Alphamin’s DRC tin expansion to start production in April

Canadian tin producer Alphamin Resources (TSXV: AFM) produced a record 12,568 tonnes of the metal in 2023, up 1% from the previous year, it said on Friday. Production during the fourth quarter reached 3,126 tonnes, also a 1% year-on-year improvement.

Alphamin currently produces about 4% of the world’s tin from its high-grade Mpama North mine located in the Democratic Republic of Congo. It is also developing the nearby Mpama South expansion project, which is expected to increase annual tin production by 60%.

In its results release, Alphamin said the initial development of Mpama South has already been completed on time. The underground development should ensure adequate stockpiles ahead of the processing plant’s commissioning, allowing for a rapid ramp-up of production.

The processing plant mechanical erection and installation is essentially complete with the main outstanding work relating to completion of the installation of electrical cabling, the installation of instrumentation and the commissioning of the plant, it added.

As the company previously reported, logistical delays due to poor road conditions delayed the start of processing to the end of March. The miner had initially aimed to begin production during 2023.

Alphamin noted a 10% rise in capital costs over the US$116 million budgeted for Mpama South as a result of the delays and minor scope changes.

The company negotiated a four-year extension to its offtake agreement with the Gerald Group in return for an up to US$50-million tin prepayment arrangement and a 60% reduction in tin marketing costs. 

On the basis of incremental tin production from the Mpama South plant from April onwards, Alphamin said it expects contained tin production of between 17,000 and 18,000 tonnes for this year.

Alphamin’s stock was up by 4.6% to 92¢ a share this afternoon in Toronto, giving it a market capitalization of $1.2 billion. The shares traded within a range of 68¢ to $1.10 over the past 52 weeks.