JSE-listed Alphamin has reported an 18% quarter-on-quarter decline in high-grade tin concentrate production from the Bisie tin mine, in the Democratic Republic of Congo (DRC), for the first quarter.

The company reported contained tin production of 4 270 t for the quarter ended March 31, down from 5 237 t in the previous quarter, following a cessation of mining and processing activities on March 13 owing to security concerns.

The tin grade of ore processed was 18% higher at 3.55%, and as a result, daily throughput volumes were reduced to optimise plant recoveries at the higher feed grade.

Owing to the timing of the security-related production interruption, the Alphamin board said it considered it prudent not to declare a final 2024 financial year dividend in April.

In the first quarter, insurgents advanced from their previous positions and seized the cities of Goma and Bukavu, the capital cities of the North and South Kivu provinces, in the eastern DRC.

On March 13, the company announced the temporary cessation of mining operations owing to insurgents’ advance westwards towards the mine location and within 110 km from the mine.

Insurgents subsequently occupied the town of Walikale on March 20.

On April 9, the company announced the initiation of a phased resumption of operations following the withdrawal of insurgents from Walikale eastwards towards Masisi.

The mine is currently operating well, the company says, with all employees on site. Tin production from the processing facilities is at target and underground blasting and tramming of ore have normalised to plan.

Underground development metres are slightly below plan while ramping up. The safety of the company’s employees and contractors, and compliance with DRC and international laws, remains its committed focus.

Alphamin is closely monitoring the situation as it continues to progress and will provide further updates if required. Owing to significant uncertainties in how the conflict will evolve, the risk of disruptions to the company’s mining operations remains high.

The 2025 financial year mine plan still targets an average ore grade of 3%, with the outperformance in grade during the first quarter expected to average down during the remainder of the financial year.

The processing facilities continued to perform well, with overall plant recoveries averaging 75% during the quarter, above the target of 73%.

Contained tin sales of 3 863 t were recorded in the first quarter against production of 4 270 t, with a significant amount sold and exported post quarter-end.

The first-quarter all-in sustaining cost (AISC) was $16 279/t, 8% above the prior quarter’s AISC of $15 034/t, primarily owing to the impact of the operational stop on March 13.

Operating expenditure included fixed costs and payroll for the full month of March, as well as care-and-maintenance and mine evacuation costs, while tin production was halted.

The higher AISC together with lower sales volumes resulted in earnings before interest, taxation, depreciation and amortisation for the first quarter of $61.8-million, 18% lower than the previous quarter.

Following the temporary cessation of operations on March 13, owing to security concerns, the company returned to full production in late April, following the decision to resume made on April 9. As a result of the production interruption, the company has reduced its 2025 financial year contained tin production guidance from 20 000 t to 17 500 t.

The company had $72-million in cash at quarter-end, with $65-million in accounts receivable.

Substantially all tin produced prior to the shutdown was exported and paid for by May 13. The company’s cash position at May 12, was $74-million, after its 2024 financial year final DRC tax payment of $38-million at the end of April and having reduced its overdraft facility by $15-million to $38-million.

Exports resumed from site on May 9.

During the first quarter of this year, the company had not used its up to $50-million tin prepayment arrangement with Gerald Metals, which will restart during the second quarter.

The company’s overdraft facility was renewed for a further 12 months, and the intention is to reduce the drawn amount to $25-million by May 31, with an option to increase it back to $53-million subject to an international bank guarantee against offshore cash.

In the event that the operation ceases, the facility will reduce to $25-million with full repayment required should the cessation continue for six months.