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Currency in CAD
Last close As at 25/03/2023
CAD0.76
▲ −0.01 (−1.30%)
Market capitalisation
CAD981m
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.
Following record quarterly EBITDA in Q122 and record quarterly production in Q2, AFM exceeded its market guidance for tin production in both Q322 and Q422 at 3,139t and 3,113t cf 3,000t respectively. This takes FY22 production to 12,493t, up 14% on FY21. The Mpama South project also moves towards production of 7,200t in FY24, increasing annual production to ~20,000t. We consider the valuation of AFM could reach US$1.98/share (C$2.49/share) in the event of its exploration programme successfully extending the life of operations.
Metals & Mining
Metals & Mining
Metals & Mining
Metals & Mining
Director, Energy & Resources
Charles Needham
Non-executive Chairman
Eoin O'Driscoll
CFO
Maritz Smith
CEO
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (19.2) | 5.6 | (32.7) |
| Relative | (16.4) | 4.6 | (24.0) |
| 52 week high/low | C$1.4/C$0.6 |
Alphamin Resources (AFM) offers rare exposure to a metal that both Rio Tinto and MIT regard as the most likely to benefit from the electrification of the world economy. Having successfully ramped up its Mpama North mine at Bisie in the Democratic Republic of the Congo to full production at a time when the tin price was simultaneously enjoying one of its biggest bull markets in decades, AFM is already net debt free and making distributions to shareholders.
| Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 187.4 | 58.3 | 15.7 | (0.71) | N/A | 34.5 |
| 2021A | 352.9 | 194.9 | 159.0 | 3.75 | 15.7 | 5.0 |
| 2022E | 519.6 | 350.2 | 315.1 | 11.73 | 5.0 | 2.6 |
| 2023E | 541.7 | 369.7 | 328.1 | 14.99 | 3.9 | 3.6 |
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