TIDMATM
RNS Number : 8686D
Andrada Mining Limited
26 June 2023
26 June 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information will be in the
public domain.
Andrada Mining Limited
("Andrada" or the "Company")
First quarter operational update for the period ended 31 May
2023
42% increase in contained tin volume year-on-year as costs
remain below guidance.
Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the African
technology metals mining company with a portfolio of mining and
exploration assets in Namibia hereby provides the unaudited
operational update for the Company for its first quarter for the
period ended 31 May 2023 ("Q1 2024").
HIGHLIGHTS
OPERATIONS
-- Improved safety performance to 0.95 LTIFR for 881 808 Lost
Time Injury (LTI) free hours.
-- Fifty percent (50%) year-on-year ("YoY") increase in tin
concentrate to 359 tonnes (Q1 2023: 239).
-- Forty-two percent (42%) YoY increase in contained tin metal
to 216 tonnes (Q1 2023: 152).
LITHIUM DEVELOPMENT
Testing programme
-- First saleable bulk lithium concentrate produced from Bond
Equipment (mineral processing specialists), South Africa through
dense medium separation ("DMS"), consisting of 85% pure petalite at
a grade of 4.16 % Li(2) O.
-- The petalite concentrate is being tested by potential
industrial offtakers and for conversion to lithium carbonate and
lithium hydroxide.
-- Construction of the on-site bulk-sampling pilot plant on
budget and on time for completion at the end of June 2023, with
commissioning anticipated in July 2023.
-- Andrada is exploring early lithium revenues during the second
half of the 2023 calendar year ("CY 2023") through petalite
production from the pilot plant at Uis.
Exploration programme
-- Confirmatory drilling in the Uis Southern Cluster pegmatites
to upgrade historic resources on proximal pegmatites is
ongoing.
-- Drilling of seventeen holes on ML129 ("Spodumene Hill")
licence area completed in April 2023 with all holes intersecting
mineralised pegmatite. The assay results are being finalised and
will be released as soon as they are available.
-- Infill mapping and channel sampling along strike of drill
targets on the ML133 licence area ("Lithium Ridge") completed in
May 2023, and the initial assay results expected in July 2023.
FINANCIAL
-- Average C1(1) operating cash costs below management guidance
for the year of between USD17,000 and USD20,000 per tonne of
contained tin at, USD15,741 (see announcement dated 20 March
2023).
-- Average C2(2) operating costs below management guidance for
the year of between USD20,000 and USD25,000 per tonne of contained
tin at, USD18,235 (see announcement dated 20 March 2023).
-- All-in sustaining cost(3) ("AISC") below management guidance
for the year of between USD25,000 and USD30,000 per tonne of
contained tin at, USD21,377 (see announcement dated 20 March
2023).
-- As announced on 5 June 2023, Andrada has executed the
documentation for the Development Bank of Namibia ("DBN") USD5.5
million finance facility. Completion is subject to satisfaction of
certain conditions which together with the associated drawdown is
expected in July 2023. Further updates will be provided at that
time.
CORPORATE
-- Strategic partner process ongoing (see announcement 11 May
2023).
-- OTCQB(R) trading commenced on 5 June 2023, providing access
to a wider North American investor base.
Anth ony Viljoen, Chief Executive Officer, commented:
"The milestones achieved during the quarter have laid the
necessary foundation for the accelerated growth we expect for the
balance of the financial year. We have demonstrated the ability to
produce saleable lithium concentrate. The completion of our on-site
bulk-sampling plant remains on track for completion this month and
will expedite the metallurgical testwork required to bring lithium
revenues onstream.
The on-going strategic process to identify a partner for the
lithium development is going well and will transform Andrada from
being a fledging developer to a fully-fledged miner of technology
metals. We have been encouraged by the level of interest from
potential lithium partners globally and are confident of being able
to conclude an attractive transaction for shareholders and broader
stakeholders this year.
We are pleased with the significant efficiencies achieved with
the increased production of tin concentrate and the
lower-than-expected cash cost increases QoQ. We are committed to
keeping costs within the lower range of our guidance. The
completion of the tantalum circuit will introduce the initial
by-product and enable Andrada to fully harness the additional
revenue.
Finally, in securing the funding from DBN, we are confident that
we have made significant strides in completing the requisite steps
to drawdown the funds in July. The combination of the DBN funding,
operational cashflows and the outcome of the strategic process will
enable us to expedite the development of the lithium revenue
stream.
OPERATIONAL SUMMARY
Table 1: Uis Mine quarterly production and cost performance
(unaudited)
Description Unit Q1 FY Q4 FY Q1 FY YoY % QoQ %
2023 2023 2024 <DELTA> <DELTA>
Feed grade % Sn 0.149 0.154 0.151 +1% - 2%
------------ -------- -------- -------- --------- ---------
Plant processing
rate tph 99 125 135 +36% +8%
------------ -------- -------- -------- --------- ---------
Ore processed t 152 243 196 982 214 467 +41 % +9 %
------------ -------- -------- -------- --------- ---------
Tin concentrate t 239 361 359 +50% - 1%
------------ -------- -------- -------- --------- ---------
Contained tin t 152 214 216 +42% +1%
------------ -------- -------- -------- --------- ---------
Tin recovery % 67 71 67 0 - 6%
------------ -------- -------- -------- --------- ---------
Plant availability % 89 90.4 91.3 +3% 1%
------------ -------- -------- -------- --------- ---------
Plant utilisation % 78 81.1 79.3 +2% - 2%
------------ -------- -------- -------- --------- ---------
US$/t
Uis mine C1 contained
operating cost(1) tin 17 624 14 761 15 741 -11% + 7%
------------ -------- -------- -------- --------- ---------
US$/t
Uis mine C2 contained
operating cost(2) tin 20 989 17 303 18 235 -13% + 5%
------------ -------- -------- -------- --------- ---------
US$/t
contained
Uis mine AISC(3) tin 23 526 18 236 21 377 -9% +17 %
------------ -------- -------- -------- --------- ---------
US$/t
contained
Tin price achieved tin 34 367 25 265 25 149 -27% -1%
------------ -------- -------- -------- --------- ---------
(1)C1 refers to operating cash costs per unit of production plus
selling expenses.
(2) C2 operating cash cost is the C1 including selling expenses
(logistics, smelting and royalties), it excludes sustaining capital
expenditure associated with Uis Mine.
(3)All-in sustaining cost incorporates all costs related to
sustaining production as well as the capital expenditure associated
with developing and maintaining the Uis operation, including
pre-stripping waste mining costs.
Improved safety performance
There were no recorded LTI incidents during the quarter. The
operations safety record continued to improve over the quarter from
LTIFR of 1.98 for 500 000 LTI free hours in March to a LTIFR of
0.95 for 881 808 LTI free hours in May 2023. The significant
improvement in safety has been through a concerted effort to
implement training and regular drills to ensure that all employees
observe the safety rules.
Higher volumes, lower costs YoY
First quarter ("Q1 2024") tin concentrate production increased
by 50% to 359 tonnes resulting in a 42% increase in contained tin
to 216 tonnes YoY. The plant processing rate increased by 8% QoQ to
135 tph and by 36% YoY as the plant achieved steady state
production following the modular expansion during Q4 2023. The
significantly higher YoY tonnage output resulted in comparatively
lower cash costs and AISC as illustrated in Table 1.
However, Q-o-Q compared to Q4 2023, the costs increased due to
the marginal increase in the contained tin volume. The increase
reflects the higher average stripping ratio of 2.3 (Q4 2023: 1.4)
due to the requisite pushback as announced in the Q4 2023
operational update released on 20 March 2023. Despite the QoQ
increases, the cash costs and AISC were all below the management
guidance provided on 20 March 2023 due to the absence of the Orion
royalty and improved efficiencies. The royalty is related to the
proposed financing and is not included due to delays in its
execution as in the update below. Management will focus on
commissioning the pilot plant, tantalum circuit and on improving
the overall plant utilisation rate in the next quarter.
Photo of the tantalum circuit on the right, adjacent to the
processing plant: 20 June 2023
LITHIUM DEVELOPMENT & METALLURGY UPDATE
Initial saleable lithium concentrate produced through DMS.
As announced on 22 May 2023, Andrada produced its initial
saleable lithium concentrate through DMS processing of bulk samples
from the Company's Lithium Ridge licence (ML 133). The bulk sample
for this pilot test had a head grade of 1.50% Li(2) O resulting in
an 85% pure petalite at a grade of 4.16% Li O. The petalite
concentrate test work with potential offtakers has commenced with
provisional completion of an offtake agreement targeted for the
third quarter of CY 2023. Further updates will be provided in due
course.
Flotation testwork
Testing of the Uis bulk sample is progressing at Nagrom, a
mineral processor based in Australia, with process optimisation and
mineralogical analysis underway. The flotation test work at
Anzaplan, a metals specialist in Germany, on pre-concentrated
samples has consistently achieved technical grade, and the testing
of alternative reagent regimes is ongoing. As indicated in the
announcement released on 22 May 2023, flotation of petalite may be
necessary in sections of the ore body that indicate a lithium grade
of less than 1.0% Li O, as well as for areas where milling is
required for optimal petalite liberation.
Sensor-based ore sorting
Test work with Tomra and Steinert has confirmed the potential of
NIR for pre-concentration of petalite which provides Andrada with
additional processing options for consideration for its planned
lithium expansion.
Bulk sampling pilot plant construction update
Construction of the on-site (lithium) bulk-sampling pilot plant
is on schedule and on budget for completion at the end of June
2023. Management have internally estimated that this facility could
generate annual early revenues of between USD5 million to USD20
million at the upper levels of production assuming an average grade
of 4.0% Li(2) O and an average petalite price of USD2,000 per
tonne.
Photo of the bulk- sampling plant adjacent to the tantalum
circuit and processing plant: 20 June 2023
EXPLORATION PROGRESS UPDATE
Mining licence 134: Uis Southern Cluster
Confirmatory drilling over the Uis Southern Cluster commenced in
February 2023 with the aim of validating the historical drill holes
and increasing the Mineral Resource Estimation classification for
tin . The drilling campaign will also provide initial information
on the lithium and tantalum mineralisation within these pegmatites.
The programme is progressing steadily with additional contractors
being mobilised to increase the rate of drilling. The results of
this drilling will be released as soon as the associated assays are
returned from the laboratory.
Mining licence 129: Spodumene Hill
All 17 diamond drill holes within this programme (see
announcement dated 20 March 2023) appear to have intersected
mineralised pegmatite with visual confirmation of spodumene
crystals and appreciable quantities of tin and tantalum oxides. The
results of this drilling programme will be released as soon as the
associated assays are returned from the laboratory.
Mining licence 133: Lithium Ridge
The first-pass Reverse Circulation ("RC") drilling programme on
Lithium Ridge to investigate the subsurface continuation of
lithium, tin and tantalum mineralisation along the pegmatites which
are enriched in lithium at surface commenced in April 2023.
Approximately 1 000 RC drill samples have been shipped for
preparation and analysis at UIS Analytical, an accredited
laboratory in South Africa. The infill channel sampling and
high-resolution geological mapping to enhance data resolution and
to confirm the continuity of lithium mineralisation along an
identified strike length of 6km was completed in May 2023. The
results of this drilling programme will be released as soon as the
associated assays are returned from the laboratory.
FINANCE
Development Bank of Namibia ("DBN") funding
As per the announcement on 5 June 2023, Andrada executed the
contractual documentation for the N$100 million (US$5.5 million)
senior secured debt facility with the DBN ("the Facility"), as
anticipated. Completion of the Facility remains subject to a series
of final conditions including the execution of an inter-creditor
agreement between the DBN and Standard Bank (which has been agreed
in principle) and finalisation of the associated security
package.
Management expects the completion, and associated drawdown
during July 2023, as informed by the significant progress in
concluding the inter-creditor agreement in June 2023. Further
updates will be provided in due course.
Orion Resource Partners ("Orion") US$25 million financing
The conclusion of the US$25m funding facility with Orion,
detailed in the announcement dated 15 September 2022 remains
subject to the finalisation of an intercreditor agreement between
Orion and the senior lenders DBN and Standard Bank. Although the
conclusion of the financing cannot be guaranteed, there has been
progress is the negotiations between all parties and further
updates will be provided in due course.
Cash balance
The combined cash and cash equivalent balance on 31 May 2023 was
USD 3.1 million (GBP2.5 million). During the quarter the available
funds were mainly utilised for the completion of bulk-sampling
pilot plant and tantalum circuit.
CORPORATE
Strategic process update
The strategic process to identify the appropriate partner to
participate in the lithium development is progressing as planned
with site visits to Uis mine by interested parties completed. The
entire strategic process is targeted to conclude at the end of
September 2023.
OTCQB(R) upgrade completed.
Andrada qualified to trade on the OTCQB(R) Market (an American
financial market) from 5 June 2023. The trading of the Company's
ordinary shares on AIM, a market of the London Stock Exchange, and
on the Namibian Stock Exchange, remain unaffected by this
additional listing. The access to a wider North American investor
market is expected to improve the liquidity of the shares.
Glossary of abbreviations
AISC All in sustaining cost
FY Financial year for the period March to April
---------------------------------------------
GBP British pound sterling
---------------------------------------------
LTI Lost time injury
---------------------------------------------
LTIFR Lost time injury frequency rate
---------------------------------------------
NIR Near-infra-red (ore sorting)
---------------------------------------------
Sn Symbol for tin
---------------------------------------------
t Tonnes
---------------------------------------------
tph Tonnes per hour
---------------------------------------------
Glossary of terms
AISC Incorporates all costs related to sustaining production. Includes the sustaining capital
expenditure
associated with developing and maintaining the Uis operation such as unaudited stripping waste
mining costs.
OTC QB (R) The OTC Market is an Established Public Market by the U.S Securities and Exchange Commission,
operated by OTC Markets Group. The OTC QB (R) Market particularly aims to support
entrepreneurial
and development stage companies such as Andrada to efficiently build investor awareness and
provide U.S investors with a seamless trading facility, enabling investors to trade through
the broker of their choice more easily.
-----------------------------------------------------------------------------------------------
Andrada Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Sakhile Ndlovu, Head of Investor Relations
Nominated Adviser +44 (0) 207 220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Matt Hasson +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart
Varun Talwar +44 (0) 20 7710 7600
Tavistock Financial PR (United Kingdom)
Emily Moss
Catherine Drummond
Adam Baynes +44 (0) 207 920 3150
_______________________________________________________________________________________
About Andrada Mining Limited
Andrada Mining Limited, formerly Afritin Mining Limited, is a
London-listed technology metals mining company with a vision to
create a portfolio of globally significant, conflict-free,
production and exploration assets. The Company's flagship asset is
the Uis Mine in Namibia, formerly the world's largest hard-rock
open cast tin mine.
Lithium laboratory test work completed during the 2022 calendar
year indicated a high-grade, ultra-low iron lithium petalite
concentrate. The test work to convert lithium petalite concentrate
to battery-grade lithium hydroxide was initiated with Nagrom, a
leading Australian processing company, and commercial engagements
with lithium petalite concentrate off - takers are on-going. An
exploration drilling programme is currently underway with the aim
of expanding the tin resource over the fourteen additional,
historically mined pegmatites, all of which occur within a 5 km
radius of the current processing plant. The Company has set a
mineral resource target of 200 Mt to be delineated within the next
5 years. The substantial mineral resource potential allows the
Company to consider economies of scale.
Andrada is managed by a board of directors with extensive
industry knowledge and a management team with deep commercial and
technical skills. Furthermore, the Company is committed to the
sustainable development of its operations and the growth of its
business. This is demonstrated by how the leadership team places
significant emphasis on creating value for the wider community,
investors, and other key stakeholders. Andrada has established an
environmental, social and governance system which has been
implemented at all levels of the Company and aligns with
international standards. [END]
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEQLBLXQLZBBE
(END) Dow Jones Newswires
June 26, 2023 02:00 ET (06:00 GMT)
Andrada Mining (LSE:ATM)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Andrada Mining (LSE:ATM)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024