Andrada revenue hits N$654m
Tin producer Andrada Mining has reported a sharp improvement in its operating performance, with revenue rising to about N$654 million as production increased at its Uis mine in the Erongo region.
Revenue for the financial year to the end of February rose 34% from about N$487 million to N$654 million.
Contained tin sales increased 13% to 1 036 tonnes, while tin concentrate production rose 15% to 1 740 tonnes.
The company said the average realised tin price increased by 20% to US$37,133 a tonne.
Gross profit more than doubled to N$167 million, while the gross profit margin increased from 13.2% to 25.7%.
Uis operation strengthens
Andrada's operating loss narrowed by 34% to N$56.5 million.
Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to N$71.7 million.
The company processed 1.04 million tonnes of ore during the year, an 8% increase from the previous year, while tin recovery remained at 72%.
The stronger operating performance reflects higher production and improved margins at Uis, although the group remained loss-making.
Financing costs remain a drag
Despite the improvement in its mining operation, Andrada remained loss-making at group level.
The company reported a loss before tax of N$204 million, compared with about N$185 million in the previous financial year.
The loss for the year increased 9% to N$232 million.
Finance expenses rose 11% to N$150 million, continuing to weigh on the group's overall financial performance.
Cash flow turns positive
One of the strongest developments in the results was the turnaround in operating cash flow.
Andrada generated N$102 million in operating cash during the year, compared with an outflow of about N$87 million in the previous financial year.
Cash and cash equivalents increased to N$193 million at the end of February.
The move from cash consumption to cash generation marks an important improvement in the company's financial position as it continues to invest in the Uis operation.
Expansion plans
Andrada is continuing to invest in expanding Uis, including additional processing capacity and an ore-sorting project aimed at increasing production and lowering unit costs.
The company is also seeking to develop lithium and tantalum resources alongside its established tin operation.
Its Lithium Ridge project is being advanced with Chilean mining company SQM, while Brandberg West is being developed through a partnership with BWCAM.
Andrada chief executive Anthony Viljoen said the company had assembled a portfolio of historically significant mining assets across one of Namibia's most prospective mineral districts and had worked to understand, consolidate and de-risk them.
Known resources
“These assets were not unknown. Uis, Lithium Ridge and Brandberg West all have histories extending back decades. What has changed is the geological understanding, processing technology, commodity environment and, increasingly, the strategic importance of the minerals they contain,” Viljoen said.
Chief financial officer Hiten Ooka said the company had continued to manage its cash resources carefully while funding its investment programme.
“The Group continued to manage liquidity against an active capital-investment programme and broader strategic growth agenda. Cash forecasting, covenant compliance, working-capital management and disciplined capital allocation remained core areas of financial management during the year,” Ooka said.
The results show a marked improvement in Andrada's underlying operating performance, with higher revenue, stronger margins and positive operating cash flow.
