REG - Andrada Mining Ltd - Operational Update For Period Ended 31 May 2025

Andrada MiningAnnouncement

06/06/2025 07:00

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RNS Number : 7000L  Andrada Mining Limited  06 June 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 31 MAY 2025

Tin concentrate tonnage increases by 11% year-on-year and exploration
commences at Lithium Ridge

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a tin producer with a
critical raw materials portfolio of mining and exploration assets in Namibia,
hereby provides an operational update for the first quarter ended 31 May 2025
("Q1 FY2026" or the "Quarter").

HIGHLIGHTS
Operations

§ 7% increase Year - on - Year ("YoY") in ore processed in Q1 FY2026 to
254 745 tonnes (Q1 FY2025: 237 976 tonnes)

§ 11% increase in tin concentrate produced YoY in Q1 FY2026 to 405 tonnes (Q1
FY2025: 364 tonnes)

§ 2% increase in contained tin produced YoY in Q1 FY2026 to 238 (Q1 FY2025:
233 tonnes)

§ 3% increase in plant utilisation YoY in Q1 FY2026 to 93% (Q1 FY2025: 90%)

§ 6% increase in plant processing rate YoY in Q1 FY2026 to 142 tonnes per
hour (Q1 FY2025: 134)

§ USD32 993 realised tin price per tonne in Q1 FY2026 (Q1 FY2025: USD30 839)

§ 12.1 tonnes saleable tantalum concentrate produced in Q1 FY2026 (Q1 FY2025:
8.6 tonnes)

Strategic

§ The crushing circuit for the additional jig plant (see announcement dated
12 February 2025) has been delivered to Uis and production is targeted for the
second half of 2025 calendar year

§ The Joint Development Committee ("JDC"), has approved the Lithium Ridge
Stage 1 workplan and budget for exploration activities, which commenced in May
2025

Financial

§ Q1 FY2026 C1¹ costs at USD 18 901 per tonne of contained tin

−   Decreased by 11% Quarter-on-Quarter ("QoQ") compared to Q4 FY2025

§ Q1 FY2026 C2² costs at USD 24 139 per tonne of contained tin

−   Decreased by 3% QoQ compared to Q4 FY2025

§ Q1 FY2026 all-in sustaining cost³ ("AISC") at USD 28 999 per tonne of
contained tin

−   Decreased by 2% QoQ compared to Q4 FY2025

§ Average tin price per tonne increased by 9% QoQ and 7% YoY to USD 32 993

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:

"Andrada continues to demonstrate strong operational momentum and strategic
progress across all areas of the business, reinforcing our role as a key
enabler in the development of Namibia's critical minerals sector.

During the Quarter, we were delighted to see solid performance improvements at
our Uis operation supported by enhancements from our Continuous Improvement 2
programme, including upgrades to the DMS circuit. These modifications drove an
increase in processing rates and tin production, highlighting the growing
efficiency and reliability of our operations. Production of our increasingly
valuable byproduct tantalum improved notably, reinforcing our multi-mineral
offering. Operational cost performance improved overall, driven by ongoing
pro-active cost-reduction initiatives that are expected to enhance cashflows
over the course of the year. This includes the completion of a group-wide
corporate restructuring, which is expected to further rationalise the cost
base and strengthen overall profitability.

Construction of the new jig plant is advancing well, with the front-end
crushing circuit delivered to Uis and fabrication of key components underway.
As we look ahead, Andrada remains focused on operational excellence,
disciplined capital deployment, and the strategic development of our
diversified critical minerals portfolio."

OPERATIONAL review
Tin production
Ore processed during the Quarter totalled 254 745 tonnes, representing a 7% increase YoY and a 4% increase QoQ. This improvement was driven by plant enhancements implemented under the Continuous Improvement 2 ("CI2") programme, notably the Dense Media Separation circuit ("DMS") modifications and the installation of new shaking tables. Processing throughput rose to an average of 142 tonnes per hour for the Quarter, reflecting gains in operational efficiency attributed to the CI2 initiatives. The average feedstock grade was 0.136% tin, which is 4% lower YoY, primarily due to the use of blended ore. The grade however, showed a 2% improvement over Q4 FY2025. Despite the slightly lower grade YoY, the increased ore throughput contributed to a 11% YoY and 7% QoQ increase in tin concentrate production, reaching 405 tonnes for the Quarter. As a result, contained tin production increased to 238 tonnes. The plant's utilisation rate improved, largely due to reduced maintenance-related downtime and further efficiency gains achieved through the CI2 programme.
Table 1: Uis Mine unaudited tin concentrate production and cost figures
 Parameter              Unit   Q4 FY2025⁴    Q1 FY2025  Q1 FY2026
 Feed grade             % Sn   0.134         0.141      0.136
 Plant processing rate  tph    141           134        142
 Ore processed          t      244 314       237 976    254 745

 Tin concentrate        t      379           364        405
 Contained tin          t      228           233        238
 Tin recovery*          %      70            69         69
 Plant availability     %      88            89         88
 Plant utilisation      %      91            90         93
 C1 operating cost¹     USD/t  21 206        18 869     18 901
 C2 operating cost²     USD/t  24 948        23 422     24 139
 AISC³                  USD/t  29 576        28 775     28 999
 Tin price achieved     USD/t  30 243        30 839     32 993

*         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
Jig plant
Construction of the new jig plant is progressing well, marking a significant milestone in the Company's tin expansion strategy. The front-end crushing circuit has been successfully delivered and commissioned at Uis. Other components of the plant are currently either under fabrication or enroute to Uis and civil work has been completed. Initial production is targeted to commence in the second half of the 2025 calendar year, aligning with project timelines and supporting the Company's growth objectives.
Pre - concentration circuit
The Metso crushers and ore sorters have been successfully delivered to Uis, and the construction design for the pre-concentration circuit is complete. Installation and commissioning are pending, as the Company continues to re-assess and re-engineer the front end of the existing tin processing plant to enhance efficiencies.
Tantalum production

Tantalum operations delivered a notable improvement in performance during the
Quarter, driven by a higher feed grade and the reprocessing of
off-specification material. As a result, approximately 12 tonnes of
concentrate with 1.4 tonnes of contained tantalum were produced. Of this, 10
tonnes of concentrate were shipped to Afrimet during the period, reflecting
ongoing offtake execution and consistent production delivery.

Table 2: Tantalum unaudited production figures
 Parameter             Unit    Q1 FY2025  Q4 FY2025  Q1 FY2026
 Tantalum concentrate  tonnes  8.6        10.2       12.1
 Contained tantalum    kg      867        1 084      1 385
 Tantalum grade        %       10.0       10.6       11.4
 Tantalum recovery     %       3.2        3.6        5.3

Lithium development
Lithium Ridge
Following the successful creation of the JDC as outlined in the earn-in agreement with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd ("SQM"), the workplan and budget for Stage 1 development of Lithium Ridge, have been finalised, triggering the drawdown of the USD 7 million funding facility to support extensive exploration and drilling activities (see announcement dated 9 September 2024). Exploration commenced in May 2025, marking a key milestone in the project. Senior management teams from both SQM and Andrada conducted a joint site visit to Lithium Ridge in May 2025, reinforcing the strategic collaboration and commitment to advancing the project.

 

 

SQM and Andrada management teams at Lithium Ridge in May 2025. Right-hand
photo shows Andrada CEO, Anthony Viljoen (L) and SQM International Lithium
CEO, Mark Fones carrying a spodumene crystal at Lithium Ridge (Namibia).

Lithium Pilot Plant
Engagements with prospective offtakers remain active, and commercial discussions are progressing constructively, despite the challenging pricing environment.
FINANCial review

Operational cost performance improved in Q1 FY2026 compared to Q4 FY2025,
primarily driven by increased production volumes and ongoing cost control
measures across the Group. The 3% increase in C2 costs was attributable to a
higher tin royalty rate applied during the quarter. In response, the Company
has implemented cost-reduction initiatives across the group operations, which
are expected to support improved cashflows as the financial year progresses.

 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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