inerAlphamin Resources Corp, a Canadian tin producer, has announced a remarkable achievement in its 2023 output, producing a record 12,568 tonnes of tin. This figure represents a 1% increase from the previous year. The company’s fourth-quarter production also saw a 1% year-on-year rise, reaching 3,126 tonnes.
Producing about 4% of the world’s tin, Alphamin’s operations are predominantly based at the high-grade Mpama North mine in the Democratic Republic of Congo. The company is also focusing on the Mpama South expansion project nearby, which is anticipated to boost annual tin production by 60%.
In a recent update, Alphamin reported the on-time completion of the initial development of Mpama South. This progress includes an underground development designed to maintain sufficient mineral resources, ensuring adequate stockpiles before the commissioning of the processing plant. This strategic move aims to enable a swift increase in tin production.
The mechanical erection and installation of the processing plant are nearly complete, with the remaining tasks involving electrical cabling, instrumentation installation, and plant commissioning.
Originally set to begin production in 2023, logistical challenges and poor road conditions have pushed the start date of Mpama South’s processing activities to the end of March 2024. Consequently, the capital expenditure for Mpama South is now projected to exceed the initial $116 million budget by about 10%, primarily due to these delays and minor scope adjustments.
To support this venture, Alphamin has successfully negotiated a four-year extension of its current offtake agreement with the Gerald Group. This agreement includes a significant reduction in tin marketing costs, approximately 60%, and an up to $50 million tin prepayment arrangement, effective immediately.
With the incremental production from Mpama South slated to begin in April, Alphamin anticipates an annual tin production of between 17,000 and 18,000 tonnes for the current year.
As of noon ET in Toronto, Alphamin’s stock saw an increase of 3.4% to C$0.91 per share, resulting in a market capitalization of about C$1.1 billion ($820 million). Over the past year, the company’s shares have fluctuated between C$0.68 and C$1.10.
