to get this world-class mine into production and running on all cylinders. However, there’s always a but… It’s a single mine asset in a less than desirable geographic location. Logistically the location in central Africa means long supply lines to the ports that have caused issues in the past. For example, in October, 2019 a major bridge collapsed along the main provincial road used for exporting all concentrate and importing major consumables which took 8 weeks to repair, materially impacting that quarter’s results. Q4/20 results were affected by extreme seasonal rains impacting export road conditions. Then there’s the perception that the DRC is unstable and politically challenging, and although this is not the case currently, it could return to this state in relatively short order. On a positive note, the Company has shown to the likes of Apple, Microsoft and Samsung that its tin is 100% conflict-free.

There are no “sure things” out there, you have to take on risk to get your rewards. Enough investors are comfortable with the risk of Alphamin to have taken the stock from C$0.26/share in December 1st, 2020 to yesterday’s close of C$0.72. One of the world’s highest-grade tin resources, Alphamin is up 177% in the last 5 months.




InvestorIntel Interviews Christopher Ecclestone on the Hallgarten Report titled “Riding the Wave of Resurgent Tin”

In a recent InvestorIntel interview, Peter Clausi spoke with Christopher Ecclestone, Principal and mining strategist at Hallgarten & Company about initiating an analyst coverage on Alphamin Resources Corp. (TSXV: AFM) titled Riding the Wave of Resurgent Tin.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Christopher highlighted the shortage of tin because of years of underinvestment in the sector and big alluvial deposits in Malaysia and Indonesia running out of resources. “Most of the tin deposits are under 1%,” he said. With a tin grade of roughly 4.5%, Alphamin’s Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. Christopher said that with Alphamin producing about 4% of the world’s mined tin it is the “first new tin major since the 1970s.”

To watch the full interview, click here.

About Hallgarten & Company

Hallgarten & Company was founded in 2003 by the former partners of a well-known economic think-tank. Their output encompasses top-down and bottom-up research from a Classical Economic (Austrian School) perspective. Over the years, the team has successfully picked trends using our macroeconomic underpinnings to guide investors through the treacherous waters of the markets. It was only natural, in light of the focus of Classical Economics upon the “real value” of monetary assets that the firm’s strengths should ultimately have become evident in resources sectors and projections of commodity trends.

Hallgarten & Company has advised and managed portfolios of offshore and onshore hedge funds.

Hallgarten also provides consultancy services on Latin American economic, politics and corporate matters including the production of bespoke research.

About Alphamin Resources Corp.

Alphamin Resources is a low cost tin concentrate producer from its high grade deposit at Mpama North. This is on its mining license and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed on the Toronto Stock Exchange (TSXV: AFM) and the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin are aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within our licensed footprint. Their management team has successfully developed and brought the Bisie tin mine to production and is focused on taking the business to the next level as they pursue their objective of realising the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements.  Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company.  The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on www.sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




Alphamin Benefits from Rising Tin Prices as it Executes on its Growth Strategy

Earlier this month, Alphamin Resources Corp. (TSXV: AFM | OTC: AFMJF | FSE: 21L | JSE: APH) reported that it achieved record fourth-quarter production and EBITDA from its 84% owned, high-grade Bisie Tin mine in the Democratic Republic of the Congo (DRC).

Tin production was 2,898 tons, up 13% from the previous quarter and the Company recorded EBITDA of US$16.7 million, up 4%, at a tin price of US$18,497 per ton.

Revenue for 2020 was US$187.4 million with EBITDA of US$58.3 million, up 590%.

In the current quarter, Alphamin should record EBITDA improvement again as it benefits from the rising tin price, currently around US$28,000 per tonne.

Tin is one of the best-performing metals, up 36% year-to-date and 95% higher year-over-year.

Tin 1-Year Chart

Source: S&P Capital IQ

Alphamin’s Bisie Tin Project

The Bisie Tin Project lies 180 kilometers northwest of Goma, the capital of North Kivu province, in north-eastern DRC.

The project consists of five exploration licenses and one current mining license (Bisie Mine), covering 1,270 square kilometres.

The Bisie Mpama North deposit consists of a NI 43-101 Proven & Probable Mineral Reserve of 3.33 million tonnes at 4.01% tin.

According to the Company, the Bisie mine is one of the world’s highest grade tin mines at an average grade of approximately 4.5% tin, which is the equivalent in value to 14.6 g/t gold or 12% copper.

Growth Initiatives for 2021

Alphamin is executing four main initiatives to grow the current resource and increase production.

  1. Fine Tin Recovery Plant
    • Alphamin plans to increase production by building a Fine Tin Recovery Plant.
    • Currently, the plant is 80% complete and is on schedule for commissioning in June 2021.
    • The Fine Tin Recovery Plant should increase annual production by 1,000 tons to 12,000-13,000 tons.
  2. Drilling at the Mpama South Deposit
    • The Mpama South deposit is located 0.75 km south of the current processing facility.
    • Phase 1 is planned as a 6,000 metre drill program that is scheduled to run from December 2020 until March 2021, and 4,152 metres (20 holes) were completed by February 28.
    • Phase 2 is planned as a 2,500 metre drill program to be completed during the third quarter of 2021.
    • The objective of the drill programs is to produce a maiden NI43-101 Mineral Resource during 2021.
    • Additionally, the Company wants to test the extent of the mineralization to depths of up to 500 metres below the surface and along strike.
    • The end goal is to understand the potential for establishing another long-life, high-grade mine at Mpama South.
  3. Mpama North Mine Life Extension
    • Alphamin also plans to drill down-dip and along strike beyond the existing resource boundaries to determine the extent of the mineralization to extend the life of mine at Mpama North.
    • A 6,000 metre drilling campaign is planned during the second quarter from an underground location on Level 6.
    • The goal is to extend the Mpana North Mine beyond 2030.
  4. Regional Exploration
    • The 14-kilometre Bisie Ridge hosts both the Mpama North and Mpama South deposits.
    • The Company has identified two drill targets for further exploration in 2021 with the goal to discover at least one additional ore body.

The Tin Market

Tin has seen a surge in industrial demand from high-end computer chips that use the metal for soldering and a supply shock with the recent coup in Myanmar.

Tin has a variety of uses including solder, batteries, chemicals, copper alloys, and tinplate, and should benefit from the electrification of the world economy.

Tin is already a critical metal in China and the United States as those countries see the importance of ensuring a local supply and sufficient quantities to meet domestic consumption.

Final Thoughts

According to the International Tin Association, with Alphamin holding 8% of the Global Tin Reserves (2019) and 4% of the Global Tin Resources (2019), the Company stands to benefit from tin entering a new demand phase from “green” technologies such as electric vehicles, energy storage, and renewables.

With the increased cash flow due to surging tin prices, Alphamin is poised to execute on its growth initiatives for 2021 and perhaps even return some dividends to shareholders.

The stock closed yesterday at C$0.56 with a market cap of C$663 million.

Global Tin Reserves and Resources
Source: