Alphamin Resources Corp. · TSXV:AFM
Alphamin Resources — BMO Roadshow (June 2023)
26 slides from Alphamin Resources's conference presentation, Jun 19, 2023
Slide 1: Investor Presentation – BMO Roadshow
TSXV：AFM JSE Altx：APH INVESTOR PRESENTATION BMO Roadshow 19 June 2023
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 14 June 2023 Bisie tin mine located in the resource rich Democratic Republic of Congo (DRC) Share price C$0.87 Currently producing 4% of the world’s mined tin² Market capitalization C$1.1bn (US$0,8bn) Low-cost producer with significant r
Slide 6: Key Milestones Achieved
KEY MILESTONES ACHIEVED Exploration to production in less than 6 years – now fast-tracking production expansion and resource extensions 2021 EBITDA 2022 EBITDA US$200m US$222m Production Secured project Commercial Production Production of expansion to Anchor investors finance and production of 11,00
Slide 7: Value Proposition
VALUE PROPOSITION ▪ The mineral most impacted by new technology1 Pure Tin Play ▪ The forgotten critical mineral for solar roll-outs and AI – exploding demand growth ▪ New supply unlikely to meet demand growth ▪ Produces ~12,500tpa Sn, 4% of the world’s mined tin2 – second largest outside China and I
Slide 8: Realising the Goal
REALISING THE GOAL Capital allocation in balance Gearing 1. Mpama North the cornerstone Operational excellence and continuous • Limited debt improvements • Unutilised Gearingdebt Steady 12,500tpa tin; Competitive AISC/t capacity • Cash reserves Cash flow generation Balanced stakeholder distr
Slide 9: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ Fine Tin Plant; Higher ROM (t) & development meters (m) Grade (%) & recovery (%) recoveries with throughput increases 460 000 Mining method; FLOW 5 700 4,0% 75% 75% 440 000 5 200 3,7% 74% Recovery % 420 000 4 700 3,4% 73% Grade % Tonnes Meters 400 000 4 200 3,1%
Slide 10: Financial and Operating Performance
FINANCIAL AND OPERATING PERFORMANCE¹ AISC vs tin price (US$/t) EBITDA (US$’000) 15 000 33 000 250 000 14 000 30 000 200 000 13 000 27 000 US$/tonne US$/tonne 12 000 150 000 US$’000 24 000 11 000 100 000 10 000 21 000 18 000 50 000 9 000 8 000 15 000 0 2020 2021 2022 Q1 2023 2020 2021 2022 Q1 2023 AI
Slide 11: Cash Flow Allocation – FY2022
CASH FLOW ALLOCATION – FY2022¹ We achieved our capital allocation objectives. Dynamic. 2022 US$222m EBITDA Allocation Sustaining capex Other 5% 2% Income tax 22% Treasury 14% Growth 25% Dividends 32% (1) Information from MD&A market releases and FY2022 financial statements ©Alphamin 2023 11
Slide 12: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Targeting an increase in annual tin production from 12,500t to ~20,000t from FY2024 Current mineral resource estimate for Mpama South – February 2023 Tonnes (m) Sn% Sn tonnes Classification Indicated 3.26 2.46 80,200 Inferred 2.84 2.42 68,700 Preliminary e
Slide 13: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH The goal – increasing annual tin production by 60% to ~20,000 tonnes from FY2024 Scale pulling fixed cost structure into balance Marginal cost of volume increase should translate into a competitive AISC per tonne of additional tin Ability to feed a b
Slide 14: Mpama South – Next Step to Realising Growth
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Fast-tracked implementation – Less than two years from maiden resource to planned commissioning February 2022: Maiden resource at Mpama South February 2022: Preliminary Economic Assessment completed and announced March 2022: Updated Mpama South resou
Slide 15: Mpama South – Second Processing Plant and New Mine Portal
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Second processing plant and new mine portal ©Alphamin 2023 15
Slide 16: Mpama South – Underground Development
MPAMA SOUTH – NEXT STEP TO REALISING GROWTH Underground development – connecting Mpama North and Mpama South Decline development Mpama South Adit Level 8/9 development to Mpama South N ©Alphamin 2023 16
Slide 17: High Impact Exploration
HIGH IMPACT EXPLORATION Alphamin owns the highest-grade tin mine in the world High impact exploration added ~175,000t contained tin during the last 18 months – in search of the third tin mine 6,0 Global tin resources (CRIRSCO compliant)¹ Mpama North2 5,5 5,5 5,0 5,0 Mpama North 4,5 4,5 Alphamin Comb
Slide 18: Updated Resources and Life of Mine Plan
UPDATED RESOURCES AND LIFE OF MINE PLAN Mpama North – mineable tin replenished from exploration drilling Mpama South – increased resource remains open-ended Resources – Mpama North Mine Life of mine scheduled tin – Mpama North Mine 167.3 Contained tin in Resources (kt) Contained tin in LoM Plan (kt)
Slide 19: Tin Market – Demand Landscape
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 20: Tin Market – Demand Landscape: Solar
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Demand landscape – solar Traditional uses for Tin taking a back seat – A new age for tin in solar, AI and IoT Global solar roll-out on a steep growth path Every 100GW installed requires ~6,000t tin³ 2022(actual): 268GW4 installed requiring ~16
Slide 21: Tin Market – Demand: AI, Networking, Data Storage and EVs
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Demand landscape – AI, networking and 5G, data storage and EV’s Traditional uses for Tin taking a back seat – A new age for tin in solar, AI and IoT Artificial Intelligence (AI) and super computing Computing and data storage – recent forecasts o
Slide 22: Tin Market – Supply Landscape
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL Supply landscape Major producing regions under pressure Four countries produce 73% of global tin concentrate¹ China’s mined tin output flat last 10 years – struggle for stability¹ Indonesian on-shore mining declining and export restrictions lo
Slide 23: Tin Market – Supply Landscape and 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 24: But What About the Price of Tin?
TIN MARKET – THE FORGOTTON CRITICAL TECHNOLOGY METAL But what about the price of tin? Small market, high volatility trump fundamentals in the short-term Impact of China’s zero-covid policy and higher stock levels should phase out in the next months Fundamentals will prevail in the medium term.
Slide 25: 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 26: Thank You
TSXV：AFM JSE Altx：APH THANK YOU Questions?