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Be the first with the news that moves the market- Tin miner, Alphamin Resources Corp (TSXV:AFM) is being significantly impacted by the ongoing COVID-19 pandemic driving down tin prices
- In the last few weeks, the price of tin has dropped 30 per cent to its lowest point in four years
- The company will require a higher tin price to meet higher debt repayments, which kick-in at the end of July
- However, the company did point out that production remains ongoing and has not been impacted by the pandemic thus far
- At the previous market close, Alphamin Resources Corp. (AFM) was trading at C$0.15 with a market cap of $129.3 million
Tin miner, Alphamin Resources Corp (TSXV:AFM) reported a steady first quarter but is nonetheless being impacted by the ongoing COVID-19 crisis.
The company operates the The Bisie Tin Mine in the Democratic Republic of Congo. While the mine did hit its forecast production for the quarter, a dramatically lower tin price is impacting Alphamin’s bottom line.
In the second week of March, the COVID-19 pandemic drove the price of tin down 30 per cent. As of today, the spot price of tin is around C$20,300 per ton. This is its lowest point in four years and is around $3,500 less than the company has assumed in its latest technical report.
Despite the dramatically lower commodity price, the company claims that tin production and sales remain viable. However, when higher debt repayments kick-in at the end of July, Alphamin will need a higher tin price to support its cashflow.
As that date draws closer, Alphamin is focusing on hitting high production targets and lowering costs throughout its processes.
The company produced 2,100 tons of tin in this first quarter. In the coming quarter the company hopes to bump that production by 10 to 20 per cent.
DRC has reported 134 confirmed cases of COVID-19. Consequently, last week the country declared a state of emergency, which locked down the border and restricted travel to and from the capital.
However, Alphamin’s operations remain largely unaffected thus far. Border crossings relevant to tin production remain open, but the company conceded that supply chain issues could arise in the future.
At the previous market close, Alphamin Resources Corp. (AFM) was trading at $0.15 with a market cap of $129.3 million.
