Consistent Growth in Tin Output

Alphamin has reported a surge in tin production in its latest results release, with the initial development of Mpama South completed on schedule. This accomplishment in underground development has ensured a robust base of mineral resources ahead of the processing plant’s commissioning, paving the way for a swift increase in tin production.

Further Progress on Processing Plant

The company has announced the near-completion of mechanical erection and installation at the processing plant. The remaining work mainly involves the installation of electrical cabling, instrumentation, and final plant commissioning. However, logistical setbacks due to poor inbound road conditions have resulted in a delay in processing commencement to the end of March 2024.

Exceeding Budget Expectations

With the estimated capital expenditure for steady-state production now anticipated to exceed the $116 million budget by approximately 10%, primarily due to logistical delays and minor scope changes, Alphamin has faced unexpected financial challenges. However, these setbacks have not deterred the company’s resolve to ramp up production.

Financial Backing for Production Expansion

Alphamin has secured a four-year extension to its offtake agreement with the Gerald Group to access additional funds. The extension is based on a substantial reduction in tin marketing costs and an up to $50 million tin prepayment arrangement, effective immediately. These financial arrangements position the company favorably for the production expansion.

Anticipated Production and Market Response

With incremental tin production expected from the Mpama South plant commencing in April, Alphamin forecasts a contained tin production ranging between 17,000 and 18,000 tonnes for the year. The positive outlook on tin production has already led to a 3.4% increase in Alphamin’s stock to C$0.91 a share in Toronto, with the market capitalization reaching C$1.1 billion ($820m).