A sound investment
The Project presents an attractive opportunity to develop one of the highest grade known tin deposits in the world and to promote economic growth and stability in North Kivu. Alphamin believes that the development of the Project would be a catalyst for regional economic growth.
The International Tin Research Institute (ITRI) has forecast that there is likely to be a global shortfall of tin commencing in 2018. Future supply is uncertain as tin inventories are running low and economically viable tin reserves are being depleted. There are a limited number of active industrial scale tin mines outside of China and Indonesia and the majority of other new projects face significant technical, financing and other challenges, while obtaining the required permits to build a mine remain complex. As a result, tin mining companies should become of increasing interest to the owners of consumer brands and their manufacturers, which use tin in their products (laptops, mobile phones and cars). Consumer companies will need to secure supply.
The Bisie tin deposit is one of the largest and most significant tin deposits in the world – thus making sense to explore the prospect and in future mine the tin at Bisie. Bisie is expected to produce approximately 9 000 tonnes of low-cost, conflict-free tin in concentrate per annum for 12.5 years. First production of tin in concentrate is anticipated in the fourth quarter of 2018 (Q4 of 2018).
Alphamin intends to develop Bisie at a projected pre-production capital cost of US$151.4 million and to raise debt and/or equity during 2016/2017 to develop the Project and provide working capital during the ramp-up phase. Alphamin’s future expansion is expected to be internally funded with operational cash flows. Alphamin is expected to deliver a significant return to investors through the full range of expected tin prices. Under the Feasibility Study the net present value (NPV) of the investment in Bisie amounts to US$402.2 million and the internal rate of return (IRR) will be 49.1%. The updated Feasibility Study, is based on US$17 300 per tonne tin price.