Alphamin flags record profit as metal prices soar

Alphamin Resources, which mines tin in the northeastern Democratic Republic of the Congo, has flagged a rise in core profit of almost a third to a record $98m (R1.43bn) for its first quarter to end-March, continuing to cash in on soaring metal prices.

Alphamin, which has a primary listing in Toronto, mines about 4% of the world’s tin, saying in an update on Tuesday ore processed fell 2% quarter on quarter to 105,565 tonnes to end-March, though prices rose 14% to $43,813 per tonne.  

The group has a secondary listing on the JSE’s AltX, where it is valued at about R18bn. Its Mpama North mine is the world’s highest-grade tin resource, with the group saying it is about four times higher than most other operating tin mines.

Tin is primarily used for soldering circuit boards, but demand in coming years is expected to be sustained due to demand in evolving technologies, including energy storage and vehicle batteries, according to a report from market research firm Mordor Intelligence.

Tin prices had soared in 2021 amid a recovery in industrial demand and production constraints in the world’s largest producer, China, which had faced an energy crunch and environmental crackdowns by authorities.

Strong demand, concern over inventories, and Russia’s invasion of Ukraine have resulted in a surge in the prices of many industrial metals in 2022, and tin hit a record of $48,650 a tonne in early March, with prices on the London Metal Exchange since easing to about $45,500.

Alphamin’s share price closed 1.14% higher at R14.25 on Tuesday, having risen more than five-fold over the past two years.

gernetzkyk@businesslive.co.za