Alphamin Resources (TSXV:AFM): Still leading the pack
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EQS-News: / Schlagwort(e): Research Update/Research Update
Alphamin Resources (AFM): Still leading the pack
04.09.2023 / 18:13 CET/CEST
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London, UK, 4 September 2023
Alphamin Resources (AFM): Still leading the pack
Alphamin Resources (AFM) offers rare exposure to a metal (tin) that both Rio
Tinto and the MIT regard as the most likely to benefit from the
electrification of the world economy. Having successfully ramped up its
Mpama North mine at Bisie in the Democratic Republic of the Congo in
2019-20, when the tin price was enjoying one of its biggest bull markets in
decades, AFM is now in a net cash position and is paying dividends at the
same time as developing a second mine (Mpama South).
Whereas in the past we have valued Alphamin as the sum of its two major
assets, Mpama North (including cash) and Mpama South, in this report, for
the first time, we have fully consolidated Mpama South into our full
financial model. Using this approach, our consolidated valuation of Alphamin
is US$1.06/share, or C$1.44/share, based on the present value of future
dividends potentially payable to Alphamin shareholders. However, if
exploration success extends the lives of both Mpama North and Mpama South
indefinitely, we calculate that a valuation as high as C$2.36/share (in 2023
money terms) is ultimately achievable. In any event, we are forecasting
earnings to more than double in FY24, by which time we expect Mpama South to
have reached steady-state production and the tin price to have reached its
long-term equilibrium price of US$31,651/t (cf US$25,305/t currently). In
this context, Alphamin's peers imply an AFM share price of C$1.47 for FY23,
followed by C$2.76 for FY24 and C$2.89 for FY25.
Click here to view the full report.
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from its website
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EQS News ID: 1718631
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1718631 04.09.