Alphamin Exceeds Second Quarter Guidance and Achieves Record Production and EBITDA

GRAND BAIE, Mauritius, July 08, 2020 (GLOBE NEWSWIRE) — Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the “Company”) is pleased to provide the following production and EBITDA update for the quarter ended June 2020:
Tin production up 29% to 2,739 tons versus previous quarterAISC per ton of tin sold down 13% to US$10,849 versus previous quarterEBITDA of US$12,9 millionQ3 2020 production guidance of 2,600 – 2,800 tons contained tinProduction and Financial Summary for the Quarter ended June 2020¹Tin production increased 29% to a quarterly record 2,739 tons and was higher than our previous market guidance due to better than expected tin feed grades. Plant throughput increased 8% to 91,928 tons from higher underground volumes derived from the new mining method. During the quarter, mined volumes exceeded plant throughput by some 4,000 tons increasing the run-of-mine stockpiles. The processing plant is performing well and various initiatives aimed at achieving consistently higher throughput are underway.The all-in sustaining cost per ton of payable tin sold reduced by 13% to US$10,849 mainly attributable to increased tin production. Additionally, the previous quarter’s costs were negatively affected by high arsenic penalties and exceptional logistical costs incurred while the national road bridge was under repair.
EBITDA of US$12,9 million was recorded at an average tin price of US$15,359/t. This represents an EBITDA margin of 32% in a relatively low tin price environment.The Bisie tin mine recorded two lost-time injuries during the past quarter. An employee and a contractor sustained minor injuries during two separate accidents – both will return to work on 10 July 2020.
Production Guidance for the next Quarter:
We expect contained tin production of between 2,600 and 2,800² tons for the quarter ending September 2020. The tin price has recently increased to around US$17,000/t compared to a price achieved of US$15,359/t during this past quarter, which if maintained bodes well for the next quarter’s EBITDA and cash flow generation.
Covid-19 Pandemic and Impact on Operations:
The health of our employees is of paramount importance and in this regard the Company has a range of Covid-19 awareness, prevention and other risk mitigation controls in place.To date, the Company has been able to continue with normal production and concentrate sales activities.Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended 30 June 2020 are expected to be released on or about 7 August 2020.
Qualified Person
Mr Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining Engineering (Hons.), is a qualified person (QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release. He is a Principal Consultant, Partner and Director of Sound Mining Solutions, an independent technical consultant to the Company.__________________________________________________________________________________________
¹Production and financial information are disclosed on a 100% basis. Alphamin indirectly owns 80,75% of its operating subsidiary to which the information relates.²Production guidance is based on certain estimates and assumptions, including but not limited to: quantity of material processed, tin grades of processed material and processing recoveries and assumes mining operations will continue to be conducted in the same manner as the previous quarter and will not be further impacted by the Covid-19 pandemic.