Back in July, we introduced our Stockhouse audience to an intriguing, blue sky metals & mining play in the often overlooked tin sector. Yes, tin. And it’s a commodity that is more in demand than ever. Resultingly, prices are up. In fact, tin prices are due to extend their rally next year as top consumer China stocks up on the metal due to a recovery in demand for electronic goods. Today, the bulk of tin – creating up to nearly half of its demand – goes into solder which is used chiefly in the electronics industry to connect components.
The benchmark price of tin on the London Metal Exchange slid to about $12,500 per tonne in March – the lowest level in more than a decade – as COVID-19 adversely impacted demand. But tin has since
rebounded by a vigorous 45% since early September, largely due to the recovery in China.
Mauritius-based
Alphamin Resources Corp. (AFM) (
TSX-V.AFM,
OTCMKTS: AFMJF,
Forum) is the second largest tin producer outside of China – a low-cost, high-grade tin concentrate producer from its deposit at Mpama North in the North Kivu Province of the Democratic Republic of Congo (DRC). At a tin grade of approximately 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.
In addition to this mining license, the Company has an additional three exploration licenses in close proximity to its current footprint. And, now, with a red hot global tin market, Alphamin is planning to increase production further.
In the News
On October 29th, the Company released Q3 results from the following production and EBITDA update for the quarter ending September 2020.
INVESTOR ALERT: Most notably,
tin sales were up 3%, run-of-mine volumes processed increased 5% to 96,086 tons, and a Company increase of nearly 25% in EBITDA. Alphamin Resources has grown its net income at a significant rate of 53% in the last five years. When compared with the tin industry which has a growth rate of 31% in the same period, this is an impressive 22% percent increased ROI versus other producers.
Financial and Operational Highlights
- Tin sales up 3% to 2,695 tons versus previous quarter
- EBITDA up 24% to US$16.1 million for the quarter
- Run-of-mine material processed up 5% versus previous quarter
- Q4 2020 production guidance of 2, 600 to 2,800 tons contained tin
- Commencement of significant growth initiatives
Production and Financial Summary for the Quarter ended September 2020
| Description |
Units |
Actual |
|
|
Quarter
ended
September
2020 |
Quarter
ended June
2020 |
Variance |
| Tons Processed |
Tons |
96,086 |
91,928 |
5% |
| Tin Grade Processed |
% Sn |
3.8 |
4.3 |
-12% |
| Overall Plant Recovery |
% |
71 |
69 |
3% |
| Contained Tin Produced |
Tons |
2,563 |
2,739 |
-6% |
| Contained Tin Sold |
Tons |
2,695 |
2,613 |
3% |
| EBITDA |
US$'000 |
16,052 |
12,900 |
24% |
| AISC per ton tin sold |
US$/t |
10,777 |
10,849 |
-1% |
| Tin Price Achieved |
US$/t |
17,436 |
15,359 |
14% |
Alphamin is clearly riding a strong wave. For the quarter ended September 2020, the Company released
record-setting Q3 results from the following production and EBITDA update. These outstanding results continue to speak volumes for the Company looking forward. And most importantly, the tin price continues to rise now almost 10% higher that that of Q3, meaning a further profit jump is likely.
“Tin to Win”
The greatest drivers for tin demand will be the “Internet of Things” and climate change. Researchers from the Massachusetts Institute of Technology (MIT) have estimated that tin is the metal most likely to be positively affected by future technology.
As mentioned earlier, while tin is primarily used for soldering circuit boards, researchers predict tin will be
the material of choice for the next generation of energy-generating and storage devices while being the “glue” that holds all of these components together. This will make tin a vital component in the manufacturing of electric vehicles, advanced robotics, renewable energies, and advanced computing.
(Click image to enlarge)
About the Company
Alphamin Resources Corp is a Mauritius-based company. It is engaged in the business of producing tin from its Bisie mine in the North Kivu province of the Democratic Republic of Congo.
The Company’s management team has successfully developed and brought the Bisie tin mine to targeted production levels, ahead of its technical report released early 2020and is focused on taking the business to the next level. The team say they are never satisfied with the status quo and continues to grow production while, importantly, initiating drilling activities to prove that its license area represents one of the world’s most significant tin complexes. And that together with tin being pro-technology, this makes for a great business proposition.
For more information, visit
alphaminresources.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.