Alphamin Resources

CN: AFM

Market CapC$774.2m

Last Close C$0.65

Alphamin Resources owns (84.14%) and operates the Mpama North tin mine in the North Kivu province of the DRC with a grade of c 4.5% Sn (the world’s highest). Accounting for c 4% of the world’s mined supply, it is the second largest tin mine in the world outside China and Indonesia.

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Investment summary

Alphamin offers rare exposure to immediate positive cash flow from a metal that both Rio Tinto and MIT regard as being the most likely to benefit from the widespread electrification of the world economy. Fortuitously, its Bisie tin mine in the north-eastern DRC is hitting its stride at just the moment that the tin price is experiencing its biggest squeeze in decades, providing it with a golden opportunity to repay debt and even consider making distributions to shareholders as early as next year.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 27.2 8.5 (5.8) 0.8 67.2 N/A
2020A 187.4 58.3 15.7 (1.1) N/A 31.5
2021E 318.0 180.7 148.6 8.9 6.0 5.9
2022E 271.0 140.9 114.9 7.4 7.3 5.4
Industry outlook

At the current tin price of US$29,815/t, we estimate a value for Alphamin of 61.5 US (or 74.3 Canadian) cents per share. At a long-term tin price of US$23,425/t, we estimate a value for Alphamin of 42.4 US (or 51.2 Canadian) cents per share. However, this rises to as high as C$1.162/share in the event that exploration expands and/or extends the life of operations (see 12 March and 14 May exploration updates). NB Q121 results were absolutely consistent with these expectations.

Last updated on 21/06/2021
Content on Alphamin Resources
Alphamin Resources – Results confirm long-term potential
Metals & mining | Update | 17 May 2021
20201118_122516
Alphamin Resources – Alpha tin actually
Metals & mining | Initiation | 16 March 2021
20201118_122516
Alphamin Resources – New tin producer generating cash flow
Metals & mining | QuickView | 24 November 2020
Edison QuickView
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 45.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (11.0) 3.2 293.9
Relative* (13.7) (3.5) 202.4
52-week high/low C$0.8/C$0.1
*% relative to local index
Key management
Maritz Smith CEO
Eoin O'Driscoll CFO
Boris Kamstra Executive director