Against the backdrop of the Covid-19 pandemic and maintaining the health and safety of employees as a priority, Aim-listed AfriTin delivered an impressive interim performance, CEO Anthony Viljoen says.
The company has continued to exceed production targets at the Uis tin mine, in Namibia, resulting in a marked increase in revenue during the period.
During the interim period, the operation of the Phase 1 pilot processing plant achieved production of 368 t of tin concentrate (227 t of contained tin), with 313 t of tin concentrate (199 t of contained tin) shipped to the company’s offtake partner Thaisarco, resulting in revenues of N$103.5 million.
This represents a 468% increase from the corresponding six-month period last year, with an average tin price achieved of US$33 794/t and a gross profit margin recorded of 22%.
With a firm focus on the Phase 2 operation, a key milestone on the company’s growth path was the publication in May of the definitive feasibility study (DFS) for the expansion of the Uis Phase 1 pilot processing plant.
The expansion project has since started with the ordering of long-lead items, the appointment of a project implementation team and engineering detailing to facilitate procurement and fabrication.
Post-period end, headline terms for a N$90-million (about £4.5-million) senior secured term loan were agreed with Standard Bank Namibia to finance the Phase 1 expansion.
AfriTin expects to complete the expansion of the Phase 1 pilot processing plant in the second quarter of 2022.
