Intention-listed Andrada Mining, which owns operations in Namibia, has introduced a 14% quarter-on-quarter improve in saleable tantalum focus manufacturing to 9 t for the quarter ended Might 31, which is the primary quarter of its 2025 monetary 12 months.
In its quarterly operational replace launched on June 21, the corporate reported a year-on-year improve in ore processed to 237 976 t, from the 217 189 t of ore processed within the quarter ended Might 31, 2023.
Tin focus manufacturing additionally elevated, to 364 t, from the 359 t produced within the prior comparable quarter, whereas contained tin manufacturing elevated to 223 t, from 216 t within the prior comparable quarter.
Plant availability elevated to 93%, in contrast with 91% in the identical interval a 12 months prior. Moreover, the realised tin worth elevated from $25 149/t within the prior comparable quarter to $30 839/t of contained tin for the quarter underneath assessment.
Administration has maintained its steering on prices regardless of the introduction of royalty expenses and ongoing mining price will increase. The mine and plant efficiency are anticipated to stay steady throughout the present monetary 12 months because the pre-concentration circuit and Steady Enchancment 2 (CI2) initiatives are applied.
Enhanced plant efficiency following the completion of the enlargement programme is anticipated to scale back operational prices.
Administration steering on quarterly common C1 prices is maintained at between $17 000/t and $20 000/t of contained tin, with prices of $18 899/t recorded for the quarter underneath assessment.
The steering on quarterly common C2 prices is maintained at between $20 000/t and $25 000/t of contained tin, with prices of $23 452/t recorded for the primary quarter of the 2025 monetary 12 months.
The steering on quarterly common all-in sustaining price (AISC) was maintained at between $25 000/t and $30 000/t of contained tin, with an AISC of $28 774/t recorded for the quarter underneath assessment.
In the meantime, the unaudited money steadiness as at Might 31 was $15.2-million.
“Exposing deliberate ore zones has diminished our stripping ratio at Uis. Coinciding favourably with our enlargement of each tin focus and contained tin manufacturing, we’re ideally positioned to capitalise on the tin worth rally that started in April.
“Given the variety of the minerals inside our mining licences, we now have broadened the scope of our strategic course of past simply the Uis mining licence. The enlargement of the scope has the potential to unlock a number of partnership alternatives throughout our portfolio of belongings.
“This course of is progressing properly, and we look ahead to offering an replace. We stay extremely optimistic for the rest of the 12 months based mostly on the worth that can be unlocked throughout the portfolio,” Andrada CEO Anthony Viljoen mentioned on June 21.
The operational assessment highlighted a ten% year-on-year improve in ore processed, though it remained unchanged quarter-on-quarter at 238 000 t. The plant processing fee was barely decrease at 134 t/h, in contrast with 135 t/h within the first quarter of the 2024 monetary 12 months and 137 t/h within the fourth quarter of the 2024 monetary 12 months, primarily owing to plant outages throughout the quarter.
These outages, brought on by a malfunction within the ore preparation part, had been swiftly repaired and aren’t anticipated to recur. Consequently, tin focus manufacturing decreased to 364 t, from 371 t within the fourth quarter of the 2024 monetary 12 months, and contained tin decreased to 223 t from 231 t.
Nevertheless, the year-on-year tin focus and contained tin tonnages marginally elevated, reflecting the optimistic influence of the enlargement venture undertaken within the 2023 monetary 12 months.
The pre-concentration circuit enlargement replace revealed that the XRT ore sorters from ore sorting expertise firm Tomra and the crusher circuit from original-equipment producer Metso are anticipated to be delivered within the second half of the 2024 calendar 12 months, with development focused for completion within the first quarter of the 2025 calendar 12 months and commissioning beginning in April 2025.
Engineering firm MetC Engineering has begun the detailed plant design in keeping with the deliberate venture timelines, Andrada mentioned.
The ore sorting pre-concentration circuit can be put in parallel to the entrance finish of the present processing plant to minimise disruptions to tin and tantalum manufacturing. The CI2 programme initiatives are ongoing and have been aligned with the plant enlargement venture timeline to make sure optimum manufacturing output.
Improvement of the lithium pilot plant paves the best way for integration into the present tin processing plant, the corporate said.
Additional evaluation and modelling of the built-in plant have elevated the deliberate petalite manufacturing tonnage from the present 30 000 t/y to between 40 000 t/y and 50 000 t/y.
Research on the combination of the lithium circuit are underneath means, concentrating on the manufacturing of petalite utilizing close to infra-red ore-sorting to course of discard materials from the XRT ore sorters.
In the meantime, Andrada identified that tantalum costs had been rising steadily since mid-Might owing to battle within the Democratic Republic of Congo, which has restricted provide from chosen key mining areas. Elevated buying curiosity from smelters can be anticipated to help elevated costs.
Relating to Financial institution Windhoek funding, Andrada confirmed that the executive processes associated to the finalisation of the conditional £7.6-million agreements between subsidiary Uis Tin Mining firm and Financial institution Windhoek are progressing as deliberate.
The requisite provide paperwork had been signed by the corporate and Financial institution Windhoek throughout the conditional 30-day interval. The deal groups for all events have been engaged and several other workstreams have began. The corporate expects to conclude the funding settlement by the third quarter of the 2024 calendar 12 months.
Andrada’s money decreased from $22.2-million on the finish of February to $15.2-million as at Might 31, primarily owing to funds for the preconcentration circuit venture and elevated ore stockpiles in preparation for the expanded plant capability.
The conclusion of the Financial institution Windhoek settlement is anticipated to offer $9.7-million in direction of basic working capital, ongoing exploration, metallurgy and examine workstreams. Discussions concerning different funding choices with a number of international lenders are ongoing to boost the optionality on venture execution. All near-term initiatives are absolutely funded.
To mitigate monetary threat amid latest tin worth volatility, Andrada concluded a hedging instrument with Commonplace Financial institution Namibia Restricted for the primary 20 t of contained tin shipped each month from June this 12 months to Might 2025, at a set worth of $33 000/t.
The tin worth rally, which began in April, was pushed by provide tightness owing to decreased exports from Myanmar and Indonesia, in addition to declining stock in China. Speculative curiosity has additionally contributed to the rally, with consultants cautioning in opposition to an excessively bullish view of future pricing.
The London Metallic Change tin spot worth elevated from $25 450/t on January 2 to above $30 000/t on April 10, peaking at $35 275/t on April 22. The typical day by day worth from April to this point has been about $32 700/t, with a quarterly determine of $30 900/t.
The hedge covers about 30% of the quarterly manufacturing based mostly on contained tin manufacturing within the 2024 monetary 12 months.
