AMN - DRC: 19 per cent lift in ROM material processed at Bisie

Alphamin Resources achieved a 19 per cent increase in run-of-mine material processed at the Bisie Tin Mine during the March quarter. This was the result of a new mining method along with the commissioning of two new remote-controlled LHD (load, haul, dump) machines during February 2020.

The new LHDs enabled Alphamin to improve underground loading capacity.

Contained tin production during the quarter of 2119 tonnes was at the mid-point of the company's previous market guidance and just 5% lower than the December 2019 production of 2235 tonnes.

Tin grades are variable depending on where mining is taking place and tapered off to 3.5% tin during Q1 2020, in line with expectations. Underground grades are expected to average 4.0% tin during the June quarter.

The overall plant recovery of 71% was in line with target and 11% above the previous quarter's 64%.

Payable tin sales of 3286 tonnes exceeded production as the company reduced the on-mine concentrate stockpile during the months of February and March 2020 following the repair of the collapsed bridge on the main access highway which was opened to traffic on January 25, 2020.

The mine also continued with its excellent safety record with zero lost-time injuries recorded during the quarter.

Alphamin expects contained tin production of between 2,400 and 2,600 tonnes for the quarter ending June 30, 2020 based upon run-of-mine tin grades planned at 4.0% tin and overall plant recoveries at 72%.

The health of employees is of paramount importance and in this regard the company has a range of COVID-19 awareness, prevention and other risk mitigation controls in place.

The COVID-19 crisis has seen global disruptions to supply chains and to date, the company has been able to continue with normal production and concentrate sales activities.

The main border crossings relevant to in and outbound activities are still open to freight movement and the concentrate offtake customer is able to send product to at least one tin smelter.

The situation remains dynamic and any issue impacting critical flow in the supply chain or that would restrict operations or the availability of the company’s workforce may negatively affect production and sales activities. During this challenging time, it is important that the company continues producing and selling tin concentrates for the benefit of all stakeholders, particularly the economy and people of the North-Kivu province, DRC.

COVID-19 is having a negative impact on global commodity prices. The LME tin price is ranging between US$13,500 and US$14,500 per tonne compared to the company’s recent NI 43-101 Technical Report which assumed a price of US$17,000.

From a liquidity perspective and basis current production rates, this current tin price range supports ongoing production and sales costs together with debt interest payments but higher tin prices will be required to meet additional monthly debt capital repayments scheduled to commence on July 31, 2020. The company continues to focus on achieving its full production targets at the lowest possible unit cost.

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