Canadian tin producer Alphamin Resources produced a record 12,568 tonnes of the metal in 2023, up 1% from the prior year, the company 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 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% once its up and running.
In its results release, Alphamin said the initial development of Mpama South has already been completed on time. The underground development should ensure sufficient developed mineral resources to ensure adequate stockpiles ahead of the processing plant’s commissioning, which will then allow for a rapid ramp-up of tin 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, the company said.
As previously reported, logistical delays due to poor inbound road conditions have deferred the commencement of processing to the end of March 2024. The miner was initially aiming to bring Mpama South into production during 2023.
The Mpama South capital expenditure cost to steady state production is now expected to exceed the $116 million budget by approximately 10% primarily as a result of the aforementioned delays as well as minor scope changes.
To gain access to additional funds, Alphamin has secured a four-year extension to its current offtake agreement with the Gerald Group on the basis of an approximate 60% reduction in tin marketing costs and an up to $50 million tin prepayment arrangement. The tin prepayment arrangement is effective immediately.
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 3.4% to C$0.91 a share as of noon ET in Toronto, giving it a market capitalization of C$1.1 billion ($820m). The shares traded within a range of C$0.68 to C$1.10 over the past 52 weeks.
