Aim-listed Andrada Mining has posted a bigger loss before interest, taxes, depreciation and amortisation for the year ended February 28 at £5.9-million, on the back of a 34% lower tin price.
The prior year’s loss amounted to £2.6-million.
The average tin price realised by Andrada for the 2023 financial year was $25 000/t, which compares with an average tin price of $39 000/t in the prior financial year.
The company’s tin concentrate production increased by 34% year-on-year to 960 t, while exports increased to 33 shipments, compared with 29 shipments in the prior year.
Processing plant production capacity also increased by 70% in the year under review.
The company managed to decrease its cash cost to $19 762/t owing to higher tonnages, compared with a cash cost of $21 839 in the 2022 financial year.
Andrada had £8.2-million of cash on hand at the end of February, and a cash balance of £8.6-million as of August.
The company would soon receive $25-million in funding to expedite its lithium implementation programme once approved by shareholders at an annual general meeting on September 29. The binding documentation for the conditional loan was signed in August.
Andrada also signed an intercreditor agreement with the Development Bank of Namibia in August, for N$100-million, or £5.3-million.
Moreover, Andrada raised £7.7-million, or $10-million, in July from unsecured convertible loan notes issued, to fund the completion and commissioning of a lithium pilot plant and tantalum circuit.
Andrada in June completed construction of an on-site lithium pilot plant.
The company’s Uis operation, which includes an existing tin mine and the on-site lithium pilot plant, is located in Namibia.
CEO Anthony Viljoen comments that Andrada achieved and, in certain instances, surpassed its operational milestones, including expansion of the Uis mine’s processing plant which has contributed to better cost efficiencies.
In turn, the 70% increase in production capacity has enabled Uis to deliver higher tin concentrate volumes, as evidenced by the 34% increase in production for the year.
He adds that the company also achieved additional milestones such as the production of high-purity saleable petalite in May, which has helped the company to escalate engagements with potential offtakers.
“As we progress into the 2024 financial year, the focus will be to expedite lithium development through the strategic process planned, the lithium pilot plant, and an extensive exploration programme. Our significantly strengthened balance sheet will enable us to achieve these and other major milestones in the new financial year,” Viljoen concludes.