Aim- and OTCQB-listed Andrada Mining has reported year-on-year increases in ore production and processing in its unaudited operational update for the first six months and the second quarter of its 2025 financial year.

The update indicates continued growth in both production and efficiency, with improvements across various operational and financial metrics.

In the second quarter of the 2025 financial year, Andrada processed 242 528 t of ore, a 5% increase from the 232 154 t processed in the second quarter of the 2024 financial year. The ore mined was blended to improve use while maintaining grades consistent with the reserve statement.

Over the six-month period to August 31, the total ore processed amounted to 481 504 t, marking an 8% increase compared with the first half of the 2024 financial year. The plant use rate improved to 93% in the second quarter, up from 83% in the same period in the prior year.

Tin recovery rates also saw notable improvements. The tin recovery rate increased to 75% in the second quarter, compared with 67% in the prior comparable quarter.

Despite a slight decrease in tin concentrate production to 388 t, compared with 398 t in the prior comparable period, the resulting contained tin tonnage remained almost flat at 239 t. This was a slight increase from the 238 t recorded in the prior comparable period.

Over the first half of the 2025 financial year, total contained tin production reached 462 t, a 2% year-on-year increase.

The realised tin price rose significantly, reaching $31 937/t in the second quarter, up from $25 183/t in the prior comparable period.

Andrada also shipped about 15 t of saleable tantalum concentrate, with a grade of 10.8% tantalum pentoxide (Ta₂O₅), to AfriMet during the second quarter. Additionally, about 5 t of petalite, containing over 4% lithium oxide (Li₂O), were supplied to a ceramic producer during this period.

“We continue to improve operational performance as we optimise processes, indicated by the higher plant use rates and contained tin tonnage. The exposure of the higher-grade ore at Uis has enabled us to expedite the lithium bulk-sampling campaigns.

“We are extremely pleased with the initial commercial sale of petalite concentrate that validates the value of Uis’s lithium mineralisation,” Andrada CEO Anthony Viljoen said on September 26.

Financially, Andrada’s costs for the second quarter and the first half of the 2025 financial year were within management’s guidance. The average C1 operating cash cost for the second quarter was $19 927/t of contained tin, and $19 400/t for the first half of the year, both of which fell within the company’s guidance of between $17 000/t and $20 000/t.

The average C2 operating cash cost was $24 662/t for the second quarter and $24 043/t for the first half, aligning with guidance of between $20 000/t and $25 000/t.

The all-in sustaining cost (AISC) for the second quarter was $27 931/t, with the half-year AISC at $28 328/t, remaining within the projected range of $25 000/t to $30 000/t.

Andrada finalised a £7.5-million funding agreement with Bank Windhoek during the second quarter, which, according to Viljoen, “… is an endorsement of our ability to implement and achieve our strategic objectives”.

As of August 31, the company reported an unaudited available cash balance, including undrawn facilities, of £8.2-million.

Looking ahead, the company is focused on its long-term growth strategy. On September 9, Andrada concluded a three-stage earn-in agreement with Sociedad Química y Minera de Chile through its subsidiary SQM Australia.

This agreement allows SQM to partner with Andrada in developing the spodumene-rich Lithium Ridge asset, which Viljoen said “… brings both the financial and technical capabilities required to accelerate the exploration of Lithium Ridge”.

In addition to this partnership, Andrada said it was pursuing further value-accretive relationships with global organisations. Post-period results also include exploration data from the Brandberg West exploration licence.

Initial results from 10 out of 20 holes drilled indicated significant mineralisation, including tin, tungsten and copper.

“The continued support from our lenders, as demonstrated by the finalisation of the Bank Windhoek funding agreement, is an endorsement of our ability to implement and achieve our strategic objectives.

“The high-profile partnership announced earlier this month with SQM on Lithium Ridge, alongside the recent drilling results at Brandberg West, truly confirm the high-quality nature of our resource portfolio,” Viljoen said.