Andrada Mining recorded a remarkable 34% increase in tin concentrate production during the year ended February 2023, attributed to the successful expansion of the Uis Mine.
The expansion of the Uis Mine has bolstered production capacity by 70%, resulting in a significant upswing in tin concentrate output, totalling 960 tonnes for the financial year.
Anthony Viljoen, the CEO of Andrada Mining, attributed the success to operational milestones achieved in FY2023, particularly the expansion of the Uis Mine processing plant, which led to improved cost efficiencies.
“This achievement coincides with the release of the company’s audited financial results for the fiscal year 2023, concluding on February 28, 2023. Andrada Mining reported noteworthy accomplishments in both financial and operational domains,” he said.
Financially, Andrada Mining reported a total revenue of N$182.77 million during the year, reflecting a decrease in tin prices compared to the previous year’s revenue of N$253.64 million.
Nevertheless, the company managed to reduce cash costs (C1) to N$369,130 per tonne of contained tin, down from N$410,305 in FY2022, primarily due to increased tonnage.
Additionally, the all-in sustaining cost decreased to N$466,613 per tonne of contained tin, down from N$513,388 in the previous year, also attributed to higher tonnage.
Despite these cost-saving measures, Andrada Mining reported an EBITDA loss of N$314.35 million for FY2023, compared to a loss of N$139.78 million in FY2022.
“This loss was primarily driven by a 34% decrease in the tin price, with the average tin price per tonne dropping to N$465,750, significantly lower than the previous year’s N$726,750 per tonne,” noted the report.
As of August 23, 2023, the company closed the fiscal year with cash and cash equivalents of N$152.6 million and an unaudited cash balance of N$160.39 million.
Meanwhile, operationally, Andrada Mining celebrated significant achievements during the period under review.
“The expansion of the Uis Mine processing plant resulted in a remarkable 34% increase in annual tin concentrate production, totaling 960 tonnes, compared to 780 tonnes in FY2022,” said the CEO.
He further added that export volumes also saw growth, with 33 shipments in FY2023, up from 29 shipments in the previous fiscal year.
One of the significant post-period highlights was the signing of a conditional funding package worth N$465.5 million (£25 million) in August 2023.
This funding is expected to accelerate the lithium implementation program, pending approval by shareholders at the Annual General Meeting on September 29, 2023.
Meanwhile, Andrada Mining secured a N$1.865 billion (£100 million) funding inter creditor agreement with the Development Bank of Namibia in August, with only the associated security package pending agreement completion.
“The issuance of unsecured, convertible loan notes raised £7.7 million (approximately N$143.05 million), primarily earmarked for funding the completion and commissioning of the lithium pilot plant and tantalum circuit in July 2023.
