Alphamin Resources Corp., one of the world's largest tin miners, has been hit by a surge in metal prices, according to people familiar with the matter. The sale of the company has begun.
A deal with boutique consulting firm Cutfield Freeman&Co., people familiar with the matter said. Alphamin, the Canadian-listed partner, has sent marketing materials to potential bidders. The company has asked for preliminary offers by the end of the month, according to the people, who asked not to be named because the information is private.
Alphamin shares rose 16 percent to C $1.30 as of 2:45 p.m. in Toronto, giving the company a market value of C $1.65 billion ($1.3 billion). Denham Capital, an investment firm, is the largest shareholder with 57 per cent, according to data compiled by Bloomberg. The company is likely to attract interest from Chinese bidders and private equity funds, according to people familiar with the matter.
Tin is going through a period of renewed focus on the technology product supply chain. The metal, used as a solder in chips made by companies such as TSMC and Intel, hit a record high of $51,000 a metric ton in March. It traded Tuesday at $43,090, still up about 150% since the start of 2020.
Alphamin announced in November that it was seeking a strategic review to maximise shareholder value. The company said at the time it would consider options including a potential sale, extension of mine life, balance sheet restructuring or shareholder distribution.
The deliberations are ongoing and there is no certainty that a deal will result, the people said. CEO Maritz Smith declined to comment on Alphamin's previous statements. A representative for Cutfield Freeman also declined to comment, while a spokesman for Denham Capital did not immediately respond to a request for comment.
Alphamin's Mpama North mine in the Democratic Republic of Congo is considered one of the highest grade tin mines in the world. It accounts for about 3% of the world's metal use, producing 10,969 tons of tin concentrate in 2021. That number will expand as the company begins production in December 2023 at its nearby Mpama South project.
Gerald Metals, the trading company, currently holds an offtake agreement for tin concentrate produced by Alphamin at its Mpama North assets.
