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")
Q3 operational update for the period
ended 30 November 2024
15% increase in contained tin
production year-on-year
Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a critical
raw materials producer with a portfolio of mining and exploration
assets in Namibia, is pleased to provide an operational update for
the third quarter of the 2025 financial year ("Q3 FY2025" or the "Quarter") ended 30 November
2024.
HIGHLIGHTS
Operations
§ 5% Year-on-Year
("YoY") increase in ore
processed
- Q3
FY2025 to 239 240 tonnes (Q3 FY2024: 228 234 tonnes).
§ 15% YoY increase in
contained tin production
- Q3
FY2025 to 232 tonnes (Q3 FY2024 : 202
tonnes).
§ 8% YoY increase in
plant utilisation
- Q3
FY2025 at 93% (Q3 FY2024: 86%).
§ 12% YoY increase in
tin recovery
- Q3
FY2025 to 74% (Q3 FY2024: 66%).
§ 26% YoY
increase in realised tin price
- Q3
FY2025 to USD31 266 (Q2 FY2024: USD24 749).
§ Production of
approximately 16 tonnes of saleable tantalum concentrate at a grade
of 10.9% Ta₂O₅ during the
Quarter.
Financial
§ Average C1 operating
cash cost relative to management guidance of between USD17 000 and
USD20 000 per tonne of contained tin was:
-
USD22 008 for Q3 FY2025.
-
USD19 727 for the nine months ended 30 November
2024.
§ Average C2 operating
cash cost relative to management guidance of between USD20 000 and
USD25 000 per tonne of contained tin was:
- USD25
486 for Q3 FY2025.
- USD23
457 for the nine months ended 30 November 2024.
§ All-in sustaining
cost ("AISC") relative to
management guidance of between USD25 000 and USD30 000 per tonne of
contained tin was:
-
USD30 779 for Q3 FY2025.
- USD28
575 for the nine months ended 30 November 2024.
Anthony Viljoen, Chief Executive Officer,
commented:
"The improved operational
performance YoY in terms of production output, increased recovery
rate and plant utilisation are the great achievements for the
Company and can be directly attributed to the ongoing continuous
improvement programme ("CI2"). This underscores the
value-accretive nature of CI2 and its potential to transform
Andrada's operations. We remain strategically focused on improving
operational efficiencies, and expanding tin concentrate production,
with clear objectives to reduce operational costs and strengthen
the economic fundamentals of our tin operations. Despite anomalous
high costs figures recorded during this Quarter, impacted by
improvements in Uis's engineering protocols, we have remained
within cost guidance for the year to date, and are confident we
will meet full year guidance. We remain optimistic about the
global tin and lithium markets that seem posed for further price
increases as supply continues to be constrained. Andrada will be
well-positioned to benefit significantly from any upside as we
increase production in the upcoming year."
OPERATIONAL review
TIN
Ore processed increased by 5% to
239 240 tonnes YoY due to the increased crusher throughput
rate. The tonnage was marginally lower by 2% quarter-on-quarter
("QoQ") mainly due to
increased maintenance on the crushing section of the plant. The
utilisation of the contact ore with the primary ore continued,
whilst maintaining a grade in line with the reserve statement. The
plant processing rate was at 130 tonnes per hour ("tph"), compared to 138tph
in Q3 FY2024 and 130tph in Q2 FY2025, mainly due to the continued maintenance implemented on the
crushing circuit during the Quarter.
The increased plant throughput and
recoveries resulted in a 9% increase in tin concentrate and 15%
increase in contained tin production YoY to 376 tonnes and 232
tonnes, respectively. The lower QoQ output was mainly due to
processing of lower grade blended ore. The tin recovery rate, plant
utilisation and plant availability increased by 12%, 2% and 8%,
respectively due to the implementation of CI2 on the DMS1 circuit
and preventative maintenance. Although the recovery rate was 2%
lower QoQ due to the lower grade blended ore, the utilisation and
availability rates were flat.
Table 1: Uis Mine unaudited tin concentrate
production and cost figures
|
Description
|
Unit
|
Q1 FY2025
|
Q2 FY2025
|
Q3 FY2025
|
Q3 FY2024
|
Q3 FY2025 vs Q2
FY2025
|
Q3 FY2025 vs Q3
FY2024
|
|
Feed
grade
|
% Sn
|
0.141
|
0.139
|
0.133
|
0.141
|
-4%
|
-6%
|
|
Plant
processing rate
|
tonnes per
hour
|
134
|
130
|
130
|
138
|
0%
|
-6%
|
|
Ore
processed
|
tonnes
|
237
976
|
243
528
|
239 240
|
228
234
|
-2%
|
5%
|
|
Tin
concentrate
|
tonnes
|
364
|
388
|
376
|
346
|
-3%
|
9%
|
|
Contained
tin
|
tonnes
|
233
|
239
|
232
|
202
|
-3%
|
15%
|
|
Tin
recovery*
|
%
|
69
|
75
|
74
|
66
|
-1%
|
12%
|
|
Plant
availability
|
%
|
89
|
91
|
91
|
89
|
0%
|
2%
|
|
Plant
utilisation
|
%
|
90
|
93
|
93
|
86
|
0%
|
8%
|
|
Uis mine C1
operating cost¹
|
USD/t contained
tin
|
18
869
|
19
927
|
22 008
[YTD: USD 19
727]
|
18
917
|
10%
|
16%
|
|
Uis mine C2
operating cost²
|
USD/t contained
tin
|
23
422
|
24
662
|
25 486
[YTD: USD 23 457]
|
21
386
|
3%
|
19%
|
|
Uis mine
AISC³
|
USD/t contained
tin
|
28
775
|
27
931
|
30 779
[YTD: USD 28 575]
|
30
452
|
10%
|
1%
|
|
Tin price
achieved
|
USD/t contained
tin
|
30
839
|
31
937
|
31 266
|
24
749
|
-2%
|
26%
|
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, and is C1
plus selling expenses including logistics, smelting and royalties,
including tantalum credits.
3
All-in
sustaining cost (AISC) incorporates all costs related to sustaining
production; namely capital expenditure associated with developing
and maintaining the Uis operation, pre-stripping, waste mining
costs and includes tantalum credits.
*Tin recovery includes
stockpiles.
TANTALUM
Tantalum concentrate production was
relatively flat at approximately 16 tonnes during the Quarter. The
grade variability is due to blending of different batches. The
second quarter shipments were completed in the Quarter and there
were no additional shipments.
Table 2: Tantalum production
figures
|
Description
|
Unit
|
Q1 FY2025
|
Q2 FY2025
|
Q3 FY 2025
|
|
Tantalum
concentrate
|
tonnes
|
9
|
16
|
16
|
|
Contained
tantalum
|
tonnes
|
0.867
|
1.731
|
1.710
|
|
Tantalum
concentrate grade
|
%
|
10.03
|
10.80
|
10.87
|
|
Tantalum
recovery
|
%
|
3.2
|
5.5
|
5.7
|
FINANCial review
Cost overview
The quarterly costs were marginally
higher than guidance mainly due to the higher processing and
maintenance costs resulting from improvements in Uis's engineering
protocols.
The YTD costs for the nine months
ended 30 November 2024 were within guidance at USD19 727 for
C1; USD25 486 for C2 and USD28 575 for AISC. Management
believes that the costs will remain within guidance for the full
year. The available cash on 30 November 2024 was £2.6 million
(USD3.3 million) due to the one-off VAT payments for the
importation of equipment, metallurgical tests, technical study and
capex for the expansion programmes. The import VAT is not
accommodated within the available facility with Bank Windhoek;
therefore, the Company expects to receive a refund for most of the
VAT paid.
Furthermore , when the
approval from the Namibian Competition Commission on the Lithium
Ridge agreement is received , SQM will pay the outstanding USD1.5
million balance of the participation fee. Andrada is also
advanced in discussions with development agencies and debt
providers for expansion project capex, as stated in the interim
financial results released on 28 November 2024.
CONTACTS
Andrada Mining
Anthony
Viljoen, CEO
Sakhile
Ndlovu, Head of 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, and has 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.
