Alphamin Resources Corp. (AFM, APH) has announced a record tin production for Q2 2024. The company reported a 28% increase in tin production compared to the previous quarter. This significant achievement underscores Alphamin’s robust operational performance and strategic growth initiatives.
Record Production and Sales Overview
Alphamin produced 4,027 tonnes of tin in Q2 2024, a 28% increase from Q1 2024. Tin sales for the quarter were 3,245 tonnes. The company expects to clear the increased tin stocks in Q3 2024.
| Description | Units | Q2 2024 | Q1 2024 | Change |
|---|---|---|---|---|
| Ore Processed | Tonnes | 166,676 | 109,424 | 52% |
| Tin Grade Processed | % Sn | 3.20 | 3.83 | -16% |
| Overall Plant Recovery | % | 75 | 75 | 0% |
| Contained Tin Produced | Tonnes | 4,027 | 3,142 | 28% |
| Contained Tin Sold | Tonnes | 3,245 | 4,126 | -21% |
| EBITDA | US$’000 | 54,238 | 52,094 | 4% |
| AISC | US$/t sold | 15,576 | 14,858 | 5% |
| Average Tin Price | US$/t | 32,314 | 26,863 | 20% |
Financial Highlights
The company reported an EBITDA of US$54.2 million for Q2 2024, up 4% from Q1 2024. The increase in EBITDA was driven by higher tin prices and production. The average tin price achieved was US$32,314 per tonne, a 20% increase from the previous quarter.
Operational Performance
The new Mpama South processing facility started commercial production on May 17, 2024. The facility contributed significantly to the record tin production in Q2 2024. The ore processed increased by 52% to 166,676 tonnes due to the expansion.
Production and Sales Impact
The company reported a 21% decrease in tin sales to 3,245 tonnes in Q2 2024. This decrease was due to a high sales volume in the previous quarter clearing the backlog from Q4 2023. The delay in Q2 2024 sales is expected to clear in Q3 2024.
Cost Analysis
The All-In Sustaining Cost (AISC) for Q2 2024 was US$15,576 per tonne, a 5% increase from Q1 2024. The increase in AISC was due to the higher tin price impacting royalties, export charges, net smelter returns, and marketing fees.
Future Outlook
Alphamin expects further increases in tin production in Q3 2024. The Mpama South facility, performing above expectations, will continue to drive production growth. The company anticipates higher sales volumes in the upcoming quarter, contributing positively to EBITDA.
Conclusion
Alphamin’s record Q2 tin production demonstrates its operational strength and strategic growth. The company’s expansion efforts, particularly the Mpama South facility, are paying off. With increased production and anticipated higher sales, Alphamin is well-positioned for continued growth.
