Alright degens, here’s a commodity stock that somehow manages to combine a world-class mine, stupid margins, and a supply-constrained metal. All of these are words I like.
Tin is essential for solder, which means electronics, semiconductors, data centres, EVs, power electronics, solar, etc. You can build the AI economy without lithium - but people absolutely love lithium stocks and I do too. But you cannot build a circuit board without connecting the components together. Right now, tin is a tiny market with constrained supply and relatively few major producers.
Bisie contains the highest and second-highest-grade known tin deposits in the world, with a blended grade around 3%. That grade is why Alphamin sits near the bottom of the global cost curve. They sell tin for $52k/t and all-in costs are $19k/t. Production has now reached a 20,000-tonne annualized run rate.
They are returning the cash. AFM ended June with about US$91M of net cash even AFTER US$160M of distributions and US$26M of corporate tax payments during the quarter. Of that distribution, roughly US$121M went to Alphamin shareholders. Dividend yield is over 10% right now. Management plans to make another FY2026 interim-dividend decision in Q4.
I was able to find two analyst forecasts. One at $2.50 and one at $4.44. Averaging between those analysts anticipate 130% growth in this stock. That’s on top of the dividend.
In short, AI needs solder and so needs tin. Tin is getting supply constrained and I anticipate prices will keep going up. AFM has access to some of the highest grade tin in the world and gets a fat margin on current prices. They’re paying out those margins in healthy dividends and some nice anticipated growth.
Not financial advice. Do your own research.