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April 20, 2022

Alphamin puts itself up for sale amid soaring tin prices

The tin mining firm, which has a market value of $1.3bn, could attract interest from Chinese bidders and private equity funds.

Mauritius-based tin mining firm Alphamin Resources has launched a potential sale of the company to capitalise on surging metal prices, reported Bloomberg News citing people with knowledge of the matter.

As part of the sale plan, which is expected to attract interest from Chinese bidders and private equity funds, Alphamin is working with boutique advisory firm Cutfield Freeman & Co.

According to the people, the Canadian-listed mining company has also released marketing materials to potential bidders and is seeking initial offers by the end of April 2022. Deliberations are currently ongoing on the matter.  

However, there is no certainty of a deal materialising.

Investment firm Denham Capital owns a 57% stake in Alphamin, which has a market value of $1.3bn (C$1.65bn), according to the publication.

In November 2021, Alphamin said it was looking to maximise shareholder value through a strategic review that would include a potential sale, mine life extension, balance sheet restructuring or shareholder distributions.

Alphamin operates the Mpama North mine in the Democratic Republic of Congo. The project is said to be one of the highest-grade tin mines in the world.

With a contained tin production capacity of nearly 10,000tpa, the mine accounts for around 3% of the world’s tin usage.

Trading house Gerald Metals currently has an offtake agreement for the tin concentrates from Alphamin-owned Mpama North asset.

The firm plans to commission the nearby Mpama South project in December 2023.

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