Andrada Mining is targeting a 50% to 70% increase in processing tonnage as it advances an ore sorting project and expands its tin, lithium, tungsten, tantalum and copper portfolio in Namibia.
Chief Executive Officer Anthony Viljoen said the ore sorting project, expected to come online during the first half of next year, will form a key part of the company’s next phase of growth alongside upgrades to its existing operations.
The company has spent the past nine years developing a portfolio of former mining assets in Namibia’s Erongo Region, with its producing Uis mine providing the operational base for expansion into other critical minerals.
While tin remains the foundation of Andrada’s operations, the company has identified lithium and tantalum within its polymetallic deposits, while exploration at Brandberg West has identified tungsten and copper associated with historically mined tin.
Andrada’s portfolio currently includes its Uis production operation, the Lithium Ridge project and Brandberg West.
“Within that portfolio, within the geology within Namibia, we’ve got what we believe are three pre-eminent critical minerals assets, underpinned by solid operational cash-flow generation at Uis,” Viljoen said.
“We’ve opened up a whole new minerals district in one of the best mining jurisdictions in Africa, and we’re excited about where we are as a company at the moment.”
Viljoen said Andrada’s financial position had improved significantly, with the company moving from an operating cash outflow of about N$87 million (£4 million) in the previous year to operating cash generation of approximately N$102 million (£4.7 million).
He said the latest financial results were based on a tin price of around N$593,850 (US$37,000) per tonne, while most of the company’s shipments this year have been booked at between N$834,600 (US$52,000) and N$882,750 (US$55,000) per tonne.
“So, we’re making cash,” Viljoen said, adding that he expects the company’s interim results to show a significantly different financial position as higher tin prices feed through.
Andrada also booked a loss of about N$113 million (£5.2 million) on a hedging instrument required under its banking facility. Viljoen said the impact is expected to reverse as the year progresses and higher commodity prices are reflected in the company’s results.
The company has also faced higher operating costs linked to accelerated waste stripping at its open pit, increased fuel costs and higher smelter charges.
Viljoen said these pressures were temporary and expected to moderate over time.
The planned ore sorting project is expected to provide the next major production uplift, with Viljoen saying the project and associated upgrades could increase tonnage by between 50% and 70% once operational.
