Alphamin’s Mpama South extension of the Bisie tin mine went into first production in May 2024.
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Alphamin Resources, the JSE Alt X and Toronto-listed mining company, has reported a strong uptick in net profit for the year to December 31, 2024, but has warned that the conflict in the Democratic Republic of Congo (DRC) might impact its operations in the future.
The Mauritius-based owner of the Bisie tin mine in DRC said Tuesday that in late January 2025, insurgents started seizing strategic cities in Eastern DRC, including the city of Goma. Operations at the company's Bisie tin mine had continued uninterrupted until the end of February.
However, all mine personnel were evacuated, with only essential personnel left for care, maintenance, and security, after the insurgents started advancing westward towards the mine.
On April 9, 2025, 27 days after the decision to evacuate the mine was taken, Alphamin’s directors decided to initiate a phased resumption of operations at the mine.
In the year to December 31, Alphamin reported a surge in net profit to $141.51 million from $67.73m. Operating profit increased sharply to $216.18m from $105.01m.
“The company continues to monitor the situation. To date, the phased resumption of operations has progressed as planned,” Alphamin’s directors said in the results announcement.
As at December 31, 2024, the cash balance was $29.68m and the trade receivables balance was $64.16m.
The first quarter of the 2025 financial year production, up until the evacuation in March, together with concentrate on hand at year-end, was substantially dispatched from the mine, and by April 8, the majority of these lots successfully crossed the border, resulting in the settlement of accounts receivable from the customer, subsequent to the cessation of operations.
As at March 31, 2025, the cash balance stood at $71.81m and trade receivables came to $71.54m, of which $50.71m was due in less than 30 days.
In response, management negotiated extended payment terms on debt and other obligations - debt repayment had been deferred until February 28, 2026, while TMB Bank agreed to renew the $53m overdraft facility for a further 12 months.
“Based on the liquidity assessments prepared by management, the company has sufficient cash to operate for the next 12 months,” the directors said, barring any unforeseen material events.
In the fourth quarter of 2024, the company paid a final 2023 financial year cash dividend of 2 US cents per share. In the fourth quarter, an interim cash dividend of 4 US cents per share was paid.
The Mpama South processing facility went into commercial production on May 17, 2024, and had consistently produced tin concentrate at targeted volumes and sales specifications, the directors said. Mpama South is an expansion of the existing Mpama North mine at Bisie mine, which contributed 4% of the world's mined tin supply in 2023.
Alphamin’s shares were unchanged on the JSE at R10.89 per share on Tuesday afternoon.
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