Alphamin Resources (TSXV: AFM)

Last close As at 28/03/2024

CAD0.97

0.03 (3.19%)

Market capitalisation

CAD1,200m

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

Alphamin achieved production of 3,126t in Q423 to generate c US$20.3m in EBITDA, after sales were disrupted by unseasonal rains. Nevertheless, the Mpama South project is moving to expand group production by c 50% (to c 20,000tpa) from Q224, on which basis we calculate a value for Alphamin’s shares of US$1.06 (or C$1.44). However, this increases to as much as US$1.76 (C$2.36) in the event that the company’s exploration programme continues to extend the productive life of operations. Similarly, its peers imply a share price for Alphamin as high as C$2.89.

Latest Insights

View More

Metals & Mining | Initiation

Alphamin Resources — Still leading the pack

Metals & Mining | Update

Alphamin Resources — Mpama South continues the charge

Metals & Mining | Update

Alphamin Resources — Presenting the bull case

Metals & Mining | Update

Alphamin Resources — Underlying results exceed prior forecasts

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Charles Needham

    Non-executive Chairman

  • Eoin O'Driscoll

    CFO

  • Maritz Smith

    CEO

Balance Sheet

Forecast net cash (US$m)

1.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.0 15.5 28.5
Relative 2.0 7.9 13.8
52 week high/low C$1.1/C$0.8

Financials

Alphamin (AFM) offers rare exposure to a metal that both Rio Tinto and the MIT regard as the most likely to benefit from the electrification of the world economy. The company successfully ramped up its Mpama North mine at Bisie in the Democratic Republic of the Congo to full production at a time when the tin price was enjoying one of its biggest bull markets in decades, allowing it to pay off debt and to start making distributions to shareholders.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 391.1 222.2 188.0 7.86 9.1 4.9
2023A 288.5 135.5 94.7 3.68 19.4 457.2
2024E 477.7 241.5 199.3 9.14 7.8 4.1
2025E N/A N/A N/A N/A N/A N/A

Research

Update

Metals & Mining

Alphamin Resources — Roaring back

Update

Metals & Mining

Alphamin Resources — Results confirm long-term potential

Initiation

Metals & Mining

Alphamin Resources — Alpha tin actually

QuickView

Metals & Mining

Alphamin Resources — New tin producer generating cash flow

Thematics

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