Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — Q3 2020 Earnings Presentation
17 slides from Alphamin Resources's earnings presentation, November 2020
Slide 1: Investor Presentation – Quarter ended September 2020
Investor Presentation Quarter ended September 2020
Slide 2: Disclaimer
Disclaimer This Investor Presentation (the “Presentation") was prepared as a quarterly performance update and 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 d
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”) and All-In Sustaining Cost (“AISC”). These measures are not recognized under IFRS as
Slide 5: Conference Call Agenda and Speakers
Conference Call Agenda and Speakers AGENDA SPEAKERS ▪ Corporate Overview ▪ Value Proposition ▪ Operational Performance and Outlook ▪ Financial Performance and the Balance Sheet ▪ The Tin Market ▪ Summary Maritz Smith CEO Trevor Faber COO ▪ Q&A Eoin O’Driscoll CFO 5
Slide 6: Corporate Overview
Corporate Overview Corporate Overview Market Statistics September 2020 ▪ One of the world’s highest grade tin mines TSX Venture Exchange (TSXV:AFM) ▪ Lowest quartile cost producer of 4% of the world’s mined tin Equity AltX - Johannesburg Securities Exchange (JSE Listings ▪ Significant resource exten
Slide 7: Value Proposition
Value Proposition One of the ▪ Fewer than five years to move from compliant mineral resource to one of the highest Highest Grade Tin grade tin producers in the world Mines in the ▪ Well established infrastructure with proven export / import routes for finished goods and World(1) raw materials Proven
Slide 8: Operational Performance and Outlook
Operational Performance and Outlook Ore Processed Plant Feed Grade 120 6.0 100 5.0 (‘000 tons) 80 4.0 %Sn 60 3.0 40 2.0 20 1.0 - - Plant Recoveries Tin Produced 74 3 000 72 2 500 70 2 000 tons 68 1 500 % 66 1 000 64 500 62 - 60 Note: NI 43-101 technical report – F2020 parameters divided by four to i
Slide 9: Operational Performance and Outlook
Operational Performance and Outlook Current Mpama North Production Profile(1) 43-101 Tin Production (kt) Incremental Tin From 10% Increase in Plant Throughput (kt) Incremental Tin From Fine Tin Recovery Plant (kt) Incremental Tin Production from Potential Mpama North and South Extension (kt) 14 12 T
Slide 10: Life of Mine Extensions – Mpama North and South
Life of Mine Extensions – Mpama North and South Mpama North – Tin Resource Expansion Mpama South – Tin Resource Definition Current Workings Limit of mineralisation on north side cut-off by drill rig capabilities in 2014 Planned mining area outline in pink Limit of mineralisation on south side define
Slide 11: Life of Mine Extensions – Regional Exploration Targets
Life of Mine Extensions – Regional Exploration Targets Acquire More Data Points and Interpret Against Multiple Sources Planned Soil Geochemistry Re-Assessment ▪ IP/Res study executed in December 2016 ▪ Calibrated results across known mineralization at Mpama North ▪ Oso prospect (700m north of Mpama
Slide 12: Financial Performance and Balance Sheet
Financial Performance and Balance Sheet EBITDA (US$’000)(1) AISC vs Tin Price (US$/t) 17 000 20 000 15 000 15 000 13 000 10 000 11 000 5 000 9 000 7 000 - Q4 2019 Q1 2020 Q2 2020 Q3 2020 5 000 Q4 2019 Q1 2020 Q2 2020 Q3 2020 AISC Tin Price Tin Sales (Sn tons) Working Capital and Net Debt 5 000.0 (US
Slide 13: EBITDA to Cash Reconciliation – 9 months ended September 2020
EBITDA to Cash Reconciliation – 9 months ended September 2020 Non-recurring F2020 events which negatively affected cash conversion: ▪ Repayment of off-take customer advance of US$12.6m received during bridge collapse period in Q4 2019 ▪ Repayment of US$10m in arrear creditors from the capital develo
Slide 14: The Tin Market
The Tin Market The Tin Market is Entering a Growth Period Supported by Applications in New Technologies (2) kt USD/t Metals Most Impacted by New Technologies(1) Deficit Post 2025 550 35 000 Tin Consumption (3-4% CAGR from 2025 forecast by ITA, RHS) 500 30 000 Lithium Cobalt ITA Incentive Price Requi
Slide 15: The Tin Market
The Tin Market 1 2 ▪ LME tin prices have trended at or above US$20,000/t for the last 10 years except for:- 11. Jan ‘15 – Oct ‘16 on fears of a China growth slow down and dollar strength; and 22. May 19 – present commencing with intensification of the US- China trade war impacting the electronics in
Slide 16: Summary
Summary ▪ A lowest quartile cost producer of 4% of the world’s mined tin ▪ Balance sheet and cash flow generation allows for: ▪ Further debt reductions; and ▪ Growth initiatives ▪ Path to production increases by H2 2021 ▪ Drilling campaigns targeting resource extensions ▪ Consideration of a dividend
Slide 17: Q&A
7 / Q&A e Alphamin Resources d Al h a m | n Suite 1, Perrieri Office Suites C2-302, Level 3, Office Block C 7 / RESOURCES La Croisette, Grand Baie, 30517 Mauritius 17