REG - Andrada Mining Ltd - Q3 Operational Update for Period Ended 30 Nov 24

Andrada MiningAnnouncement

20/12/2024 07:00

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RNS Number : 8456Q  Andrada Mining Limited  20 December 2024

 
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                              30 452     10%                     1%
                                                                          575]
 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                                     +27 (11) 268 6555
 Andrada Mining

Anthony Viljoen, CEO

 Sakhile Ndlovu, Head of Investor Relations

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

Katy Mitchell

 Harry Ansell

 Andrew de Andrade

 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 (United Kingdom)                   +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 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.

 

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