Andrada Mining says it has completed its first commercial shipment of five tonnes of tantalum concentrate to AfriMet Resources, marking the company’s entry into the tantalum market and positioning it as a multi-mineral producer.
The news comes alongside a 14% increase in Andrada’s tantalum production quarter-over-quarter (QoQ) from approximately eight tonnes in Q4 FY2024 to nine tonnes in Q1 FY2025,
“The successful production and delivery of our first five-tonne consignment of tantalum to AfriMet during the quarter is an important milestone for the Company,this places us firmly on the path to becoming a multi-mineral producer of critical metals,” said Andrada’s Chief Executive Officer Anthony Viljoen
He further explained that the surge in tantalum production aligns with a favourable market trend. Tantalum prices have been steadily rising since mid-May 2024 due to supply constraints caused by disruptions in key mining areas of the Democratic Republic of Congo. Additionally, increased purchasing interest from smelters is expected to further support these elevated prices, he said
Looking ahead, Andrada anticipates a second tantalum concentrate shipment, targeting a further five tonnes, to AfriMet in the coming quarter. The Company is confident that this supply agreement with AfriMet will be a successful and long-term partnership. This development comes amidst a period of significant operational growth for Andrada.
The Company recently reported a 10% YoY increase in ore processed for tin production of 237,976 tonnes in Q1 FY2025 vs 217,189 tonnes in Q1 FY2024,alongside progress on its pre-concentration circuit expansion project targeted for completion in Q1 CY2025.
The lithium pilot plant has primarily focused on bulk sampling campaigns with limited commercial production during the quarter. However, Andrada is planning for future commercial petalite production through an extension circuit that will be integrated with the existing tin processing plant upon completion of the pre-concentration circuit.
Furthermore, Andrada has initiated a strategic process to explore potential partnerships across its entire portfolio of mineral assets.
Andrada maintained its cost guidance despite a YoY increase in cash cost to N$337,588.30 (US$18,899) per tonne of contained tin and selling expenses to N$418,917.45 (US$23,452) per tonne.
This increase is attributed to a combination of processing costs and inflationary mining cost increases, along with a one-off expense from resolved plant outages.
The All-in Sustaining Cost (AISC), remained lower than expected at N$513,983.06 (US$28,774) per tonne due to an improved stripping ratio of 1.5:1 achieved at the end of May 2024
Meanwhile,Andrada is finalising a N$175 million (GBP7.6 million) loan agreement with Bank Windhoek Limited (BWL) to support general working capital needs and ongoing exploration activities.
The Company is also exploring additional funding options with global lenders for project execution.
To mitigate price volatility in the tin market, the company entered into a hedging agreement with Standard Bank Namibia Limited, fixing the price for the first 20 tonnes of contained tin shipped every month from June 2024 to May 2025 at N$589,471.08 (US$33,000) per tonne.
