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Highlights

  • Andrada's revenue soared 83% in FY24, reaching GBP 17.9 million due to higher tin production.
  • The company reported a gross profit of GBP 1.7 million in FY24 from a gross loss in pcp.
  • For FY 2025, exploration plans include resource validation drilling at the Uis Mine.

Andrada Mining Ltd (LSE: ATM) is a Guernsey-based metal and mining company listed on the FTSE AIM All-Share. The company owns several mining and exploration assets in Namibia with Uis Mine being the flagship asset.

Andrada posted an 83% increase in revenue in FY24, reaching GBP 17.9 million. This surge is largely due to higher tin metal production during FY24. Coupled with improved operational efficiencies, the company turned around its gross profit. It rose from a loss in FY23 to GBP 1.7 million profit in FY24.

The company successfully reduced its C1 and C2 operating costs per tonne of tin by 11% and 9%, respectively. This achievement demonstrates effective cost controls, even in an inflationary environment.

The expansion and optimization of the company’s Uis Mine plant resulted in a more than 50% boost in tin production volumes. This enhancement has improved operational efficiency and allowed the company to meet its lower-end cost guidance. The annual ore processing capacity now stands at approximately 1 million tonnes. Additionally, Andrada's cash equivalents totaled GBP 14.5 million at the end of FY24, while total assets increased by 39% to GBP 66.2 million.

Recent Business Update

Andrada reported that its Q2 FY25 operating costs remained within management guidance. C1 costs were USD 19,927 per tonne, while C2 costs were USD 24,662 per tonne of contained tin. For the first half, the averages were USD 19,400 and USD 24,043, respectively. The all-in-sustaining cost (AISC) for Q2 was USD 27,931, fitting within the USD 25,000 to USD 30,000 range.

Company Outlook

Andrada is set to advance its strategic goals. These include expanding tin processing, developing lithium assets, and progressing exploration programs. Key milestones involve constructing a pre-concentration circuit and completing the CI2 Programme. The company will also conduct feasibility studies and implement a lithium integration circuit.

For FY 2025, exploration plans include resource validation drilling at the Uis Mine. This aims to refine the potential for tin and lithium. A high-density drilling campaign at Lithium Ridge will establish a maiden mineral resource estimate (MRE). Additionally, Andrada will continue exploration at Brandberg West, focusing on mineralization in the northern extension and historical pit areas.

Top 10 Shareholders:

Andrada Mining’s top 10 shareholders collectively account for around 56.33% of the total shareholdings. The Orange Trust holds the maximum number of shares with around 14.53% shareholding, followed by Abrdn Investments Limited with approximately 7.04% shareholding. It is depicted in the chart below: 

Price Information

The stock price of Andrada has declined by around 8.8% and 4.6% in the past month and the past three months, respectively. As of October 30, 2024, the stock’s closing price is GBX 3.10. The stock's 52-week high is GBX 6.40, while the low is GBX 2.83.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 30 October 2024. The reference data in this report has been partly sourced from EODHD/Others.