Alphamin Resources Corp (AFMJF)

[nowwhat2]

Strategic Review Update - July 5 2022 https://alphaminresources.com/2022/07/05/alphamin-announces-record-quarterly-tin-production-q2-2022-ebitda-guidance-of-us66-5m-dividend-declared/

On 9 November 2021, the Company announced the initiation of a strategic review to explore alternatives such as fast-tracking the Company’s expansion and life-of-mine extension potential, balance sheet restructuring including revenue prepayments and streaming, shareholder distributions or a corporate merger or sale transaction.

The Company wishes to update shareholders and other market participants on this initiative:

Exploration drilling doubled from Q4 2021 to a quarterly average of over 12,000 metres and delivered an additional 124,700t contained tin in inferred Resource and 21,400t contained tin in indicated Resource at Mpama South. In addition, multiple high-grade tin intercepts were reported from drilling at depth at Mpama North.
Mine development of the adjacent Mpama South deposit commenced, which is expected to increase annual contained tin production from the current 12,000tpa to ~20,000tpa, approximating 6.6% of the world’s mined tin, effective FY2024.


Dividend distributions commenced in February 2022 (Final FY2021 dividend) and net cash increased from US$1m to US$138m during the 9 months ended June 2022. A strong balance sheet to support growth initiatives whilst achieving high dividend returns to shareholders is considered a robust value proposition.


The Company is of the opinion that global tin supply is likely to remain constrained for at least the next five years while demand for tin is expected to increase. In addition to the development of Mpama South, the Company’s vision is to discover more tin deposits on its license areas with a view to deliver additional mine developments and incrementally increase tin supply into an expected widening market deficit.


At this point in time, the Company believes that an outright sale transaction would not deliver the future value it intends to unlock through ongoing resource development and production growth.


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JULY 26

Interim FY2022 Dividend Declared

On 5 July 2022, the Board resolved to declare an interim FY2022 cash dividend of CAD$0.03 per share on the common shares (approximately US$30m in the aggregate) (the “Dividend”). The Dividend will be payable on 5 August 2022 to shareholders of record as of the close of business on 29 July 2022.
Dividend distributions will be considered semi-annually based on excess free cash after taking account of capital funding requirements, including for the new Mpama South expansion project.











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