Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — Non-Deal Roadshow (May 2024)
33 slides from Alphamin Resources's roadshow presentation, May 2024
Slide 1: Investor Presentation BMO Roadshow May 2024
TSXV：AFM JSE Altx：APH INVESTOR PRESENTATION BMO Roadshow 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 29 April 2024 Bisie tin mine located in the resource rich Democratic Republic of Congo (DRC) Share price C$1.21 Low-cost tin producer with a track record of resource and production growth Market capitalization C$1.5bn (US$1.1bn) Recent e
Slide 6: Track Record of Success
TRACK RECORD OF SUCCESS Exploration to initial production in less than 6 years. ~2 years from discovering the second tin deposit to completing an expansion targeting a ~55% tin production increase Expansion completion Tin Tin Tin Tin Production of imminent - targeted Commercial Production of Product
Slide 7: Value Proposition
VALUE PROPOSITION The mineral most impacted by new technology1 The forgotten critical metal for solar roll-outs and billions of tin contained connection points on the back of Pure Tin Play exploding data traffic, computing and storage devices and infrastructure New supply unlikely to meet dema
Slide 8: Realising the Goal
REALISING THE GOAL Capital allocation in balance 1. Mpama North the cornerstone Gearing Operational excellence and continuous improvements Gearing • Debt capacity Steady 12,500tpa tin; Competitive AISC/t • Cash reserves Cash flow generation Balanced stakeholder distribution Social license
Slide 9: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ Fine Tin Plant; Higher ROM (t) & development meters (m) Processing Grade (%) & Recovery (%) recoveries with Higher grade – Sn throughput increases Mining method; FLOW limited to plant 440,000 capacity 10,200 4.3% 76% 420,000 9,200 4.0% 75% 400,000 8,200 75% 3.7%
Slide 10: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ AISC vs tin price (US$/t) EBITDA (US$’000) 16,000 33,000 250,000 15,000 30,000 14,000 200,000 13,000 27,000 150,000 US$/tonne US$/tonne US$’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 2024 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 2024 12
Slide 13: Mpama South – Underground Operational, Plant in Final Commissioning
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 – Second Processing Plant Nearing Commissioning
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant nearing final commissioning Run-of-mine stockpile ahead of the crushers Crushed ore stockpile ahead of the jigging plant ©Alphamin 2024 15
Slide 16: Mpama South – Second Processing Plant Nearing Commissioning
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant nearing final commissioning Crushed ore screening and jigging area Gravity plant, thickener area, fine tin plant and final product house ©Alphamin 2024 16
Slide 17: Mpama South – Second Processing Plant Nearing Commissioning
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant nearing final commissioning Crushed ore processed in the jigging plant ©Alphamin 2024 17
Slide 18: Mpama South – Second Processing Plant Nearing Commissioning
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant nearing final commissioning Gravity house - Shaking tables and spirals processing jig concentrate ©Alphamin 2024 18
Slide 19: Mpama South – Underground Development Connecting Mpama North and South
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 2024 19
Slide 20: Updated Resources and Life of Mine Plan – Tin Deposits 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 167.3 154.2 36.2 154.5 Contained tin in Resources (kt) 250 5.5
Slide 21: 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 22: Tin Market – Demand Landscape
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 23: Tin Market – Demand Landscape: Solar
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand landscape – Solar Traditional uses for Tin taking a back seat – A new age for tin in solar, EV’s, AI and IoT Global solar roll-out on a steep growth path Every 100GW installed requires ~7,400t tin³ 2022(actual): 268GW4 installed require
Slide 24: Tin Market – Demand Landscape: Electronics
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand landscape – Electronics The Artificial Intelligence Reality Semiconductors and the Tin Market Reality “AI is the most disruptive force in history” – Elon Musk Tin price linkages to semiconductor sales are strong The AI market will superse
Slide 25: Tin Market – Demand Landscape: Electronics
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Demand landscape – Electronics The semiconductor market is evolving The future is uncertain, but the data it supports isn’t Equipment redundancy is reached every 4 – 6 years A byte of data will pass thousands of tin solder joints to its endpoi
Slide 26: Tin Market – Demand Landscape: AI, Networking, 5G, EVs
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL Annual Tin demand expected to grow Demand landscape – AI, networking and 5G, data storage and EV’s from 395kt currently to over 500kt by Traditional uses for Tin taking a back seat – A new age for tin in solar, EV’s, AI and IoT 20303 Electric Vehi
Slide 27: Tin Market – 2024 Demand Landscape
TIN MARKET – THE FORGOTTEN CRITICAL TECHNOLOGY METAL 2024 Demand landscape 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 demand up by 4.
Slide 28: Tin Market – Supply Landscape
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Supply landscape Major producing regions under threat from Government, Social and Technical pressures Global mined supply is under pressure Four countries historically produced 70-80% of global tin concentrate¹ - not anymore China mined tin outp
Slide 29: Tin Market – Supply Landscape: China Net Importer
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 30: Tin Market – Supply Landscape: Cost Curve
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 31: Tin Price Resilience Relative to Battery Metals and Copper
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Tin price showing resilience relative to battery metals and copper…. Base Metal Price Index (Jan 2020 = 100pts) Tin Nickel Copper Zinc Cobalt 275 250 225 200 175 Tin 150 Copper Nickel 125 Zinc 100 Cobalt 75 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-2
Slide 32: 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 33: Thank You
TSXV：AFM JSE Altx：APH THANK YOU Questions?