Every now and then an event occurs, which time has come. Its success is initially counter intuitive, yet totally obvious in hindsight. Alphamin represents such an event. Alphamin has the best tin orebody in the world, in a commodity with solid future prospects, managed by an experienced team, supported by well capitalised investors, who are astute industry specialists, in an area with abundant resources that is poised for rapid economic growth.
Through a well-designed and carefully executed exploration program including 40 000 meters of diamond core drilling, at Mpama North alone Alphamin has 210kt of contained tin in the Measured and Indicated categories, with an additional 23kt in the Inferred category. These Resources will support a 12.5-year Life of Mine producing around 9 642 tonnes contained tin per annum. Mpama South and other exploration targets will be explored further in the near future. A recent Front End Engineering Design (FEED) was carried out by DRA Engineering to finalise the project’s Control Budget Estimate (CBE) at US$151.4 million.
Alphamin will produce on average 9 642 tonnes tin per annum, at a cash cost of US$8 837 per tonne tin produced and US$10 359 per tonne tin sold after duties, royalties, levies and marketing fees, generating an average EBITDA of ~$110m per annum. The project has a payback period of less than two years. Alphamin estimates it will be in the lowest cost quartile of all tin producers.
|HIGHLIGHTS AND ROBUST ECONOMIC PERFORMANCE INDICATORS
|Proven and probable reserves
||Increase in proven and probable reserves to 4.67 Mt @ 3.58% Sn containing 167.3 Kt of tin
||Increase in LoM to 150 months (12.5 years)
|Throughput rates and recoveries
||Optimised process flow sheet resulting in 6% higher annual average plant throughput rates, and an increase in tin recoveries to 73%
||Cash margin per tonne of tin sold of some US$ 11 040, resulting in LoM annual average EBITDA of approximately US$ 110 million (constant 2017 terms)
|Net present value 8%
||US$ 402.2 million
|Real, after tax, project IRR
||17 months from 1st tin production