REG - Andrada Mining Ltd - FY Operational Update For Period Ended 28 Feb 2025

Andrada MiningAnnouncement

31/03/2025 07:15

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RNS Number : 8623C  Andrada Mining Limited  31 March 2025

 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")

Operational update for the period ended 28 February 2025

Annual increase in concentrate tonnage to 1 507 tonnes

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a tin producer with a
critical raw materials portfolio of mining and exploration assets in Namibia,
is pleased to provide an operational update for the fourth quarter ("Q4
FY2025" or the "Quarter") and 12 months ended 28 February 2025 ("FY2025").

HIGHLIGHTS
Operations

§ 244 314 tonnes processed in Q4 FY2025 (Q4 FY2024: 238 022 tonnes)

−   5.4% annual increase to 965 058 tonnes in FY2025 (FY2024: 915 599
tonnes)

§ 379 tonnes tin concentrate produced in Q4 FY2025 (Q4 FY2024: 371 tonnes)

−   2.2% annual increase to 1 507 tonnes in FY2025 (FY2024: 1 474 tonnes)

§ 228 tonnes contained tin produced in Q4 FY2025 (Q4 FY2024: 231 tonnes)

−   5.1% annual increase to 932 tonnes in FY2025 (FY2024: 885 tonnes)

§ 91% plant utilisation in Q4 FY2025 (Q4 FY2024: 89%)

−   5.0% annual increase to 89% in FY2025 (FY2024: 84%)

§ 70% tin recovery in Q4 FY2025 (Q4 FY2024: 72%)

−   3.0% annual increase to 72% in FY2025 (FY2024: 69%)

§ USD30 243 realised tin price per tonne in Q4 FY2025 (Q4 FY2024: USD26 125)

−   21.4% annual increase to USD31 081 in FY2025 (FY2024: USD25 593)

§ 17 shipments in Q4 FY2025 (Q4 FY2024: 14)

−   11.3% annual increase to 59 shipments in FY2025 (FY2024: 53)

§ 10.2 tonnes tantalum concentrate produced in Q4 FY2025 (Q4 FY2024: 5.1
tonnes)

−   Over 100% annual increase to 50.6 tonnes in FY2025 (FY2024: 6.5
tonnes)

Strategic

§ Unconditional approval from the Namibia Competition Commission ("NaCC") for
the SQM Australia (Pty) Ltd ("SQM") three-stage earn-in agreement for
development of Lithium Ridge

−   Company received the USD 1.5 million balance of the SQM participation
fee in March 2025

§ Secured USD2.5 million funding to procure a 100 tonnes per hour ("tph") jig
plant to enable the modular expansion of tin production from the proximal
pegmatites. Approximately 12% construction complete as at the end of February
2025

Financial

§ FY2025 C1¹ costs at USD21 023 per tonne of contained tin compared to
guidance figures of USD17 000 to USD20 000

§ FY2025 C2² costs at USD24 756 per tonne of contained tin compared to
guidance figures of USD20 000 to USD25 000

§ FY2025 all-in sustaining cost³ ("AISC") at USD29 755 per tonne of
contained tin compared to guidance figures of USD25 000 to USD30 000

§ Unaudited cash and cash equivalents balance on 28 February 2025 was GBP3.9
million (USD4.9 million) excluding the USD1.5 million from SQM that was
received post-period.

¹C1 refers to the operating cash cost per tonne of contained tin excluding
selling expenses and sustaining capital expenditure.

²C2 refers to C1 plus selling expenses such as logistics, smelting, royalties
and tantalum credits.

³All-in sustaining cost (AISC) incorporates all costs and expenses related to
sustaining production per tonne of contained tin; mining, processing,
engineering, overheads, stockpile movements, selling and tantalum credits.

Anthony Viljoen, Chief Executive Officer, commented:

"We have delivered on significant objectives this Quarter, including securing
approval for the SQM earn-in agreement. We continue to demonstrate steady and
sustainable growth across our tin operations, achieving higher tin concentrate
tonnage and increased shipments this Quarter. Our ongoing Continuous
Improvement programme continues to yield positive results, with processing
rates reaching 141 tph-the highest level of the past five quarters.

 

Finally, I am pleased to note that following receipt of the Namibian
Competition Commission approval, we are making solid progress with SQM in
forming a Board and Joint Development Committee for the Lithium Ridge project.
Both teams are focused on ensuring efficient progress. The advancement of this
lithium project is a key component of our long-term strategy to become a
producer of multiple critical minerals. It is highly encouraging to witness
the synergies that this partnership is bringing at such an early stage. We
look forward to providing updates in due course."

OPERATIONAL review
Tin production

Annual ore processed increased by 5.4% year - on - year ("YoY") to 965 058
tonnes and by 2.6% to 244 314 tonnes for the Quarter driven primarily by a
higher throughput rate. The plant processing rate for the Quarter was 141 tph,
up from 130tph in Q3 FY2025 and 137tph in Q4 FY2024 reflecting the positive
impact of the CI2 programme. The increased throughput contributed to the 2.2%
YoY increase in tin concentrate to 379 tonnes for the Quarter. The lower
recovery rate in Q4 FY2025 was due to the necessary plant optimisation
following the CI2 programme. Consequently, the contained tin tonnage was 1.3%
lower at 228 tonnes compared to the same quarter in FY2024. However, on an
annual basis, the higher recovery rate at 72% resulted in the 5.3% YoY
increase in contained tin tonnage to 932 tonnes (FY2024: 884 tonnes).

Plant availability and utilisation for the Quarter declined compared to Q3
FY2025 due to a one-off electricity outage on the national grid network.
Annual plant availability marginally improved to 92% (FY2024: 91%) due to
optimised maintenance. Similarly, the annual plant utilisation increased to
89%, driven by improved plant performance and, enhanced competencies from
intensive employee training. Additional CI2 programme benefits have been
enhancements to safety protocols in line with the improvements to the plant.

Table 1: Uis Mine unaudited tin concentrate production and cost figures
 Parameter              Unit   Q4 FY2024  Full year 2024  Q1 FY2025  Q2 FY2025  Q3 FY2025  Q4 FY2025⁴    Full year 2025
 Feed grade             % Sn   0.137      0.148           0.141      0.139      0.133      0.134         0.137
 Plant processing rate  tph    137        138             134        130        130        141           136
 Ore processed          t      238 022    915 599         237 976    243 528    239 240    244 314       965 058

 Tin concentrate        t      371        1 474           364        388        376        379           1 507
 Contained tin          t      231        885             233        239        232        228           932
 Tin recovery*          %      72         69              69         75         74         70            72
 Plant availability     %      89         91              89         91         91         88            92
 Plant utilisation      %      89         84              90         93         93         91            89
 C1 operating cost¹     USD/t  16 273     17 640          18 869     19 927     22 008     21 206        21 023
 C2 operating cost²     USD/t  18 775     20 173          23 422     24 662     25 486     24 948        24 756
 AISC³                  USD/t  26 616     26 223          28 775     27 931     30 779     29 576        29 755
 Tin price achieved     USD/t  26 125     25 593          30 839     31 937     31 266     30 243        31 081
 Number of shipments    #      14         53              16         12         14         17            59

*         Tin recovery includes stockpiles.

1        C1 refers to the operating cash cost per tonne of contained
tin excluding selling expenses and sustaining capital expenditure.

2        C2 refers to C1 plus selling expenses such as logistics,
smelting, royalties and includes tantalum credits.

3        All-in sustaining cost (AISC) incorporates all costs and
expenses related to sustaining production per tonne of contained tin; mining,
processing, engineering, overheads, stockpile movements, selling tantalum
credits.

4        Quarter costs exclude year-end adjustments

Tin expansion update

Andrada successfully secured USD2.5 million funding to procure a 100tph jig
plant to enable the modular expansion of tin production into the numerous
proximal pegmatites at Uis without disrupting the existing production. The
Company will expedite increased tin output through the jig plant. (See
announcement released on 12 February 2025). The strategic initiative to
procure additional production capacity was a response to the prevailing robust
tin price that can potentially enhance cashflows and profit margins in the
short to medium- term. The Company has also made the strategic decision to
re-engineer the front - end of the current tin processing plant in preparation
for the lithium integration circuit as it progresses the pre-concentrate
circuit.

Tantalum production

The YoY annual and quarterly tantalum concentrate production more than doubled
to approximately 51 tonnes and 10 tonnes, respectively. Similarly, contained
tantalum production increased to 5.4 tonnes in FY2025 and 1.1 tonnes in Q4
FY2025, driven primarily by the production ramp-up into Q1 FY2025. The
concentrate tonnage decreased in Q4 FY2025 compared to Q3 FY2025 due mainly to
temporary plant outages, which were successfully resolved within the Quarter.
Annually, the recovery rate improved significantly to 4.5% (FY2024: 0.6%),
benefiting from the reprocessing of previously produced concentrate.

Following the conclusion of its 12 - month supply agreement with Afrimet, the
Company is supplying concentrate to multiple customers while assessing
additional potential long-term off-takers. This diversified sales approach
enables the Company to optimise the pricing of concentrate sales across a
broader range of specifications.

Table 2: Tantalum production figures
 Parameter             Unit    Q4 FY2024  Full year 2024  Q1 FY2025  Q2 FY2025  Q3 FY2025  Q4 FY2025  Full year 2025
 Tantalum concentrate  tonnes  5.1        6.5             8.6        16.0       15.7       10.2       50.6
 Contained tantalum    kg      541        688             867        1 728      1 710      1 084      5 388
 Tantalum grade        %       10.7       10.6            10.0       10.8       10.9       10.6       10.7
 Tantalum recovery     %       1.9        0.6             3.2        5.5        5.7        3.6        4.5

Lithium development
Lithium Ridge

In February 2025, the Company received an unconditional approval from the NaCC
for the SQM partnership on developing the spodumene - dominant Lithium Ridge
project. The approval was the final outstanding condition precedent to
implementing the earn-in agreement. (See announcement released on 28 February
2025).

Lithium Pilot Plant

Approximately 46 tonnes and 128 tonnes of petalite were produced from Uis ore
for potential off-takers in the Quarter and FY2025 respectively. Engagement
with offtakers continued unabated in the Quarter as highlighted by a bulk
sample having been shipped to Japan.

FINANCial review

The C2 and AISC costs for the Quarter and FY2025 were within Company guidance
as disclosed in the table above. The annual C1 costs were marginally above
guidance mainly due to plant downtime related to the requisite maintenance on
the plant through-out the year as well as the electricity outage during the
Quarter.

Andrada entered into a USD2.5 million, six-month funding facility from LC
Abelheim Limited as a trustee of The Orange Trust, to facilitate the
construction of the jig (second) tin processing plant at the Uis mine. (See
announcement released on 12 February 2025). As of 28 February 2025, available
cash and cash equivalents excluding the SQM balance fee was GBP3.9 million
(USD4.9 million). The approval from NaCC triggered the release (post - period)
of the USD1.5 million balance owing from SQM in March 2025. The Company has
received approximately 11% of the outstanding VAT rebate of an estimated total
of GBP2.1 million (USD2.6 million) from the Namibian Revenue Agency.

Looking ahead, Andrada continues to engage with development agencies and debt
providers to secure funding for its value-accretive expansion projects.

 CONTACTS                                     +27 (11) 268 6555
 Andrada Mining Limited

Anthony Viljoen, CEO

 Sakhile Ndlovu, Head of Investor Relations

 NOMINATED ADVISOR & BROKER
 Zeus Capital                                  +44 (0) 20 2382 9500

Katy Mitchell

 Andrew de Andrade

 Harry Ansell

 CORPORATE BROKER & ADVISOR
 H&P Advisory Limited                         +44 (0) 20 7907 8500

Andrew Chubb

 Jay Ashfield

 Matt Hasson

 Berenberg                                    +44 (0) 20 3753 3040

Jennifer Lee

 Natasha Ninkov

 FINANCIAL PUBLIC RELATIONS
 Tavistock                                    +44 (0) 207 920 3150

Emily Moss

                                            andrada@tavistock.co.uk
 Josephine Clerkin

 
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 including tin, tantalum and lithium 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 become a leading African producer of critical metals
including tin, lithium, 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.

 

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