REG - AfriTin Mining Ltd - Quarterly Production Update

Andrada MiningAnnouncement

16/06/2022 07:00

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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 Quarterly Average (Mar 2021 - Feb 2022)  Q4 FY2022 Actual        Q1 FY2023 Actual        QoQ Performance

                                                                                                           (Dec 2021 - Feb 2022)   (Mar 2022 - May 2022)   (% Change)
 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 Mine         US$/t contained tin  27,515                                                 27,879*                 23,526                  -16%
 Tin Price Achieved            US$/t contained 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
 kt    Kilotonnes
 QoQ   Quarter-on-quarter
 tph   Tonnes per hour
 UTMC  Uis Tin Mining Company (Pty) Ltd (operating entity of the Uis Mine)
 WIP   Work-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                     +44 (0) 20 7907 8500

 Andrew Chubb

 Jay Ashfield

 Nilesh Patel
 Stifel Nicolaus Europe Limited           +44 (0) 20 7710 7600

 Ashton Clanfield

 Callum Stewart
 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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