Alphamin Resources Reports Strong Q2 Performance and Exploration Progress Despite Operational Disruptions
Alphamin Reports Q2 Growth & Tin Exploration Update
TSX-V- and JSE-listed Alphamin Resources ended the second quarter, which concluded on June 30, with a net cash position of $50 million.
This marks a significant $52 million improvement from a net debt position of $2 million at the end of the first quarter.
Contained tin production for the quarter totaled 4,106 tonnes, falling short of the targeted 5,000 tonnes.
This shortfall was primarily due to a temporary suspension of operations on March 13, prompted by security concerns. Production resumed in phases starting April 15.
The company reported that tin production for May and June alone reached 3,361 tonnes, aligning with its annualized production target of 20,000 tonnes.
Processing facilities outperformed expectations, with plant recoveries averaging 77% for the quarter, up from 75% in Q1.
Second-quarter tin sales totaled 4,587 tonnes—a 19% increase over the previous quarter. This figure exceeded production due to the clearance of a sales backlog from Q1.
The average tin price achieved during the quarter was $32,512 per tonne, consistent with the prior quarter. At the time of reporting, the tin price was approximately $33,700 per tonne.
The company provided EBITDA guidance of $75 million for Q2, a 21% increase from the $62 million recorded in Q1. This increase was primarily driven by higher sales volumes and the backlog clearance.
Alphamin estimated its all-in sustaining cost (AISC) at $16,500 per tonne, slightly higher than the $16,279 per tonne reported in Q1. The rise was attributed to the March stoppage and restart in April. Operating expenditures included fixed costs and payroll for the entire period, as well as care-and-maintenance and mine restart expenses.
Exploration Activities
Alphamin continued advancing its exploration strategy, focused on three main objectives:
Extending the resource base and life-of-mine at Mpama North and Mpama South.
Discovering new tin deposits near the Bisie mine.
Conducting grassroots exploration across its broader landholding.
Exploration drilling at Mpama North and Mpama South resumed in Q4 2024.
At Mpama South, a surface drilling campaign using one rig targeted down-dip, up-dip, and strike extensions. Four holes were completed during Q2:
The first two holes, targeting the far southern extensions of the mineralized zone, did not intersect visible tin mineralization.
The third hole (BGH191A) intercepted multiple narrow cassiterite veins in three zones (9.04 m, 0.86 m, and 1.04 m), suggesting potential continuation of the mineralized system.
The fourth and fifth holes (BGH192 and BGH193) followed, with BGH192 intersecting visible cassiterite veins, while BGH193 did not.
A sixth hole (BGH194), completed later in the quarter, intercepted visible cassiterite veins further north of BGH193 and below the current resource.
Underground exploration drilling also resumed at Mpama North in Q4 2024, focusing on the northern extensions of the mineralized zone.
Eight holes totaling 1,525 m were drilled, intersecting chlorite alteration zones associated with tin mineralization and minor cassiterite veins.
One hole encountered wide zones of massive sulphides, often used as markers for tin-bearing horizons, indicating potential deeper mineralization.
Hole MNUD008A, completed in early January 2025, which intersected a thick chlorite-altered zone containing visible cassiterite, 20 m north of the previous northernmost resource drillhole and 200 m below the current mining level.
Hole MNUD009, drilled 20 m north of MNUD008A, also encountered a thick zone of visible cassiterite.
Alphamin announced plans to deploy a dedicated surface drill rig to initiate deeper drilling at Mpama North.
External laboratory assay results for all exploration drilling are expected to be released during Q3 2025.
