Aim-listed AfriTin’s performance for the financial year ended February 28 was one of strong operational delivery, which has resulted in the company considerably increasing production from the Uis mine, in Namibia, and generating its first group-wide profit, CEO Anthony Viljoen says.
“Our production at Uis has exceeded nameplate capacity by 12%, which is a testament to the operational excellence we have instilled in Namibia and puts the company in a good position to deliver our forthcoming further expansion initiatives,” he highlights.
Yearly tin concentrate production increased by 70% year-on-year to 804 t after ramp-up and expansion initiatives.
A definitive feasibility study was published for up to a 67% expansion on Phase 1 and AfriTin started construction on this project.
The company also advanced exploration and development into lithium and tantalum as potential by-products and it has publish a preliminary economic assessment for a possible Phase 2 expansion at Uis.
FINANCIAL PERFORMANCE
Revenue for the period was £13.6-million, up 178% year-on-year, driven by increased production and higher tin prices.
AfriTin recorded a maiden group profit before tax of £400 000, compared with a loss of £5.8-million in 2021.
There was also an increase in earnings before interest, taxes, depreciation and amortisation of 155% to £2.6-million.
AfriTin reported a loss after tax of £474 000.
The average tin price achieved for the year was $38 680/t.
Cash and cash equivalents at year-end was £7.4-million.
POST YEAR-END
Construction for the Phase 1 Expansion was completed, with commissioning scheduled to be complete by the end of September 2022.
Production is set to increase by up to 67% to 1 200 t/y of tin concentrate.
Also, a conditional, credit approved term sheet was signed with the Development Bank of Namibia to support the company’s growth strategy.
“Despite volatile global commodity markets this year, management and the board of directors remain confident that the market fundamentals for tin production will remain positive, giving AfriTin’s existing operations a relative competitive advantage in this supply-constrained environment.
“The addition of various growth initiatives, specifically the addition of lithium and tantalum production revenue streams, will further drive future value for the company. This should transition AfriTin to a multi-commodity producing technology metals group, which is tremendously exciting,” Viljoen says.