GRAND BAIE, Mauritius, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, “Alphamin”, or the “Company”) is pleased to announce its production and sales report for the quarter ended September 30, 2019.
- Tin production up 269% over prior quarter to 2,345 tons contained
- Plant performance up 50% over the prior quarter and overall recoveries improved to 65% during the months of August and September 2019 (target of ~72%)
- Excellent safety performance with zero lost time injuries during the quarter
- Flexibility to debt repayment profile secured
This news release relates to the performance of Alphamin’s 80,75% subsidiary, Alphamin Bisie Mining SA (“ABM”). Alphamin’s Q3-2019 Management’s Discussion and Analysis and consolidated financial statements are expected to be released on or about 31 October 2019.
Production and sales report
The following table sets forth selective operational information for the quarter ended September 2019:
|Quarter ended September 2019||Quarter ended June 2019*||Variance|
|Tons processed||Tons||74 427||36 336||105||%|
|Tin grade||% Sn||5,6||4,7||21||%|
|Overall plant recovery||%||56||37||50||%|
|Payable tin produced||Tons||2 345||636||269||%|
|Payable tin sold||Tons||1 373||157||775||%|
* Early stages of project commissioning and ramp-up
Contained tin production increased to 2,345 tons for the current quarter, reflecting improved plant recoveries and higher tin grades from underground. Plant recoveries averaged 65% during the months of August and September 2019 against design levels of approximately 72%. Tin grades mined and processed increased in the quarter to an average 5,6% Sn, which is expected to taper off to between 4% and 5% Sn during Q4 2019. We expect contained tin production of between 2,000 tons and 2,200 tons for the quarter ending December 2019.
Outbound road conditions necessitated the procurement of additional outsourced trucks in order to significantly reduce the current tin concentrate stockpile on-mine. We expect much improved tin concentrate sales during Q4 2019.
Debt obligations and update:
Commercial production was achieved during Q3 2019. The Company’s lenders consortium has agreed in principle, subject to a formal amendment to the credit facility, to:
- Remove the requirement to fund a Debt Service Reserve Account for application towards the next debt capital instalment, which would have absorbed approximately US$1.3 million per month from commercial production to March 2020 increasing to US$2.7 million per month thereafter;
- Monthly servicing of interest due on the credit facility (approximately US$1.3 million) is now scheduled to commence end November 2019 (previously from the commencement of commercial production);
- Alphamin has the option to elect to defer the current quarterly debt capital repayments (which commence end March 2020) to a monthly capital repayment schedule (over 36 months) commencing July 2020 (“the Option”)
These proposed amendments to the credit facility offer Alphamin the flexibility to better manage its ongoing treasury requirements by defering up to US$16 million in debt capital repayments during the 2020 financial year, should the need arise.
For the above amendments to the credit agreement, if implemented, Alphamin will be required to pay an upfront restructuring fee of US$400,000 payable in cash. Should Alphamin exercise the Option during 2020, then a further fee of US$400,000 would be required, payable in cash.
FOR MORE INFORMATION, PLEASE CONTACT:
Alphamin Resources Corp.
Tel: +230 269 4166
Gabriella Von Ille
Tel: +27 11 268 5781
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements contained herein include, without limitation, statements relating to tin grades, costs of production, production and sales volumes and the anticipated entering into of credit facility amendments. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although Alphamin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: Uncertainties associated with Alphamin’s resource and reserve estimates, uncertainties regarding the entering into of anticipated amendments to the current debt facility, mining risks, risks relating to foreign operations, uncertainty of cost and production estimates, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties with respect to social, community and environmental impacts, adverse political events, uncertainties with respect to optimization opportunities for the Project, as well as those risk factors set out in the Company’s Management Discussion and Analysis and other disclosure documents available under the Company’s profile at www.sedar.com. Forward-looking statements contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.