Welcome to Alphamin

Unlocking the true potential of one of the world’s largest tin deposits to benefit local and investment stakeholders

 

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
LoM 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 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 49.1%
Payback period 17 months from 1st tin production

Alphamin has the expertise, resolve and determination to overcome the challenges on the way to delivering a lucrative tin mining operation in North Kivu

The Bisie tin deposit is one of the largest and most significant tin deposits in the world. On the assumption that construction activities will commence in Q3 2017, first production of tin in concentrate is anticipated in Q4 2018. Steady state production is anticipated by 2019.

Future tin supply is globally uncertain as tin inventories are running low and economically viable tin reserves are being depleted. The International Tin Research Institute (ITRI) has forecast that there is likely to be a global shortfall of tin commencing in 2018. There are a limited number of active industrial scale tin mines outside of China and Indonesia and the majority of other new projects face significant technical, financing and other challenges, in addition obtaining the required permits to build new mines remain complex. As a result, tin mining companies should become of increasing interest to the owners of consumer brands and their manufacturers, who use tin in their products (laptops, mobile phones and cars). Consumer companies will need to secure future supply. The Bisie tin deposit is one of the largest and most significant tin deposits in the world – providing the ideal foundation to build a premier tin producer on.

Alphamin presents a very attractive investment opportunity, unlocking rich tin reserves by driving economic growth and stability in North Kivu

The Bisie Tin Project presents an attractive opportunity to develop one of the highest grade known tin deposits in the world and to promote economic growth and stability in North Kivu. The Bisie operation will supply conflict-free tin from the eastern DRC. The Alphamin operation will be the manifestation of what conflict mineral legislation aimed to achieve. Alphamin is expected to deliver a significant return to investors through the full range of expected tin prices. Under the updated Feasibility Study the net present value (NPV) of the investment in Bisie amounts to US$402.2 million and the internal rate of return (IRR) is 49.1%. The Feasibility Study is based on a US$17 300 per tonne tin price, the current price (19 July 2017) is US$20 100.

Alphamin is committed to economic prosperity in North Kivu and stability in the region

The Project will be a catalyst for regional economic growth and is committed to contributing to the stability and economic activity in North Kivu. Alphamin, with its Bisie mine, will contribute significantly to benefit the community and other stakeholders alike. Local communities strongly support the development of the Project, as it will create employment and facilitate the development of supportive infrastructure in North Kivu. Local community support will be further enhanced through the Lowa Alliance, a not-for-profit foundation that will drive comprehensive and ongoing economic and social development, which will be funded by ABM, donations and the local communities.

The catalytic nature of Alphamin’s investment in the post-conflict region of the eastern DRC will have synergies with and optimise the humanitarian, stabilisation and development funding and initiatives of the GDRC and multiple donors (including the World Bank, European Union, United States Agency for International Development, the United Kingdom’s Department for International Development and others).

Promoting and protecting human rights

The Bisie tin deposit is one of the largest and most significant tin deposits in the world. On the assumption that construction activities will commence in Q3 2017, first production of tin in concentrate is anticipated in Q4 2018. Steady state production is anticipated by 2019.

Alphamin is a proud subscribing participant in the Voluntary Principles on Security & Human Rights. The participants recognize the importance of the promotion and protection of human rights throughout the world and the constructive role business and civil society can play in advancing these goals. Established in 2000, the Voluntary Principles on Security and Human Rights are a set of principles designed to guide companies in maintaining the safety and security of their operations within an operating framework that encourages respect for human rights. Please visit www.voluntaryprinciples.org for more information.