Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — Investor Presentation (May 2024)
31 slides from Alphamin Resources's investor presentation, May 28, 2024
Slide 1: Investor Presentation – Amvest Webinar
TSXV：AFM JSE Altx：APH INVESTOR PRESENTATION Amvest Webinar 28 May 2024
Slide 2: Disclaimer
DISCLAIMER This Investor Presentation (the “Presentation") was prepared as a summary overview only of the current affairs of Alphamin Resources Corp. (”Alphamin" or the “Company") and was not prepared for the purpose of assisting prospective investors in making a decision to invest in Alphamin. Alph
Slide 3: Disclaimer
DISCLAIMER Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those express
Slide 4: Disclaimer – Use of Non-IFRS Financial Performance Measures
DISCLAIMER USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES This Presentation refers to the following non-IFRS financial performance measures: Earnings before interest, taxes, depreciation and amortization (“EBITDA”), All-In Sustaining Cost (“AISC”), Net Debt and Net Cash. These measures are not recog
Slide 5: Corporate Overview
CORPORATE OVERVIEW Company overview Market statistics at 27 May 2024 Bisie tin mine located in the resource rich Democratic Republic of Congo (DRC) Share price C$1.13 Low-cost tin producer with a track record of resource and production growth Market capitalization C$1.4bn (US$1.1bn) Recent exp
Slide 6: Track Record of Success
TRACK RECORD OF SUCCESS Exploration to initial production in less than 6 years. ~2 years from discovering the second tin deposit to completing an expansion targeting a ~55% tin production increase Expansion completed - Tin Tin Tin Tin Production of targeted +50% tin Commercial Production of Producti
Slide 7: Value Proposition
VALUE PROPOSITION ▪ The mineral most impacted by new technology1 ▪ The forgotten critical metal for solar roll-outs and billions of tin contained connection points on the back of Pure Tin Play exploding data traffic, computing and storage devices and infrastructure ▪ New supply unlikely to meet dema
Slide 8: Realising the Goal
REALISING THE GOAL Capital allocation in balance 1. Mpama North the cornerstone Gearing Operational excellence and continuous improvements • Debt Gearing capacity Steady 12,500tpa tin; Competitive AISC/t • Cash reserves Cash flow generation Balanced stakeholder distribution Social license
Slide 9: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ Fine Tin Plant; Higher ROM (t) & development meters (m) Processing Grade (%) & Recovery (%) recoveries with Higher grade – Sn throughput increases Mining method; FLOW limited to plant 440 000 capacity 10 200 4,3% 76% 420 000 9 200 4,0% 75% 400 000 8 200 75% 3,7%
Slide 10: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ AISC vs tin price (US$/t) EBITDA (US$’000) 16 000 33 000 250 000 15 000 30 000 14 000 200 000 13 000 27 000 US$/tonne US$/tonne 150 000 US$’000 12 000 24 000 11 000 100 000 21 000 10 000 50 000 9 000 18 000 8 000 15 000 0 2020 2021 2022 2023 Q1 2024 2020 2021 202
Slide 11: Cash Flow Waterfall – Year Ended December 2023
CASH FLOW WATERFALL – YEAR ENDED DECEMBER 2023¹ Major expansion expenditure. Dividends maintained. Large final tax payments for 2022 and prepayments towards 2024. (1) Information from FY2023 MD&A and financial statements ©Alphamin 2023 11
Slide 12: Cash Flow Waterfall – Quarter Ended March 2024
CASH FLOW WATERFALL – QUARTER ENDED MARCH 2024¹ Q1 2024 sales volumes increased EBITDA and released working capital. (1) Information from Q1 2024 MD&A and financial statements ©Alphamin 2023 12
Slide 13: Mpama South – Underground Operational. Plant in Final Commissioning Stage
MPAMA SOUTH – UNDERGROUND OPERATIONAL. PLANT IN FINAL COMMISSIONING STAGE. Anticipating a +50% increase in annual tin production to ~20,000 tonnes Scale pulling fixed cost structure into balance Marginal cost of volume increase should translate into a competitive AISC per tonne of additional tin
Slide 14: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Fast-tracked implementation – ~2 years from maiden resource to project completion February 2022: Maiden resource at Mpama South February 2022: Preliminary Economic Assessment completed and announced March 2022: Updated Mpama South resource increasing
Slide 15: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant completed and producing Run-of-mine stockpile ahead of the crushers Crushed ore stockpile ahead of the jigging plant ©Alphamin 2023 15
Slide 16: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant completed and producing Crushed ore screening and jigging area Gravity plant, thickener area, fine tin plant and final product house ©Alphamin 2023 16
Slide 17: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant completed and producing Crushed ore processed in the jigging plant ©Alphamin 2023 17
Slide 18: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant completed and producing Gravity house - Shaking tables and spirals processing jig concentrate ©Alphamin 2023 18
Slide 19: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant completed and producing Concentrate shed – Horizontal belt filter with concentrate; Concentrate drier, bagging plant and Mpama South concentrate product ©Alphamin 2023 19
Slide 20: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Underground development – connecting Mpama North and Mpama South as one producing unit feeding two processing facilities 100m ©Alphamin 2023 20
Slide 21: Updated Resources and Life of Mine Plan – Tin Deposits Are Open at Depth
UPDATED RESOURCES AND LIFE OF MINE PLAN – TIN DEPOSITS ARE OPEN AT DEPTH High impact exploration added ~175,000t contained tin from an 18-month drilling campaign Resources – Mpama North Mine Life of mine scheduled tin – Mpama North Mine 167.3 Contained tin in Resources (kt) Contained tin in LoM Plan
Slide 22: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand landscape ¹ ² Traditional uses for Tin taking a back seat – A new age for tin in solar, AI and IoT Metals most impacted by new technologies³ Recent % Application Tin use (t) of total Landscape view Solar 19 051 5% Snowball effect in demand
Slide 23: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand landscape New age applications doubles Tin demand 2020 – 20401 Decarbonisation and Digital Advancements revolutionising the 21st century Energy Transition: Solar PV accounts for 4.5% of global generated energy in 2022 2 Solar Market Sha
Slide 24: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand Outlook/ Supply Constraints Extract from the International Tin Association China Tin Industry Review 2023: “…the continued recovery in the semiconductor industry and slowing yet still high growth in new energy sectors will push world tin de
Slide 25: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Supply landscape – from easy alluvial mining to overweight hard rock mining ©Alphamin 2023 25
Slide 26: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Supply landscape – China is a growing net tin importer but has constrained tin mining In 2023, China imported an estimated 40,600t of contained tin in ores/concentrates from Myanmar, a decrease of 7,100t or 15% from 2022. (1) Information from the
Slide 27: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Supply landscape It is all about Indonesia, Myanmar and the cost curve Global Cost Curve under pressure¹ Inconsistent reporting of producers’ costs – likely understated Cost of energy, inflation and difficult mining in Indonesia and Myanmar pu
Slide 28: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Tin market fundamentals setting the scene for the next bull market Explosion in tin demand for solar, AI (computing and data storage) and networking (5G and AI impact) Indonesia and Myanmar supply threats (28% of global tin market) - Technical
Slide 29: Tin Market – The Forgotten Critical Technology Metal
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Tin price showing resilience relative to battery metals and copper…. While the world is becoming more dependent on tin to realise its technological ambitions, Alphamin is uniquely positioned to benefit from its low-cost and growing tin production
Slide 30: Our Social License to Operate
OUR SOCIAL LICENSE TO OPERATE Investing in our communities Reach Area of influence – Social Commitment Register in terms of the Mining Code • Social Commitment Register - 28 villages - 7,658 households (average size ~6 people) - 45,921 people • Additional community impact and projects via the Lowa A
Slide 31: Thank You
TSXV：AFM JSE Altx：APH THANK YOU Questions?
Alphamin Resources — Investor Presentation (May 2024) on 6ix