Alphamin Resources Corporation, a Canada and Johannesburg Stock Exchange-listed company, reported a surge in tin production and sales during the second quarter, ending on June 30. The company expects to post record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $167 million, marking a 6% increase from the previous quarter. Tin output reached 5,013 tons, while sales amounted to 5,014 tons over the three-month period. These figures represent the first four-quarter rolling period of 20,000 tons achieved since operations began. All-in sustained costs (AISC) rose 6% to $19,043 per ton, while net cash dropped by 35% to $90.67 million. The company operates primarily in the Democratic Republic of Congo, where its Mpama North and Mpama South mines are considered among the world's highest-grade tin deposits. Contained tin production for the quarter aligned with annual targets of 20,000 tons. The average tin price increased by 5% to $51,957 per ton, contributing significantly to the rise in EBITDA. However, processing recoveries declined slightly, dropping from 74.2% in the first quarter to 72.8% in the second quarter. The decline in recovery rates was linked to the presence of excessive near-gravity material within the current mining areas, which disrupted the efficiency of the gravity circuit. On-mine operating costs climbed due to rising fuel prices, affecting diesel and transportation expenses. Fuel stocks remained at full capacity, though higher prices are anticipated to persist into the third quarter as ongoing orders reflect elevated pricing trends. Drilling activities continued at both Mpama North and Mpama South mines, yielding mixed outcomes. At Mpama North, a total of 1,893 metres was drilled during the quarter, with three holes successfully completed. One additional drill hole was abandoned due to challenging geological conditions. At Mpama South, drilling efforts covered 3,653.7 metres, with five holes completed and two others halted for similar reasons. The drilling aimed at extending the defined resource at greater depths, with three of the five completed holes encountering visible cassiterite mineralization. The company noted that the higher-than-average levels of metal sulphides in the current mining area contributed to the challenges faced in maintaining optimal processing efficiency. Additionally, all-in sustained costs per ton increased due to a combination of factors including off-mine expenses such as higher royalties, export duties, marketing commissions, and net smelter returns, which tend to rise alongside tin prices. Timing of capital expenditures also played a role in the cost escalation. Looking ahead, Alphamin continues to focus on expanding its operational footprint and enhancing resource potential at its Congolese sites. With ongoing exploration and development efforts, the company aims to maintain its position as one of the leading producers of high-grade tin in the region. The performance in the second quarter underscores the resilience of its operations amid fluctuating market conditions and operational complexities.
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