Alphamin Resources (APH) Q2 2024 earnings summary

Executive summary

• Achieved commercial production at the Mpama South processing facility in May 2024, expected to boost annual tin output to 20,000 tonnes.

• Revenue for the six months ended June 30, 2024, increased 34% year-over-year to $213.2 million.

• Net income for the six months rose 26% year-over-year to $47.4 million, with EPS of 3.04 US cents.

• Cash flow from operations rebounded to $105 million for the six months, up from a negative $6.8 million in the prior year period.

• Lower capital and tax obligations, improved sales, and new offtake terms are expected to enhance 2024 cash flow.

Financial highlights

• Revenue for Q2 2024 was $103.9 million, up from $75.7 million in Q2 2023.

• Gross profit for the six months was $98.5 million, up from $71.7 million year-over-year.

• Operating profit for the six months reached $85.6 million, up from $60.0 million year-over-year.

• Net income for Q2 2024 was $22.5 million, up from $17.8 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $37.7 million, up from $7.2 million at year-end 2023.

Outlook and guidance

• Addition of Mpama South is expected to increase annual tin production to approximately 20,000 tonnes.

• 2024 cash flow is projected to improve due to lower capex, reduced tax, and higher revenue from expanded operations.