Alphamin halts mining in DRC amid security concerns

Published 13/03/2025, 14:26
Alphamin halts mining in DRC amid security concerns

GRAND BAIE, MAURITIUS - Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX), a $667 million market cap mining company with a "GREAT" InvestingPro Financial Health score, announced the temporary suspension of operations at its Bisie tin mine in the Democratic Republic of the Congo (DRC) due to escalating security threats from advancing insurgent groups. The company, with a majority of US ownership, has begun evacuating its mining personnel, retaining only essential staff for property maintenance and security.

The insurgents have recently taken control of towns close to the mine, including Nyabiondo on March 9, 2025, and Kashebere on March 12, 2025. In light of these developments, Alphamin prioritizes the safety of its employees and contractors, which it states cannot be guaranteed under current conditions.

Alphamin is monitoring the situation and is hopeful about the upcoming peace talks scheduled in Angola on March 18, 2025. The company plans to reassess the feasibility of resuming operations at the mine after evaluating the outcomes of these talks.

Furthermore, the company has engaged a US firm to lobby for American diplomatic intervention to address the security threats. The company’s financial results for the year ended December 31, 2024, were initially set to be released on March 14, 2025. Despite generating substantial revenue of $436.73 million in the last twelve months and maintaining strong EBITDA of $213.51 million, the release of these financial results will be postponed due to the operational halt, although Alphamin does not expect significant delays. InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors willing to weather short-term volatility.

This news comes as part of a press release statement by Alphamin Resources Corp., which also contains forward-looking statements regarding the intention to resume mining operations when conditions allow and the anticipated timing for the filing of the company’s 2024 annual financial results. The company cautions that these forward-looking statements are based on current assumptions and that actual outcomes may differ materially.

Alphamin’s decision to halt operations underscores the impact of regional instability on the mining industry in the DRC. The situation remains fluid, and the company has committed to providing further updates when appropriate. The stock has experienced a significant YTD decline of nearly 30%, though InvestingPro subscribers have access to over 20 additional key metrics and exclusive analysis to better evaluate the investment opportunity in this volatile situation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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