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Andrada reports performance improvements on the back of continuous improvement programme, upgrades

Andrada CEO Anthony Viljoen

Andrada CEO Anthony Viljoen

6th June 2025

By: Darren Parker

Creamer Media Senior Contributing Editor Online

     

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Tin, tantalum and lithium miner Andrada Mining has reported solid performance improvements at its Uis operation in Namibia, supported by enhancements from the company’s Continuous Improvement 2 (CI2) programme, including upgrades to the dense media separation (DMS) circuit and the installation of new shaking tables.

In an operational update for the quarter ended May 31 – the first quarter of its 2026 financial year – Andrada CEO Anthony Viljoen said these modifications have driven an increase in processing rates and tin production, highlighting the growing efficiency and reliability of the company’s operations.

“Production of our increasingly valuable byproduct tantalum improved notably, reinforcing our multi-mineral offering. Operational cost performance improved overall, driven by ongoing pro-active cost-reduction initiatives that are expected to enhance cashflows over the course of the year.

“This includes the completion of a group-wide corporate restructuring, which is expected to further rationalise the cost base and strengthen overall profitability,” he said in a June 6 statement.

He further noted that the construction of the new jig plant was advancing well, with the front-end crushing circuit delivered to Uis and fabrication of key components under way.

“As we look ahead, Andrada remains focused on operational excellence, disciplined capital deployment and the strategic development of our diversified critical minerals portfolio,” Viljoen said.

At Uis, tin ore processed during the quarter totalled 254 745 t, representing a 7% increase year-on-year and a 4% increase quarter-on-quarter. Processing throughput rose to an average of 142 t/h for the quarter, up 6% year-on-year, reflecting gains in operational efficiency attributed to the CI2 initiatives.

The average feedstock grade was 0.136% tin, which is 4% lower year-on-year, primarily owing to the use of blended ore. The grade, however, showed a 2% improvement over the fourth quarter of the 2025 financial year.

Despite the slightly lower grade year-on-year, the increased ore throughput contributed to an 11% year-on-year and 7% quarter-on-quarter increase in tin concentrate production, reaching 405 t for the quarter, up from 364 t in the first quarter of the 2025 financial year.

As a result, contained tin production rose by 2% year-on-year to 238 t, compared with 233 t in the corresponding period of the previous year. The plant’s use rate also improved to 93%, a 3% increase over the 90% use reported in the first quarter of the 2025 financial year, largely owing to reduced maintenance-related downtime and further efficiency gains achieved through the CI2 programme.

Meanwhile, Viljoen said other components of the plant are currently either under fabrication or en route to Uis and civil work has been completed, he noted. Initial production is targeted to commence in the second half of the 2025 calendar year, aligning with project timelines and supporting the company's growth objectives.

In terms of progress on the mine’s pre-concentration circuit, Viljoen said that the Metso crushers and ore sorters had been successfully delivered to Uis, and that the construction design for the pre-concentration circuit was complete.

Installation and commissioning of these components are pending, as the company continues to re-assess and re-engineer the front end of the existing tin processing plant to enhance efficiencies.

The company’s tantalum operations, meanwhile, delivered a notable improvement in performance during the quarter, driven by a higher feed grade and the reprocessing of off-specification material.

As a result, about 12.1 t of saleable tantalum concentrate were produced in the first quarter of the 2026 financial year, representing a substantial increase from the 8.6 t produced in the first quarter of the 2025 financial year. Of this, 10 t of concentrate were shipped to AfriMet during the period.

In terms of lithium development at Lithium Ridge, following the successful creation of the joint development committee as outlined in the earn-in agreement with Sociedad Química y Minera de Chile through its subsidiary SQM Australia, the workplan and budget for Stage 1 development of Lithium Ridge have been finalised, triggering the drawdown of the $7-million funding facility to support extensive exploration and drilling activities.

Exploration started in May, marking a key milestone in the project. Senior management teams from both SQM and Andrada conducted a joint site visit to Lithium Ridge in May to reinforce the strategic collaboration and commitment to advancing the project, Viljoen said.

Meanwhile, engagements with prospective offtakers remain active and commercial discussions are progressing constructively, despite the challenging pricing environment, he added.

Overall, Andrada reported operational cost performance improvements in the first quarter of the 2026 financial year compared to the fourth quarter of the 2025 financial year, primarily driven by increased production volumes and ongoing cost control measures across the group.

The 3% increase in C2 costs was attributable to a higher tin royalty rate applied during the quarter. However, these costs were partially offset by improved revenue, supported by a higher realised tin price of $32 993/t in the first quarter of the 2026 financial year, compared with $30 839/t in the first quarter of the 2025 financial year.

In response, the company has implemented cost-reduction initiatives across the group operations, which are expected to support improved cashflows as the financial year progresses.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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