Andrada Mining Limited (Andrada), a critical raw materials producer operating in Namibia, reported a 22% increase in revenue for the six months ending 31 August 2024.
The miner’s revenue rose to £10.8 million (N$207 million), compared to £8.9 million (N$170.6 million) during the same period last year, driven by operational improvements and increased production efficiency.
“Our focus remains on long-term growth, despite the short-term financial impact of high capital expenditure. These investments will yield significant benefits in the coming financial year and solidify our platform for sustainable success,” said Andrada’s Chief Executive Officer Anthony Viljoen.
He noted that the company’s gross profit surged by 70% to £2.6 million, while its operating loss narrowed by 42% to £1.5 million.
“However, net losses grew to £3.2 million, primarily due to finance expenses related to convertible note obligations settled in shares. Administrative costs increased slightly to £4.1 million, reflecting strategic initiatives, including UTMC restructuring and Bank Windhoek funding,” he added.
Meanwhile, Andrada’s Stage II Continuous Improvement (CI2) Programme delivered a boost in tin recovery rates, reaching 72% compared to 65% in the same period last year.
Contained tin metal production increased marginally to 462 tonnes, supported by improved maintenance practices and plant upgrades.
Ore processing volumes rose by 8% year-on-year to 481,504 tonnes, reflecting the company’s enhanced operational stability.
Andrada also launched a pre-concentration project at the Uis Mine to improve tin grades and output, targeting an annual production of 1,600 tonnes of contained tin.
The CEO said these efforts are complemented by a toll treatment programme, which leverages high-grade tin ore from regional producers.
“The CI2 Programme and pre-concentration initiatives underscore our commitment to operational efficiency and output maximisation. Together with toll treatment, these projects will enhance our production pipeline and bolster our position as a leading tin producer,” Viljoen added.
To support its expansion initiatives, Andrada secured N$175 million (approximately £7.5 million) in financing from Bank Windhoek.
This funding, along with income from tin and tantalum sales and a post-period agreement with SQM, ensures liquidity for the next 12 months. The proceeds have been allocated to retiring existing facilities, growth initiatives, and working capital.
“The combination of secured funding and strategic partnerships supports our growth ambitions while contributing to Namibia’s economic development. This positions Andrada as a critical player in the country’s mining sector,” Viljoen emphasised.
Available cash as of 31 August 2024 stood at £6.1 million, excluding £2.1 million in undrawn facilities.
He said management is optimistic about securing additional strategic partnerships and funding to advance its capital projects.
“With robust financial planning and ongoing operational initiatives, Andrada is well-prepared to meet market demands and achieve sustainable growth. Our efforts are focused on expanding critical metals production while reducing costs and maximising efficiency,” Viljoen said.
