Mr. Maritz Smith reports

ALPHAMIN ANNOUNCES RECORD Q2 TIN PRODUCTION OF 4,027 TONNES, UP 28%

Alphamin Resources Corp. has provided the following update for the quarter ended June, 2024:

• Record tin production of 4,027 tonnes, up 28 per cent from the prior quarter;
• Tin sales of 3,245 tonnes, with increased tin stocks from the expansion expected to clear in Q3;
• EBITDA (earnings before interest, taxes, depreciation and amortization) guidance of $54.2-million (U.S.), up 4 per cent from the prior quarter.

Operational and financial performance

The new Mpama South processing facility has been producing tin concentrate to sales specification since May 14, 2024, and achieved commercial production on May 17, 2024. Accordingly, AISC (all-in sustaining cost) and EBITDA includes Mpama South from May 17, 2024. Tin sales lagged production, resulting in a limited contribution from the expansion to EBITDA during the quarter. AISC guidance of $15,576 (U.S.) per tonne is inclusive of the incremental Mpama South production costs; the quarter-over-quarter increase in AISC is as a result of the impact of the higher tin price on royalties, export charges, net smelter returns and marketing fees.

Contained tin production of 4,027 tonnes for the quarter ended June, 2024, was 28 per cent above the prior period. This increase is a result of the Mpama South expansion. With only half of the quarter benefiting from the expansion, Alphamin expects Q3 to deliver a further increase in tin production.

Due to the expansion from mid-May, 2024, ore processed increased by 52 per cent to 166,675 tonnes and the tin grade of the feed ore reduced to 3.2 per cent. This is in line with expectations as the expansion targets a doubling of processing volumes and a reduction in the overall tin grade to approximately 3 per cent.

The Mpama South facility was originally targeted to produce at a metallurgical recovery of 70 per cent on the basis of a 2-per-cent-tin feed grade, which should result in a combined recovery of approximately 73 per cent going forward. The new plant outperformed during Q2 and achieved recoveries in excess of 70 per cent at an average feed grade of 2.2 per cent.

Tin sales decreased by 21 per cent to 3,245 tonnes -- the comparative quarter recorded exceptionally high sales volumes as the quarter cleared the backlog from low Q4 2023 sales due to poor road conditions. The current quarter's delay in tin sales should clear during Q3 2024.

EBITDA for Q2 2024 is estimated at $54.2-million (U.S.) (Q1 2024: $52.1-million (U.S.)). The EBITDA variance compared with the prior quarter was impacted by a 21-per-cent reduction in tin sales volumes and benefited from a positive tin price variance of 20 per cent. The additional tin production from the expansion should translate into higher sales volumes from Q3 2024 and accordingly contribute to EBITDA. The lag in tin sales compared with production in Q2 2024 impacted EBITDA by approximately $15-million (U.S.).

Alphamin's unaudited consolidated financial statements and accompanying management discussion and analysis for the quarter ended June 30, 2024, are expected to be released on or about Aug. 23, 2024.

Qualified person

Clive Brown, PrEng, BSc (engineering (mining)), is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release. He is a principal consultant and director of Bara Consulting Pty. Ltd., an independent technical consultant to the company.

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