The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 (MAR) as in force in the United Kingdom pursuant to
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via Regulatory Information Service (RIS), this
inside information will be in the public domain.
Andrada Mining Limited
("Andrada" or the
"Company")
Operational update for the period ended
31 August 2024
Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the African
technology metals mining company with a portfolio of mining and
exploration assets in Namibia, hereby provides an unaudited
operational update for the second quarter ("Q2 FY2025" or the "Quarter") and the
first six months of the 2025 financial year ("H1 FY2025"), both ended 31 August
2024.
HIGHLIGHTS
Operations
§ Year-on-year
("YoY") increase in ore
processed
- Q2
FY2025 to 243 528 tonnes (Q2 FY2024: 232 154
tonnes).
§ YoY increase in
contained tin production
- Q2
FY2025 to 239 tonnes (Q2 FY2024: 238 tonnes).
§ YoY increase in plant
utilisation
- Q2
FY2025 at 93% (Q2 FY2024: 83%).
§ YoY increase in tin
recovery
- Q2
FY2025 to 75% (Q2 FY2024: 67%).
§ YoY increase in
realised tin price
- Q2
FY2025 to USD31 937 (Q2 FY2024: USD25 183).
§ Approximately 15
tonnes of saleable tantalum concentrate at a grade of 10.8%
Taâ‚‚Oâ‚… was shipped to AfriMet
during the Quarter.
§ Approximately five
tonnes of petalite at a grade of over 4% Liâ‚‚O supplied to a ceramic producer during the
Quarter.
Financial
§ Average C1 operating
cash cost for Q2 FY2025 (USD19 927) and H1 FY2025
(USD19 400) was within management guidance of between USD17
000 and USD20 000 per tonne of contained tin.
§ Average C2 operating
cash cost for Q2 FY2025 (USD24 662) and H1 FY2025 (USD24 043) was
within management guidance of between USD20 000 and USD25 000 per
tonne of contained tin.
§ All-in sustaining
cost ("AISC") for Q2 FY2025
(USD27 931) and H1 FY2025 (USD28 328) was within management
guidance of between USD25 000 and USD30 000 per tonne of contained
tin.
§ Conclusion of the
Bank Windhoek Limited ("BWL") NAD175 million (c £7.5 million)
funding agreement.
§ Unaudited available
cash balance, including undrawn facility on 31 August 2024, of £8.2
million (USD 10.8 million).
Anthony Viljoen, Chief Executive Officer,
commented:
"We continue to improve operational
performance as we optimise processes, indicated by the higher plant
utilisation rates and contained tin tonnage. The exposure of the
higher-grade ore at Uis has enabled us to expedite the lithium
bulk-sampling campaigns. We are extremely pleased with the initial
commercial sale of petalite concentrate that validates the value of
Uis's lithium mineralisation. Furthermore, the ongoing
testwork will inform the lithium integration circuit studies whilst
securing the off-take agreements for the petalite concentrate.
Importantly, the steady-state production and sale of tantalum
concentrate has firmly established Andrada as a critical metals'
global supplier.
The continued support from our lenders as demonstrated by the
finalisation of the Bank Windhoek funding agreement is an
endorsement of our ability to implement and achieve our strategic
objectives. Finally, the high-profile partnership announced earlier
this month with SQM on Lithium Ridge alongside the recent drilling
results at Brandberg West truly confirm the high-quality nature of
our resource portfolio and the exciting opportunity at
Andrada."
OPERATIONAL review
TIN
Q2 & H1 performance
Ore processed in Q2 FY2025 increased
by 5% to 243 528 and by 8% in H1 FY 2025 to 481 504 YoY. The ore
mined was blended to improve ore utilisation whilst maintaining a
grade in line with the reserve statement. The feed grade will
continue to be maintained within the range of 0.135% to 0.145% tin
("Sn").
The plant processing rate in Q2
FY2025 was slightly lower at 130 tonnes per hour ("tph"), compared
to 138tph in Q2 FY2024 and
134tph in Q1
FY2025, mainly due to enhanced maintenance
implemented on the crushing circuit during the Quarter.
Consequently, the combination of the lower feed grade and
processing rate resulted in the marginal decrease in tin
concentrate production to 388 tonnes (Q2
FY2024: 398 tonnes). Although the resulting
contained tin tonnage in Q2 FY2025 was essentially flat YoY at 239
tonnes (Q2 FY2024: 238
tonnes), the tonnage for the six-month
period was 2% higher than the comparative period at 462 tonnes (H1
FY2024: 454 tonnes).
Table 1: Uis Mine unaudited tin production and
cost performance
Description
|
Unit
|
Q2 FY2024
|
Q1 FY2025
|
Q2 FY2025
|
H1 FY2024
|
H1 FY2025
|
Q225 vs
Q125
|
Q225 vs
Q224
|
H125 vs
H124
|
Feed grade
|
% Sn
|
0.161
|
0.141
|
0.139
|
0.156
|
0.140
|
-1%
|
-14%
|
-10%
|
Plant processing
rate
|
tonnes per
hour
|
138
|
134
|
130
|
136
|
132
|
-3%
|
-6%
|
-3%
|
Ore
processed
|
tonnes
|
232
154
|
237
976
|
243 528
|
446
621
|
481 504
|
2%
|
5%
|
8%
|
Tin
concentrate
|
tonnes
|
398
|
364
|
388
|
758
|
752
|
7%
|
-3%
|
-1%
|
Contained
tin
|
tonnes
|
238
|
233
|
239
|
454
|
462
|
3%
|
0%
|
2%
|
Tin
recovery*
|
%
|
67
|
69
|
75
|
65
|
72
|
9%
|
12%
|
11%
|
Plant
availability
|
%
|
92
|
89
|
91
|
92
|
90
|
2%
|
-1%
|
-2%
|
Plant
utilisation
|
%
|
83
|
90
|
93
|
81
|
92
|
3%
|
12%
|
14%
|
Uis mine C1 operating
cost¹
|
USD/t contained
tin
|
19
560
|
18
869
|
19 927
|
18 161
|
19 400
|
9%
|
2%
|
7%
|
Uis mine C2 operating
cost²
|
USD/t contained
tin
|
22
252
|
23
422
|
24 662
|
20
796
|
24 043
|
8%
|
11%
|
16%
|
Uis mine
AISC³
|
USD/t contained
tin
|
26
671
|
28
775
|
27 931
|
24
662
|
28 328
|
-1%
|
5%
|
15%
|
Tin price
achieved
|
USD/t contained
tin
|
25
183
|
30
839
|
31 937
|
25
912
|
31 397
|
4%
|
27%
|
21%
|
1
C1 refers to
operating cash cost per unit of production excluding selling
expenses and sustaining capital
expenditure.
2
C2 refers to
operating cash cost per unit of production is C1 plus selling expenses including
logistics, smelting and royalties.
3
All-in
sustaining cost (AISC) incorporates all costs related to sustaining
production; capital expenditure associated with developing and
maintaining the Uis operation as well as pre-stripping waste mining
costs.
*Tin recovery includes
stockpiles.
Tin pre-concentration circuit expansion and
Continuous Improvement II ("CI2")
The delivery of the crusher circuit
components for the pre-concentration circuit from Metso commenced
in Q2 FY2025. MetC
Engineering continues to develop the detailed plant design.
The CI2 process efficiency improvements have resulted in the
increased tin recovery to 75% in Q2 FY2025 and 72% in H1
FY2025.
TANTALUM
Tantalum production and supply
Approximately 16 tonnes of tantalum
concentrate were produced during the Quarter, an increase of 78%
from approximately nine tonnes produced during Q1 FY2025. The
Company has supplied AfriMet with 15 tonnes to date and has
received a 90% provisional payment for the full supply.
Table 2: Tantalum
production
Description
|
Unit
|
Q1 FY2025
|
Q2 FY2025
|
Tantalum
concentrate
|
tonnes
|
9
|
16
|
Contained
tantalum
|
kg
|
865
|
1
731
|
Tantalum
concentrate grade
|
%
|
10
|
11
|
Tantalum
recovery
|
%
|
3
|
6
|
Lithium
Lithium pilot plant
A one-off spot sale to a ceramic
producer of five tonnes petalite at a grade of over 4%
Liâ‚‚O was completed
during the Quarter. Furthermore, bulk sampling for potential off
takers was implemented during the Quarter from the high - grade Uis
ore recently exposed through the accelerated push-back. The
facility continues to be primarily utilised for business
development bulk sampling campaigns. Importantly, the testing
campaigns will also contribute to the modelling of the integrated
lithium circuit thereby expediting the achievement of the Company's
lithium to market objective.
FINANCial review
Cost overview
All Q2 and H1 costs were within
management guidance despite the higher maintenance costs and plant
outage in Q1 FY2025. The combination of processing and inflationary
mining cost increases resulted in the increase in the C1 cost in
the period under review. The YoY double-digit increase in the C2
cost for both the Quarter and six-month period was mainly due to
the royalty expense introduced as the beginning of CY2025. The
lower average stripping ratio resulted in the lower YoY increase in
the AISC compared to C2 costs of 5% for Q2 FY2025. Available cash
on 31 August 2024 was £8.2 million (USD10.8 million).
Bank Windhoek funding
Andrada finalised the conditional
NAD175 million (£7.5 million) agreements between the subsidiary Uis
Tin Mining Company (PTY) Ltd and BWL. The
funding terms from BWL, including lower
monthly and longer period repayments unlock higher cashflow for the
Company. Furthermore, BWL has stated interest in funding
construction of requisite electricity infrastructure at Uis for the
planned future growth. (See
announcement released on 7 August 2024).
POST - PERIOD
Strategic process
On 9 September 2024, the Company
concluded a three stage earn-in agreement with Sociedad QuÃmica y Minera de Chile SA
through its subsidiary SQM Australia (Pty) Ltd ("SQM"). The
agreement is for SQM to partner with the Company in developing the
spodumene - rich Lithium Ridge asset. The
Agreement brings both the financial and technical capabilities
required to accelerate the exploration of Lithium Ridge.
(See announcement released on 9
September 2024).
Andrada has established and continues
to pursue robust value-accretive relationships with global
organisations that have the technical and funding capabilities to
optimally assist in advancing the Company's growth
initiatives.
Brandberg West first batch drilling results
Andrada released exploration
drilling results from the Brandberg West exploration
licence. These results constituted the
first batch of samples from this programme, representing ten (10)
out of the twenty (20) holes drilled. Selected holes indicated
intersections with significant tin, tungsten and copper
mineralisation over limited meterage. (See announcement released on 12 September
2024 for full details).
​
CONTACTS
Andrada Mining
Anthony
Viljoen, CEO
Sakhile
Ndlovu, Investor Relations
|
+27 (11)
268 6555
|
NOMINATED ADVISOR &
BROKER
|
|
Zeus Capital
Katy
Mitchell
Harry
Ansell
Andrew de
Andrade
|
+44 (0) 20 2382 9500
|
CORPORATE BROKER &
ADVISOR
|
|
H&P Advisory Limited
Andrew
Chubb
Jay
Ashfield
Matt
Hasson
|
+44 (0) 20
7907 8500
|
Berenberg
Jennifer
Lee
Natasha
Ninkov
|
+44 (0) 20
3753 3040
|
FINANCIAL PUBLIC
RELATIONS
|
|
Tavistock (United Kingdom)
Emily
Moss
Josephine
Clerkin
|
+44 (0) 207
920 3150
andrada@tavistock.co.uk
|
About Andrada Mining Limited
Andrada Mining Limited is listed on
the London Stock Exchange (AIM), New York (OTCQB) and Namibia Stock
Exchange with mining assets in Namibia, a top-tier investment
jurisdiction in Africa. Andrada strives to produce critical raw
materials from a large resource portfolio, to contribute to a more
sustainable future, improved living conditions and the upliftment
of communities adjacent to its operations. Leveraging its strong
foundation in Namibia, Andrada is on a strategic path to becoming a
leading African producer of critical metals including lithium, tin,
tungsten, tantalum and copper. These metals are important enablers
of the green energy transition, being essential for components of
electric vehicles, solar panels and wind turbines.