Alphamin Resources TSXV:AFM Stock Report

Alphamin Resources Corp. Announces 46% Increase in Mpama South Inferred Mineral Resource Estimate

Rome Resources Ltd. entered into a agreement in principle to acquire Medidoc – RD Congo S.A.R.L.U. from Alphamin Resources Corp. (TSXV:AFM) for CAD 3.3 million.

Rome Resources Ltd. entered into a agreement in principle to acquire Medidoc – RD Congo S.A.R.L.U. from Alphamin Resources Corp. (TSXV:AFM) for CAD 3.3 million on May 24, 2022. The consideration to be paid by the issuance of 40,000,000 shares of Rome Resources at a deemed price of CAD 0.05 per share. On closing, Rome resources has agreed to settle a debt of CAD 1,278,229 owing to Medidoc by Medidoc Congo by the issuance of an additional 25,564,580 shares of the Company at a deemed price of CAD 0.05 per share. The total consideration amounts to 65,564,229 shares. Under the agreement, Rome Resources has agreed to fund, to the extent of up to CAD 250,000, on-going costs associated with the maintenance of the Permit until closing. Closing of the transaction is subject to all requisite shareholder and securities regulatory body approvals and the satisfaction or waiver of conditions precedent typically present in transactions of this size and nature. Closing will result in the Company ceasing to be eligible for listing on NEX and the Company will apply for a listing on the TSX Venture Exchange.

Rome Resources Ltd. entered into a agreement in principle to acquire Medidoc – RD Congo S.A.R.L.U. from Alphamin Resources Corp. (TSXV:AFM) for CAD 3.3 million.

Rome Resources Ltd. entered into a agreement in principle to acquire Medidoc – RD Congo S.A.R.L.U. from Alphamin Resources Corp. (TSXV:AFM) for CAD 3.3 million on May 24, 2022. The consideration to be paid by the issuance of 40,000,000 shares of Rome Resources at a deemed price of CAD 0.05 per share. On closing, Rome resources has agreed to settle a debt of CAD 1,278,229 owing to Medidoc by Medidoc Congo by the issuance of an additional 25,564,580 shares of the Company at a deemed price of CAD 0.05 per share. The total consideration amounts to 65,564,229 shares. Under the agreement, Rome Resources has agreed to fund, to the extent of up to CAD 250,000, on-going costs associated with the maintenance of the Permit until closing. Closing of the transaction is subject to all requisite shareholder and securities regulatory body approvals and the satisfaction or waiver of conditions precedent typically present in transactions of this size and nature. Closing will result in the Company ceasing to be eligible for listing on NEX and the Company will apply for a listing on the TSX Venture Exchange.

First quarter 2022 earnings: EPS misses analyst expectations

First quarter 2022 results: EPS: US$0.034 (up from US$0.007 in 1Q 2021). Revenue: US$146.2m (up 92% from 1Q 2021). Net income: US$42.3m (up 429% from 1Q 2021). Profit margin: 29% (up from 11% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 24%, compared to a 16% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 60% per year, which means it is significantly lagging earnings growth.

Investor sentiment deteriorated over the past week

After last week's 23% share price decline to CA$1.07, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Metals and Mining industry in Canada. Total returns to shareholders of 340% over the past three years.