The tin market isn’t slowing down, neither is this Venture stock

The mining sector has long been a market where investors have wanted to have their cake and eat it, too.

While many operations release news about record production levels, we know this comes at the expense of depleting resources and reducing a mine’s life.

The price of tin has increased recently as it faces major threats to its supply – major producing countries Indonesia and Myanmar stating they are looking to curtail exports.

One company continuously manages to find new riches under the surface in greater numbers.

With its recent news, Alphamin Resources Corp. (TSXV:AFM/JSE:APH) provided its shareholders with the best of both worlds.

A record-setting quarter:

In mid April 2023, the company reported “record quarterly tin production and Q1 2023 EBITDA guidance of US$41.4m.”

Alphamin Resources achieved record tin production of 3,187 tonnes for the quarter ended March 2023, exceeding market guidance of 3,000 tonnes. Run-of-mine volumes processed were scaled back due to the higher tin grades to increase recoveries. The run-of-mine and crushed ore stockpiles ahead of the processing plant were at record levels at quarter-end, being 15,011 tonnes at an average tin grade of 5,98 per cent.

Sales volumes were in-line with production at a tin price of US$26,432/t. Guidance for all-in sustaining costs per tonne of tin sold is 4 per cent higher than the prior quarter at US$13,900 because of the increase in tin prices which impacts off-mine costs such as royalties, export duties, the smelter deductor, and marketing fees.

The company noted that commendable production and sales together with a higher tin price resulted in a 53 per cent increase in expected EBITDA of US$41.4 million for the quarter.

Q1 2023 operational and financial summary:

Expansion project:

Alphamin’s Mpama North mine is the world’s highest-grade tin mine. The team announced that its tin expansion project is expected to increase annual tin production by up to 60 per cent.

A total of 808 metres of underground development on two levels to connect Mpama North and Mpama South has been completed to date, of which 369 metres of development was completed in Q1 2023.

The Mpama South deposit has been intersected through several underground crosscuts. The company expects development will accelerate significantly come May 2023, as more underground fleet equipment arrives at the site. To plan and prepare for stoping later this year, additional grade control drilling is underway.

Work began on the Mpama South portal with the excavation, stabilising, and shotcreting of the portal area being completed. The adit was established with 49 metres of adit and associated cubbies having been excavated and supported through moderately weathered ground. When the crews reach hard rock towards the end the month and advance rates continue to increase, ground conditions are expected to improve significantly.

The Mpama South deposit is less than a kilometre from the company’s current ore processing facility and team believes it has the potential to add to current production and significantly extend the life-of-mine operations of the current facility.

The processing plant is 66 per cent complete and is the company is confident it is progressing towards its planned commissioning in December 2023.

Investment corner:

A producer of 4 per cent of the world’s mined tin, Alphamin Resources is a low-cost tin concentrate producer from its high-grade deposit at Mpama North in the Democratic Republic of Congo (DRC). This is on its mining license and it has additional exploration licenses. in the North Kivu Province of the DRC.

This is a consistent dividend paying company that has posted several record-breaking quarters in recent history, proving that this is a stock with solid downside protection while also looking at impressive growth potential. The tin market is ready for a rebound and is projected to reach US$9.3 billion by 2030, according to analysis firm verified market research.

Offering quite a solid investment profile, Alphamin Resources is surging where many mining stocks are generally depressed. This company’s stock is up 22.5 per cent over the past month as the team makes a case that will be hard for many mining investors to resist.

To keep up with regular updates, visit Alphaminresources.com.

Disclaimer:

The Information contained here is a paid advertisement and is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Prior to making any investment decision, it is recommended that readers consult directly with the public company and seek advice from a qualified investment advisor. The corporate information included in this was provided by Alphamin Resources Corp. in order to help investors learn more about their company. The information provided is purely and solely the responsibility of Alphamin Resources Corp. who has reviewed and approved all material for accuracy. Stockhouse does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. Investing in securities is speculative and carries risk. Persons who wish to buy or sell securities should only do so at their own risk and in consultation with their registered securities advisers. Stockhouse does not own stock in Alphamin Resources Corp.For full disclaimer information, please click here.