Dual-listed Alphamin Resources’ tin sales were up 3% quarter-on-quarter to 2 695 t for the third quarter ended September 30.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 24% quarter-on-quarter to $16.1-million.
Run-of-mine material processed increased by 5% quarter-on-quarter, while contained tin production decreased by 6% quarter-on-quarter to 2 563 t.
The company’s production guidance for the fourth quarter has been set at 2 600 t to 2 800 t of contained tin.
Alphamin, which operates the Bisie mine, in the Democratic Republic of Congo, on October 29 said the tin price had recently increased to about $18 000/t compared with a price achieved of $17 436/t during this past quarter, which if maintained, would bode well for next quarter’s Ebitda and cash flow generation.
Following the debt reduction and restructuring completed in May, the balance sheet has been strengthened and, coupled with the increase in tin prices and steady production, the company has launched its growth initiatives during this past quarter.
These initiatives relate to construction of a fine tin recovery plant and drilling of the adjacent Mpama South deposit with a view to establishing a maiden resource.
Completion of both projects is part of the company’s two-year strategy to produce about 12 000 t/y to 13 000 t/y of contained tin and proving additional resource and life-of-mine extensions.
The fine tin recovery plant project is 46% complete and progressing on schedule for commissioning in April 2021. Estimated expenditure at completion is in line with the budget of $4.6-million.
Drilling at the Mpama South prospect will start in November.