Alphamin Tin Output Drops 18% Due to DRC Conflict Threats

Alphamin Resources Corp

Operations disrupted as insurgents advance; production guidance cut by 12.5% for FY2025

Alphamin Resources Corp., a key global producer of high-grade tin concentrate, reported an 18% quarter-on-quarter drop in output from its Bisie mine in the Democratic Republic of Congo (DRC) during Q1 2025. The production dip follows a temporary operational halt on March 13 triggered by advancing insurgents in eastern DRC.

Contained tin output for the quarter ended March 31 totaled 4,270 tonnes, down from 5,237 tonnes in Q4 2024. Although the average tin grade rose 18% to 3.55%, Alphamin opted to slow throughput to optimize plant recoveries, which reached 75%, exceeding the 73% target.

Security Risks Trigger Halt, Force Guidance Cut

The cessation followed insurgent seizures of Goma and Bukavu, key provincial capitals, with forces reaching within 110 km of the mine. On March 20, Walikale, a nearby town, was occupied. Mining operations resumed in April after the threat receded, but the 2025 production forecast has been reduced from 20,000 t to 17,500 t due to lost operational time.

Despite resuming full production by late April, Alphamin’s board withheld a final FY2024 dividend, citing prudent financial management in light of geopolitical uncertainties.

Financial Impact: Higher Costs, Lower EBITDA

• Q1 AISC rose 8% to $16,279/t, up from $15,034/t in Q4, reflecting ongoing costs during the shutdown.
• EBITDA fell 18% to $61.8 million for the quarter.
• Sales lagged production: 3,863 t sold vs. 4,270 t produced, with most post-quarter sales completed by May 13.

At quarter-end, the company held $72 million in cash, with $65 million in receivables. By May 12, cash rose to $74 million post-payment of a $38 million DRC tax and a $15 million overdraft reduction. Exports resumed May 9.

The company’s $50 million prepayment facility with Gerald Metals remains untapped but is expected to activate in Q2. The overdraft facility has been renewed for 12 months with an intent to reduce the drawn balance to $25 million by May 31.

Outlook: Monitoring Security as Ramp-Up Continues

Alphamin emphasized that operations have normalized, with full staffing and steady underground production. However, the risk of renewed conflict disruption remains high, and the company is maintaining close surveillance of regional developments.