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Highlights:
- Stable Tin Production: Andrada Mining reported consistent tin production of 239 tonnes at its Uis mine.
- Improved Financials: Cash costs fell slightly, and realised tin prices rose 27% to $31,937 per tonne.
- Lithium Progress: Achieved first commercial petalite sale and is advancing plans for a lithium processing circuit.
Andrada Mining Ltd (LSE:ATM) reported steady tin production from its Uis mine in Namibia during the latest quarter, aided by improvements in plant utilisation and processing efficiency. For the three months ending August 2024, the company recorded a contained tin production of 239 tonnes, a slight increase from 238 tonnes in the previous quarter. This consistent output was accompanied by a notable increase in realised tin prices, which jumped by 27% to $31,937 per tonne, reflecting stronger market conditions.
The company’s cash costs for the quarter came in marginally lower at $19,400 per tonne. Additionally, Andrada ended the period with a cash balance of £8.2 million, providing financial stability as it continues to optimise its mining operations and expand its project pipeline.
Chief Executive Anthony Viljoen highlighted the ongoing operational enhancements at the Uis mine. "We continue to improve our performance by optimising processes, which is evident in higher plant utilisation rates and consistent tin tonnage,” he stated. The company’s exposure to higher-grade ore at Uis has also allowed it to expedite bulk sampling for lithium, paving the way for further developments in its diversified resource portfolio.
Andrada’s recent focus has not only been on tin but also on leveraging the potential of its lithium resources at Uis. The company achieved a significant milestone during the quarter by completing its first commercial sale of petalite concentrate, a lithium-bearing mineral. Viljoen described the sale as a validation of the Uis mine's broader lithium potential, noting that it opens up new commercial avenues and strengthens Andrada’s strategic positioning in the critical minerals market.
The company is now advancing further testwork to refine the integration of a dedicated lithium processing circuit. This initiative is aimed at optimizing the extraction and commercialisation of lithium minerals alongside its primary tin operations. The ongoing test results will play a crucial role in informing Andrada’s future development strategy and support efforts to secure off-take agreements for the petalite concentrate.
Looking ahead, Andrada is focused on maintaining steady production, optimising operational efficiency, and advancing its lithium initiatives. With the first successful petalite sale completed, the company is well-positioned to expand its footprint in the growing lithium market, which is seeing rising demand due to its critical role in battery manufacturing and energy storage solutions.
