Alphamin Announces Financial Results for the Quarter Ended June 2020/ Updates Corporate Matters - Seite 2

Production Guidance for the next Quarter:
We expect contained tin production of between 2,600 and 2,800² tons for the quarter ending September 2020. The tin price has recently increased to around US$18,000/t compared to a price realized of US$15,359/t during this past quarter which, if maintained, bodes well for the next quarter’s EBITDA and cash flow generation.

Covid-19 Pandemic and Impact on Operations:
The health of our employees is of paramount importance and in this regard the Company has a range of Covid-19 awareness, prevention and other risk mitigation controls in place.

To date, the Company has been able to continue with normal production and concentrate sales activities.

Debt reduction and reprofiling:
On May 15, 2020 the Company completed an offering of common shares pursuant to which an aggregate of 312,319,539 common shares were issued (approximately US$31.01 million) (the “Offering”).

Cash proceeds from the Offering, together with existing cash resources, were applied to a US$31,2 million debt prepayment in return for improved loan terms as set out below:

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² Production guidance is based on certain estimates and assumptions, including but not limited to: quantity of material processed, tin grades of processed material and processing recoveries and assumes mining operations will continue to be conducted in the same manner as the previous quarter and will not be further impacted by the Covid-19 pandemic or any other logistical issues.

	Previous key terms	Post restructure key terms
Interest rate	Libor +14%	Libor +10,5%*
Interest payments	$1,3m per month reducing against capital repayments	$0,3m per month to December 2020. An average $0,45m per month during 2021 and reducing from 2022 against capital repayments
Debt capital repayments	$2,7m per month from July 2020 to June 2023	$850k per month from July 2020 to Dec 2020#. $2,1m per month from January 2021 to June 2023
Debt Service Cover Ratio covenant	1,75x	1,5x with waiver to 30 June 2021
Penalty on prepayment	3% payable in cash	1,7% paid in cash
Cash sweep as mandatory payment against loans	30% of excess cash flows	50% of excess cash flows
* Reverts to Libor +14% on outstanding loans from January 2022 with prepayment penalty reducing to 0%
# Debt capital repayments subject to the LME tin price averaging above US$13,000/t for the month preceding payment

These revised debt terms reduce Alphamin’s estimated break-even tin price, inclusive of debt servicing, by between $2,000 to $3,000/t³ to an estimated $13,000/t³ of payable tin produced during 2020 and 2021.