- Alphamin Resources, a profitable mining stock that produces 4 per cent of the world’s mined tin, has posted record FY2023 production figures from its high-grade operation in the Congo
- Total 2023 production of 12,568 tonnes of tin concentrate is expected to grow to between 17,000-18,000 tonnes in 2024
- Alphamin is a leading tin producer and explorer exploiting the world’s highest-grade tin resource
- Alphamin stock is down by 12.62 per cent year-over-year, but has gained 246.15 per cent since 2019
Alphamin Resources (TSXV:AFM), a profitable mining stock that produces 4 per cent of the world’s mined tin, has posted record FY2023 production figures from its high-grade operation in the Congo.
The company produced 12,568 tonnes of tin concentrate in FY2023, which is up by 1 per cent year-over-year and well ahead of market guidance of 12,000 tonnes.
The profitable tin producer has increased revenue by more than 14x from US$27.22 million in FY2019 to US$391.05 million in FY2022, while increasing net income by 20x from US$4.98 million in FY2019 to US$100.93 million in FY2022, plus more than US$45 million in FY2023 through Q3, with eyes on creating further shareholder value in FY2024.
Key shareholder updates for FY2024
Lower Q4 FY2023 revenue: Poor road conditions because of record heavy rainfall impacted transport times and export revenue receipts during Q4 FY2023, leading to contained tin sales of 2,046 tonnes, which is 1,080 tonnes less than the quarter’s production, resulting in an approximately US$14 million impact on EBITDA, and high levels of tin in stock, all of which should be significantly remedied and reflected in Q1 FY2024.
Lower EBITDA guidance: FY2023 EBITDA guidance is set at US$136 million at an average tin price of US$26,009/t, well below FY2022’s total of US$222 million. Guidance for all-in sustaining costs per tonne of tin sold is US$14,259 for the year, in line with recent performance.
Growth-focused expenditures: On-mine operating expenditures increased by 5 per cent year-over-year because of a 32 per cent increase in underground development metres at Mpama North, resulting in “increased developed reserves, higher run-of-mine ore stockpiles and improved future operational flexibility,” according to a news release.
FY2024 production guidance: The company expects to have adequate mineral stockpiles at Mpama South as it ramps up its processing plant for tin production by the end of March 2024. This production boost allows Alphamin to forecast between 17,000-18,000 tonnes in 2024, up considerably from the 2023 figure, and well in line with its history of operational excellence.
US$50 million in prepayments: Alphamin has secured a four-year extension (through Sept. 30, 2028) on its off-take agreement with the Gerald Group, including an approximately 60 per cent reduction in tin marketing costs and up to US$50 million tin prepayments.
FY2024 capital allocation: Continuing with its focus on growth, ongoing exploration and a high dividend yield, the company is focused on completing the Mpama South project in Q1 2024.
Alphamin’s operational and financial highlights for Q4 and FY2023
| Description |
Units |
Year ended December 2023 |
Year ended December 2022 |
Change |
Quarter ended December 2023 |
Quarter ended September 2023 |
Change |
| Ore Processed |
Tonnes |
400,691 |
436,400 |
-8% |
105,510 |
100,395 |
5% |
| Tin Grade Processed |
% Sn |
4.15 |
3.82 |
9% |
3.98 |
4.08 |
-3% |
| Overall Plant Recovery |
% |
75 |
75 |
1% |
75 |
76 |
-2% |
| Contained Tin Produced |
Tonnes |
12,568 |
12,493 |
1% |
3,126 |
3,104 |
1% |
| Contained Tin Sold |
Tonnes |
11,385 |
12,764 |
-11% |
2,046 |
3,110 |
-34% |
| EBITDA (FY2023 and Q4 2023 guidance) |
US$’000 |
135,541 |
222,215 |
-39% |
20,321 |
38,429 |
-47% |
| AISC (FY2023 and Q4 2023 guidance) |
US$/t sold |
14,259 |
14,237 |
0% |
14,645 |
14,625 |
0% |
| Dividends paid (cents per share) |
C$ cps |
6 |
6 |
0% |
0 |
3 |
n/a |
| Average Tin Price Achieved |
US$/t |
26,009 |
30,636 |
-15% |
25,157 |
26,557 |
-5% |
Alphamin Resources is a leading tin producer and explorer active in the Democratic Republic of Congo. At a grade of approximately 4.5 per cent, the company’s approximately 10,000-tpy Mpama North is the world’s highest-grade tin resource by a factor of 4x. Additional production at the Mpama South and Bisie resources is slated to further strengthen the company’s bottom line.
Alphamin stock (TSXV:AFM) is up by 2.27 per cent, trading at C$0.90 per share as of 10:01 am ET. The stock is down by 12.62 per cent year-over-year, but has gained 246.15 per cent since 2019.
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