Shares in Alphamin Resources Corp have risen by over 35% over the past few days – not a bad effort in the context of the general market turmoil and boiling trade wars that have driven almost everything else down.
But there’s a very specific reason in Alphamin’s case.
The company has a major tin producing operation in the east of the Democratic Republic of Congo, a region much troubled by local conflict, but in which it appears peace is once again breaking out.
This development comes as the US is beginning to signal at a high level its increasing interest in the DRC as a jurisdiction.
Alphamin’s Bisie mine is the second highest grading tin mine in the world. It has just initiated a resumption of mining operations, following a temporary hiatus. Rebels had peacefully left the area earlier, ahead of planned talks in Doha.
Taking a keen interest in the re-start was a US envoy visiting Kinsasha on a mission from President Trump.
It’s development that’s also had a positive impact on the share price of Rome Resources (RMR), up more than 16% over the past few days.
Rome isn’t yet in production in eastern Congo, but it has established the presence of significant tin and copper at its extensive license holdings, all of which are close to Alphamin. Indeed, some of the Rome Resources team used to work at Alphamin, and they know the territory well.
Rome too, had slowed operations in the area in the wake of the eruption of the civil strife. But the expectation is that it can now get down to work once more.
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The DRC isn’t the easiest of jurisdictions to operate in, but historically it has been one of the richest in Africa. Rome’s grades at Bisie North have been attractive to say the least. Will the company now attract in a buyer? That’s the great imponderable, but the renewal of peace in the area will certainly be a help to any negotiations.