Andrada Mining Share Discussion Threads

[outlawinvestor] 15/2/2021 07:16

I am delighted to report that the strong tin concentrate production levels have been maintained since November 2020.

The first quarterly update on the production performance will be made to the market at the beginning of March 2021.

[3ootuk] 15/2/2021 07:09

Tantalum off take agreement signed, so hopefully that means they've got the separation circuit mostly sorted for that.
Average price over preceeding two months with a good payment on loading, with a reputable purchaser.

[outlawinvestor] 15/2/2021 07:06

RNS: Offtake agreements

- Renewal and extension of tin concentrate offtake agreement with Thaisarco for a further three years; and

- Tantalum concentrate offtake agreement concluded with AfriMet including US$500k advance payment option.

[ukgeorge] 10/2/2021 18:53

It is very encouraging that the recent rise has been on such strong volume. Thanks for the broker note. Roll on 10p :)

[montyville2] 10/2/2021 11:42

Thanks 2magpies - i note their risked and unrisked targets are 12p and 15p accordingly, no specific timetable mentioned but the research note seems to extend to 2022.

[2magpies] 10/2/2021 10:47

Turner Pope note:

[kash125] 05/2/2021 22:36

thanks Monty your insights are much appreciated

[montyville2] 05/2/2021 15:06

Difficult to work out a target price as usual factors like PE ratio need earnings and this company is not due to make a profit until next year 2022 (a recent interview I think). That said the rising tin price should hasten the breakeven point.

Stockopedia are showing a forecast revenue of 17.7m in 2022, and a -1.3m net profit which equates to an EPS of approx -0.2p. To have a PE of 10 they would need an EPS of 0.4p which would need a net profit of approx 2.6m, at the current share price. This sounds achievable to me. I know this is very crude, and I am certainly no accountant, but it seems to support the current share price relative to near term profitability.

Of course the share price for a junior explorer/producer is all about the potential rather than earnings. They are sitting on a huge resource and are looking to prove more of this resource as well as ramp up production. They have a busy year ahead to do both these things and a stream of positive newsflow should see this intangible value grow. However now that they are moving into positive cashflow they should not need to raise further funds by diluting equity, unless they want to accelerate growth in asset or productivity.

Sorry for the long message but I wanted to find some kind of logic to answer the original question. Therefore I would say 10p is a realistic target price for the next year/18 months, as long as we get the positive newsflow.

As I say I am no accountant, so this all may be nonsense. If others have a better way of forecasting share price growth - please share.

[bobbieblock] 05/2/2021 12:00

If they can produce tantalum at 200,000 a tonne and lithium at 9000 a tonne then I’m really not sure what the price target will be

[kash125] 05/2/2021 11:29

whats the target price of this stock say end of the year?

[allonblack] 05/2/2021 09:55

With the price at 25k and rising it would be great if the company updated the market on how much tin it will sell this month at spot and what the cashflow will be with tin at these levels. Lets face it they arent shy about telling twitter where the price is so lets see your hand Afritin how much you got here?

[outlawinvestor] 04/2/2021 18:33

Tin production isolated from Myanmar coup

hxxps://www.internationaltin.org/tin-production-isolated-myanmar-coup/

We do not feel that the political unrest in Myanmar will impact much of the country’s tin supply. The Wa region is relatively isolated from the political situation in the rest of the country, and we expect business to continue as usual here. Although some mines in the area remain flooded, the high tin price is allowing miners to extract lower grade material. Generally found near-surface, this ore is now economic – alleviating the impact of the flood waters.

As such, we feel that February imports into China will remain relatively steady. Following December shipments of 3,400 tonnes of tin ores and concentrates, we forecast that around 3,200 tonnes of material will be shipped to China.

[shieldbug] 04/2/2021 14:54

Lets not get ahead of ourselves. They need to work out how to separate the Tantalum. They appear to have been working on it for several months.

Tantalum, tantalum, tantalum!

[allonblack] 04/2/2021 13:35

I was trying to work out if he meant the cashflow being stronger than expected was helping bring forward investment and growth

[allonblack] 04/2/2021 13:33

Yeh i thought he said the whole thing done this year ie stages ii/iii/iv

[outlawinvestor] 04/2/2021 13:31

A BFS has begun on a Fast-tracked Stage II.

Presentation page 22.

I might need to listen again but was it also on this page when he suggested all would be done this year? Was that just stage II or all of Phase 1?

[allonblack] 04/2/2021 13:21

Thanks. They said they would fund it organically and with now presumably a better cashflow it would have been good to articulate the financing intentions there.

[ukgeorge] 04/2/2021 13:16

Bankable Feasibility study, so mor edetailed than just a feasibility study. They are actually get the costs of machinery rather than estimates

Phase two is the larger expansion

[allonblack] 04/2/2021 12:55

Thanks so could someone clear up what "A BFS has begin on a fast tracked phase ii" means.

[outlawinvestor] 04/2/2021 12:47

Webinar video:
Slides:

[bobbieblock] 04/2/2021 10:28

Would’ve been nice to hear about the targeted tantalum production grades.
At about 300,000 a tonne wouldn’t take much to make our tin cash costs negative.
Also previous talk of REE production too. Coming from Namibia they could command a premium from the USA/Europe to offset Chinese production.
Also phase 2 timescale.

[shieldbug] 04/2/2021 09:33

Presentation aimed more at new investors. I wonder if they will raise money soon to fund expansion. With the stronger share price it would seem a good time.

[koolio] 04/2/2021 08:57

He didn’t talk about current production or grades, nameplate tin ahead of target despite COVID and that we would be making revenue of over 100mln usd within 5yrs.
Tantalum and Lithium are being produced but not at commercial levels at the moment although the size of the Lithium deposits are massive and that we have all the minerals for battery production for years to come.
He isn’t very comfortable or polished in front of the camera but he gives the impression that he understands the business inside out and has a clear vision for the business.

[ukgeorge] 04/2/2021 08:46

I also missed it.

The video should appear on this link later