TIDMATM

RNS Number : 0573P

AfriTin Mining Ltd

16 June 2022

16 June 2022

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 is now considered to be in the public domain.

AfriTin Mining Limited

("AfriTin" or the "Company")

Quarterly Production Update

AfriTin Mining Limited (AIM: ATM), an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to provide the unaudited quarterly production update for the Uis Mine ("Uis") for the first quarter ("Q1") of the 2023 Financial Year ("FY2023") ending 31 May 2022.

Highlights:

   --      Production of tin increased by 13% quarter-on-quarter ("QoQ") to 152 tonnes; 
   --      Record tin recovery of 67% achieved during the quarter under review; 

-- All-In Sustaining Costs ("AISC")* improves 16% QoQ on the back of increased production and improved operational efficiencies; and

   --      Phase 1 Expansion Project on track for completion in Q3 of the calendar year. 

* Refers to the All-in Sustaining Costs for the operating entity Uis Tin Mining Company (Pty) Ltd ("UTMC"), but excludes overheads at a Group level.

Anthony Viljoen (CEO) commented:

"Our tin-producing operation at the Uis Mine continues to deliver record-breaking performance. I am also pleased to note that the initiatives aimed at improving our unit costs are yielding positive results. These results are a testament to our team's capability. The Phase 1 Expansion Project is nearing completion and will further strengthen our tin revenue base.

The strong performance of the tin operation provides a solid platform for developing potential lithium and tantalum by-product revenue streams. Our position as an operating, cash-generating mining company allows us to fast-track development of near-term opportunities, as well as expanding our production and product portfolio."

Q1 Production Update

The Company achieved a record quarterly performance at the Uis Mine for Q1 of FY2023. Tin concentrate production for the period under review totalled 239 tonnes. Tin contained in concentrate increased by 13% QoQ to 152 tonnes.

A total of 152 kt of ore was processed at an average processing rate of 99 tph. Processing plant efficiency as measured by overall tin recovery improved 5% QoQ to a record of 67%. The average plant feed grade for the quarter increased 9% QoQ due to natural orebody grade variations in the current mining area.

AISC for UTMC decreased by 16% to US$23,526 (unaudited) per tonne of tin. This compares favourably with the realised average tin price of US$34,367 achieved for the quarter. The improvement in AISC can be attributed to higher tin production and operational efficiencies. Secondary factors contributing to quarterly cost variations include exchange rate fluctuations and work-in-progress ("WIP") movements. The Company remains committed to driving continuous improvement initiatives aimed at enhancing operational efficiencies and unit costs, and minimising cost fluctuations.

The QoQ performance for the Uis Mine is tabulated below:

Table 1 : QoQ (Q1 FY2023 vs Q4 FY2022) production and cost performance of the Uis Mine.

 
 Description                Units            FY2022 Actual     Q4 FY2022 Actual    Q1 FY2023 Actual    QoQ Performance 
                                           Quarterly Average    (Dec 2021 - Feb     (Mar 2022 - May       (% Change) 
                                            (Mar 2021 - Feb          2022)               2022) 
                                                 2022) 
 Plant Availability           %                   87                  89                  89                 1% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
 Plant Utilisation            %                   79                  82                  78                - 4% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
  Plant Processing 
        Rate                 tph                  92                  98                  99                 1% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
   Ore Processed              t                 135,900             151,887             152,243              0% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
     Feed Grade              % Sn                0.147               0.137               0.149               9% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
  Tin Concentrate             t                   201                 216                 239                11% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
  Tin Contained in 
     Concentrate              t                   124                 134                 152                13% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
    Tin Recovery              %                   62                  64                  67                 5% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
  AISC for Uis Tin     US$/t contained 
        Mine                  tin               27,515              27,879*             23,526              -16% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
                       US$/t contained 
 Tin Price Achieved           tin               38,604              45,050              34,367              -24% 
                     -------------------  ------------------  ------------------  ------------------  ---------------- 
 

* FY2022 Q4 AISC has been restated to account for realisation cost (Logistics, Smelter Costs and Royalties) on a production volume basis rather than a sales basis.

Phase 1 Expansion Project

The Phase 1 Expansion Project is on track for completion during Q3 of the current calendar year. The expansion is projected to increase tin production by approximately 60%. The main civil constructions work has been completed and steel construction work is currently in progress.

Glossary of abbreviations

 
 AISC   All-in sustaining costs 
 FY     Financial year 
       -------------------------------------------------------------------- 
 k t    K ilotonnes 
       -------------------------------------------------------------------- 
 Q oQ   Q uarter-on-quarter 
       -------------------------------------------------------------------- 
 t ph   T onnes per hour 
       -------------------------------------------------------------------- 
 UTMC   Uis Tin Mining Company (Pty) Ltd (operating entity of the Uis Mine) 
       -------------------------------------------------------------------- 
 W IP   W ork-in-progress 
       -------------------------------------------------------------------- 
 

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) 
                                -------------------------------------------------------------------------------------- 
 

* The Company's Financial Year runs from March to February. All reference to quarters applies to the financial year reporting period, unless stated otherwise.

 
 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 
 Emily Moss 
  Catherine Drummond 
  Adam Baynes 
 

About AfriTin Mining Limited

Notes to Editors

AfriTin Mining Limited is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, producing and exploration 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 Mine in Namibia to more than 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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