Andrada Mining Ltd reported annual revenues up by almost 90% as tin production from its Uis mine in Namibia ramped up.
Annual tin concentrate tonnage increased 54% to 1 474 tonnes in the year ending February 2024, while annual tin metal tonnage increased 51% to 885 tonnes.
“Thanks to the diligence of the operations team and the FY 2023 expansion, the plant performed exceptionally well throughout the year. The volume of ore processed and of tin concentrate and contained tin produced increased by over 50%. The higher tonnage coupled with our optimisation initiatives also meant that all our unit costs were at the lower end of guidance, decreasing by as much as 14% in the fourth quarter due to the enhanced efficiencies. Annual ore processing now stands at approximately 1 million tonnes, and tin concentrate production at approximately 1 500 tonnes. This takes us a step closer to our goal of producing 2 600 tonnes of tin concentrate (1 600 tonnes of contained tin), in line with the Orion royalty agreement.” Anthony Viljoen, Chief Executive Officer of Andrada Mining.
Losses for the year were £8.9 million (£8.1 million) with a cash balance on 27 August 2024 of £10.1 million.
Finding a strategic partner for its lithium operations remains a focus while it expands its tin processing operations.
Milestones for the next few years also include the construction of the pre-concentration circuit, completion of the CI2 Programme, feasibility studies, and the implementation of the lithium integration circuit.
Exploration this year is also planned at Uis, Lithium Ridge, and Brandberg West.
“The most important decision we made during the year was to embark on a strategic process to identify a partner with appropriate technical and financial capabilities to accelerate Andrada’s lithium strategy. In CY 2022, Andrada received several unsolicited approaches from international entities seeking to partner in accelerating the company’s lithium strategy. In May 2023, Andrada launched the strategic process to undertake a structured assessment of the unsolicited approaches. This process has provided us with a number of high-quality opportunities involving some of the industry’s most respected names. Since the launch of the process, leading international organisations in the lithium value chain have visited our assets in Namibia, conducted mineralogical test work, and implemented detailed due diligence,” Viljoen said, adding “While we are aware of shareholders’ expectations to expedite the process, we are focused on securing the best possible partner and terms to create value for shareholders. At the time of this report, our business development team is working tirelessly to thoroughly consider all opportunities, and we look forward to announcing the outcome of the process in due course.”
On 26 June 2024, the company executed a legally binding agreement to restructure UTMC, the operational Namibian entity that holds the company’s licenses, to ensure a more efficient corporate structure. The company sought to increase its ownership interest in UTMC from 85% to 100% through the acquisition of the 15% interest held by the small miners of Uis. The rationale of the restructuring was to consolidate the ownership of Uis and Lithium Ridge licenses and to provide Andrada with the ability to target and expedite the development of these individual mining licenses through full operational and strategic control. Subsequently, on 2 August 2024, following the fulfilment of the precedent conditions, the restructure of the ownership of UTMC was completed, resulting in Andrada taking full ownership of the Uis and Lithium Ridge licenses in lieu of Spodumene Hill, which is now fully owned by the SMU.
“We look forward to concluding the strategic process. This will enable us to push ahead with our development plans on multiple fronts. We will expand our existing tin processing operations, develop our highly prospective lithium assets, and progress our exploration programs. There are several milestones Andrada is focussing on for the next few years, including construction of the pre-concentration circuit, completion of the CI2 Programme, completion of the feasibility studies, and implementation of the lithium integration circuit. Furthermore, we have several exploration programs planned for FY 2025, designed to enhance understanding of the mineralisation on the company’s mining licenses.”