Andrada Mining’s revenue increased 87% to N$207 million in the six months ended 31 August 2023 (H1 2024) compared to N$112 million reported in the comparable period.
According to its latest financial results for the half year under review, the company’s gross profit also experienced a remarkable turnaround, exceeding N$35 million, compared to the previous loss of N$23 million.
“Andrada experienced significant growth in H1 2024, driven by an increase in tin concentrate production which also resulted in an increase in contained tin compared to the interim period in the 2023 financial year (H1 2023),” the company said in its financials.
Meanwhile, the mine’s operating losses were reduced to N$59 million from N$83 million in the prior period. Andrada’s loss before tax also saw a significant decrease, settling at N$67 million, compared to the H1 2023 loss of N$88 million.
“This impressive performance is attributed to an increase in plant processing rate and an improvement in capacity utilisation, following the completion of the modular expansion of the crushing and tin concentration circuits in Q3 2023,” the report reads
The cost to produce each tonne of tin decreased to N$413,209 from N$523,721 in H1 2023.
Both the average C1 and C2 operating costs per tonne of tin followed management guidance, with C1 at N$434,526 and C2 at N$495,395.
The all-in-sustaining cost (AISC) per tonne of tin produced was below management guidance at N$588,596.
On the other hand, tin concentrate witnessed an impressive increase, reaching 758 tonnes compared to 455 tonnes in H1 2023.
Contained tin metal saw a substantial increase, totaling 454 tonnes, up from 287 tonnes in H1 2023.
The company further reported an unaudited cash balance of N$160 million on 31 August 2023.
The report also highlights Andrada’s feat in raising almost N$748 million in capital, with 188 million raised through convertible loan notes to fund expansion efforts in tin, tantalum, and lithium.
The miner said a funding injection of N$455 million from Orion Mine Finance (OMF) will go towards boosting the amount of tin produced at Uis Tin Mine as well as exploration drilling and metallurgical test work.
Similarly, the company concluded the N$100 million funding with DBN to expedite the implementation of the Uis Mine Stage II Continuous Improvement Project (CI2) in September 2023.
“The directors consider this DBN funding to be an essential component of the overall funding and development strategy. The proceeds will be used to implement improvements at Uis Mine to enhance the plant’s productivity and output,” the report reads.
The company reported a contribution of N$690 million to the Namibian economy through procurement, royalties, and taxes since inception. It further stated that in 2023, the company’s procurement outlay amounted to N$203 million through 225 Namibian suppliers, with 107 of them located within the Erongo region.
