TIDMATM
RNS Number : 3117G
AfriTin Mining Ltd
29 March 2022
29 March 2022
AfriTin Mining Limited
("AfriTin" or the "Company")
Quarterly and FY2022 Production Update
AfriTin Mining Limited (AIM: ATM), an African tech-metals mining
company with a portfolio of mining and exploration assets in
Namibia, is pleased to provide the quarterly production update for
the Uis Tin Mine ("UMTC" or "Uis") for the fourth quarter ("Q4")
and 12 months ending 28 February 2022 of the 2022 Financial Year
("FY2022") *.
Highlights:
-- Annual ore processed increased 55% from FY2021 to 543,601 tonnes;
-- Annual tin concentrate production increased 70% to 804 tonnes in FY2022;
-- Annual tin concentrate production was 12% above nameplate
capacity reflecting strong operational performance;
-- Strong tin price: Average tin price in Q4 of US$45,050 (Q3: 39,025);
-- Ended the financial year with cash and cash equivalents of
GBP7.372m (unaudited) (2021: GBP1.351m, audited); and
-- Existing Standard Bank working capital facility has been
increased by N$40m (c. GBP2m) to N$75m (total value now
c.GBP4m);
Anthony Viljoen (CEO) commented:
"I am pleased to provide our Q4 production update and annual
production numbers. Uis has performed strongly with production
exceeding nameplate capacity by 12%, an excellent achievement
particularly given the backdrop of record tin prices. The Company
ended the year in a strong financial position that will allow for
the rapid deployment of the various growth initiatives, including
expanded exploration, metallurgical test work on by-product
extraction, specifically lithium, ore sorting test work and
development of regional mining licence areas, that will be rolled
out over the course of 2022."
Q4 Production Update
The Company delivered a strong quarterly operational
performance, contributing to a record annual performance for Uis. A
total record annual tin concentrate production of 804 tonnes was
produced in FY2022, 12% above the annual nameplate production
target of 720 tonnes. This represents a year-on-year (YoY) increase
of 70% from FY2021.
An average plant processing rate of 92 tph was achieved for
FY2022 against a design target of 80 tph. Over 500k tonnes of ore
were processing during the year, a 55% YoY increase. Tin recovery
remains above the targeted 60%. The average feed grade for FY2022
was lower than the preceding year due to natural grade variations
in the mining area. However, the feed grade is still in line with
the Company's mine plan estimates and the average projected
life-of-mine feed grade of 0.138% Sn.
Operating costs and All-In Sustaining Costs (AISC) for FY2022
were approximately US$25,209/tonne and US$27,515/tonne,
respectively (unaudited). This compares favourably to the realised
average tin price of US$38,604 achieved for the year. Operating
costs for Q4 increased 23% quarter on quarter of which the
Directors believe approximately 50% of this increase, can be
attributed to macro-economic factors related to increased smelting
costs prices and exchange rate fluctuations. The balance is due to
a drive for improvement in operational standards, with increased
maintenance and spares inventory management. Various continuous
improvement projects aim to reduce these costs further on a tin
only basis. The Company completed the FY2022 with a net cash and
cash equivalents balance of GBP7.372m (unaudited), up 446% from a
FY2021 total of GBP1.351m (audited).
The FY2022 quarter-on-quarter (QoQ) and year-on-year (YoY)
performance for Uis Tin Mining Company (UTMC) is tabulated
below:
Table 1 : QoQ and YoY performance of UTMC during the 2022
Financial Year.
Descriptio Units 2022 Financial Year (March 2021 to February 2022)
----------- ----------------------------------------------------------------------------------------------------------
Q1 Actual Q2 Actual Q3 Actual Q4 Actual QoQ Total Total YoY
(Mar - May) (Jun - Aug) (Sept - Nov) (Dec - Feb) Performance FY 2021 FY 2022 Performance (%
(% Change) Change)
----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Plant
Availability % 82** 86** 89** 89 0% 73 87 18%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Plant
Utilisation % 75** 75** 83** 82 -1% 79 79 0%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Plant
Processing
Rate tph 84 87 94 98 4% 66 92 39%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Ore Processed t 115,751 127,263 148,700 151,887 2% 350,736 543,601 55%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Feed Grade % Sn 0.167 0.137 0.150 0.137 -9% 0.190 0.147 -23%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Tin
Concentrate t 183 185 220 216 -2% 473 804 70%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Tin Contained
in
Concentrate t 114 113 136 134 -1% 309 497 61%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Tin Recovery % 59 65 61 64 5% 46 62 34%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
Operating US$/t
Cost for Uis contained
Tin Mine tin 24,644*** 28,077*** 22,978*** 28,300 23% 28,253 25,209 -11%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
US$/t
AISC for Uis contained
Tin Mine tin 28,158 29,931 23,290 29,224 25% 28,253 27,515 -3%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
US$/t
Tin Price contained
Achieved tin 30,749 34,235 39,025 45,050 15% 22,504 38,604 72%
-------------- ----------- ------------ ------------ ------------- ------------ ------------ -------- -------- ---------------
The Phase 1 Expansion Project is currently in progress and is
estimated to increase tin concentrate production by 67% by way of
modular expansion of the existing processing facility The bulk of
the civil construction and steel fabrication has been completed,
with on-site steel construction ramping up. Project construction is
expected to be completed in Q3 of our Financial Year. Construction
has been hampered by global supply chain shortages and constraints
in local fabrication capacity. The Company will keep the market
updated as the project progresses.
Working Capital Facility Update
AfriTin is pleased to announce that with immediate effect the
existing Standard Bank Namibia Limited working capital facility set
out in the announcement dated 26 November 2021 (the "Announcement")
has been increased from N$35m to N$75m (c GBP4m). As set out in the
Announcement, the working capital facility attracts interest at
Namibian prime (currently 7.75%) less 1% and is reviewed on an
annual basis. Owing to an increase in production of the through the
at the operations, Standard Bank has increased its working capital
facility to buffer the increased capacity against any unexpected
disruptions in global supply chains as well as mitigating delivery
of concentrate to the offtaker, Thaisarco as a result of shipping
delays.
At the same time, with immediate effect, the Company has entered
into vehicle asset financing of N$20m (c. GBP 1m) with Standard
Bank Namibia Limited. This financing is to be used for the
procurement of a crane and other vehicles required by the
operations at Uis and attracts annual interest at a rate equal to
Namibian prime (currently 7.75%). The financing facility is
repayable on the date being 5 years from the date of drawdown, and
the Company confirms that it has drawn down the full amount.
Exploration Drilling Update
The exploration drilling programme currently underway on the
V1/V2 pegmatite orebody aims to increase the resource
classification for Li and Ta over the areas where Sn is presently
classified within the measured and indicated categories. The
exploration project commenced in Q3* FY (2021). The programme is
progressing in accordance with the approved timeline with results
expected in Q3 (2022), a total of 1,674 m have been drilled since
the commencement of the programme.
* The Company's Financial Year runs from March to February. All
reference to quarters applies to the financial year reporting
period.
** Restated historical availability and utilisation figures for
FY2022 owing to adjustments in the calculation and reallocation of
historical events.
*** Restated historical operating cost figures for FY2022 owing
to adjustments in capitalisation and expenditure of costs
associated with waste stripping.
Glossary of Terms
Operating Costs Excludes sustaining capital expenditure associated with developing and maintaining
the Uis
operation (unaudited)
AISC = All-In Sustaining Cost Incorporates all costs related to sustaining production and in particular recognising
the
sustaining capital expenditure associated with developing and maintaining the Uis
operation,
including pre-stripping waste mining costs (unaudited)
--------------------------------------------------------------------------------------
AfriTin Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
---------------------
Nominated Adviser +44 (0) 207 220 1666
---------------------
WH Ireland Limited
Katy Mitchell
---------------------
Corporate Advisor and Joint Broker
---------------------
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
---------------------
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart +44 (0) 20 7710 7600
---------------------
Tavistock Financial PR (United Kingdom) +44 (0) 207 920 3150
---------------------
Jos Simson
Nick Elwes
---------------------
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is a London-listed tech-metals mining
company with a vision to create a portfolio of globally
significant, conflict-free, producing assets. The Company's
flagship asset is the Uis Tin Mine in Namibia, formerly the world's
largest hard-rock open cast tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current strategy to ramp-up production at
the Uis Tin Mine in Namibia to 10,000 tonnes of tin concentrate and
350,000 tonnes of lithium concentrate in a Phase 2 expansion,
having reached Phase 1 commercial production in 2020. The Company
strives to capitalise on the solid supply/demand fundamentals of
tin and lithium by developing a critical mass of resource
inventory, achieving production in the near term and further
scaling production by consolidating assets in Africa.
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