Alphamin Resources Corp (JSE: APH) stands out as a significant player in the tin mining sector, commanding approximately 4% of the world’s tin production.
The company’s impressive performance is evident in its share price, which has surged by 10% year-to-date, following a remarkable 20% gain in 2023. Achieving a record production of 12,568 tonnes of tin in 2023, representing a 1% increase from the previous year, underscores the company’s operational excellence and commitment to growth.
However, Alphamin has encountered challenges, including adverse weather conditions leading to poor road conditions, impacting truck transit times and export revenue receipts in Q4 2023. Despite these hurdles, the company continues to navigate the dynamic market landscape with resilience. The volatile nature of tin prices, ranging from $13,000 to over $50,000 per tonne in the last four years, presents both opportunities and challenges for Alphamin. Currently trading around $26,500 per tonne, slightly above the 2023 average price achieved, the company remains focused on optimising its operations and capitalising on strategic opportunities in the tin market.
Technical
Alphamin Resources’ share price has embarked on a notable rebound following a period of down-trending price action. Initially, the stock traded within a descending channel pattern, lingering below the 100-day moving average.
However, a breakthrough above both technical indicators, coupled with a robust surge in upside volumes, signals a notable shift in sentiment favouring the upside. Amidst this price action, the R16.58 per share level initially acted as a formidable resistance level, sparking the downturn. Conversely, the market discovered solid support at the R10.51 per share level, aligning with the lower boundary of the descending channel pattern.
Since then, a resurgence in buying activity at this level catalysed a breakout above the 100-day moving average, further reinforcing bullish sentiment. Should upside momentum persist, investors may eye the R16.58 per share resistance level as a potential target to the upside. Conversely, in the face of renewed selling pressures, the R10.51 per share level could serve as a crucial support level, limiting deeper downside potential.
Summary
Alphamin Resources’ resilient growth in tin production, coupled with its recent share price rebound and overcoming challenges, showcases promising prospects. With key technical levels at R16.58 per share resistance and R10.51 per share support, investors watch eagerly as the company navigates the dynamic tin market landscape with resilience.
Sources: Alphamin Resources Corp, Mining.com, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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