Andrada Mining Share Discussion Threads

[dunns_river_falls] 22/12/2021 11:00

Loss making, but breaking even or better in recent months. Future is very bright. Target of $500m revenue in 5 years. Looking perky today with good volume

[farrugia] 16/12/2021 20:45

are these loss-making? my records are showing they made a loss of 5.69 million this year?

[lasata] 16/12/2021 13:54

AfriTin breaks Uis production record

16 December: AfriTin Mining has been operating its Uis tin mine in Namibia since late 2019, but results from the most recent quarter (Q3, financial year 2021-22) represent its best to date.

Throughput increased at Uis, with some 148,700 tonnes of ore passing through the plant, some 17% above Q2. Recovery of tin was 61%, above the target of 60%. Tin grades also improved, with the plant feed averaging 0.150% Sn, above the average life-of-mine grade of 0.138%.

As a result of these improvements, 220 tonnes of tin concentrate was produced during the quarter, containing some 136 tonnes of tin metal. This was some 20% higher than in the previous quarter, more than 25% above nameplate capacity of 108 tonnes of tin-in-concentrate, setting a new record for the mine. The previous peak in output was in the final quarter of the 2020-21 financial year when some 126 tonnes of tin-in-concentrate was produced.

Another positive result during the quarter was a significant improvement in operating costs. Costs peaked in the second quarter of this financial year, at US$ 26,625/tonne tin, falling in the most recent quarter by 18% to US$ 21,834/tonne tin. AISC followed a similar trend, down 22% quarter-on-quarter to US$ 23,290/tonne tin.

Looking ahead, AfriTin is progressing well with its Phase 1 Expansion project. The work aims to increase tin concentrate production by 67% from current nameplate levels of 720 tonnes per year. Construction and commissioning of the expanded plant is on track to be completed in Q2 2022, according to the company. Work for the Phase 2 expansion is also advancing. This step sees annual production of 10,000 tonnes tin concentrate, along with lithium and tantalum by-products. An exploration drilling programme was announced in late October 2021, followed by by-product test work in November 2021. For Phase 2, water and power infrastructure will need to be upgraded, and AfriTin is engaged with both Namibian state-owned and private utilities providers to explore options. These include renewable energy generation and linking with existing desalinated water supply infrastructure in the region.

Our view: This quarter represents AfriTin‘s strongest to date. Although part of the boost was due to temporary higher tin grades – which are expected to revert to the mean in the future – improved plant availability and processing rates were key contributors, meaning that AfriTin is now exceeding its forecast maximum capacity. The reduced operating costs compared to the achieved tin price of $39,025/tonne indicates significant revenue generation.

[nicosevos] 16/12/2021 07:51

Money bag 𝑺𝒑𝒐𝒏9944;𝒆 Money bag
@TheMoneySponge
·
18h

#ATM.....pay attention - will only increase with phase 1 expansion

The AISC of US$23,290 per tonne of contained tin compares with the achieved price of US$39,025 per tonne.

You can flirt with no hope stocks or find ones that deliver and offer growth - it's pretty simple


For more info.....

[megaman2] 15/12/2021 17:29

You can't argue with the basic figures here with current aisc at $23s it surely can only fall moving forward especially with potential massive credits from lithium and tantalum. But this is aim and companies float on aim to raise cash and the company has other aspirations to develop other assets and I believe the share price is not higher because of another equity dilution to raise funds . Atm is a junior miner and I'm just accepting that might well be the order of events. I would rather they hold fire and just develop the existing asset and raise funds when required later on but im just some pi and not the CEO.

[dunns_river_falls] 15/12/2021 09:07

Agree there are still major milestones to pass before focus turns to phase 2. Lithium and tantalum sales are key for me as the AISC will plummet at that point and cash flow scales up.

There was mention of 2024 for first revenue from P2 (see turner Pope note from February). But not sure if the P1 expansion has any bearing on P2 start up.

Let's see if P1 expansion is on schedule first. I get annualised revenue of $20m based on today's news.

[nicosevos] 15/12/2021 08:35

Let's just get phase one sorted first......Q2 2022

The share price is going to double well before then!...Q2 22.

[megaman2] 15/12/2021 08:14

I'm justing reading the drilling programmes Rns and it's 3 years....I'm sure i read recently that the bankable feasability report would follow after the drilling ...I might be wrong here and if anyone could clarify it but the second phase expansion could be 4 years away from even starting ????

There are 2 clouds hanging over the share price imo preventing it from moving further
1. The unknown timescale to commence to 10000 tonne
2. Potential imminent dilution for other asset development.

[dunns_river_falls] 15/12/2021 07:27

Pleasing update. Production up, costs down, price achieved up.

More detail than normal as well.

[iceagefarmer] 06/12/2021 22:15

masonfreeparty
4 minutes ago (edited)
japan is stockpiling coal for hydrogen manufacturing allegedly...but really its to heat their homes when the grand solar minimum intensifies..i can see a stockmarket collapse in the hi tech renewables when folk realise they are pretty much useless during a cold sun winter...oil,gas and coal will be king again..oh and dont forget cornish tin and copper ! strategic minerals isa good bet,vast resources,block energy and victoria oil for gas and edenville for coal

[megaman2] 06/12/2021 22:03

Lithium oxide at Uis occurs primarily as the mineral petalite in the ore which is treated by the current processing facility. The occurrence of petalite is consistent throughout the mineral resource. The Company aims to produce a premium technical grade petalite concentrate. Although petalite contains comparatively less lithium than the more common spodumene (petalite has a theoretical limit of 4.9% Li2O), the low contaminant levels of technical grade petalite makes it suitable for the glass and ceramics market, therefore attracting a premium to the typical chemical grade spodumene concentrate. A technical grade petalite concentrate typically contains a minimum of 4.0% Li2O, a maximum of 0.05% Fe2O3 and alkali metal compounds (Na2O + K2O) of less than 1.0%. The Company is also investigating possible offtake routes in the battery materials market.

Lithium oxide at Uis occurs primarily as the mineral petalite in the ore which is treated by the current processing facility. The occurrence of petalite is consistent throughout the mineral resource. The Company aims to produce a premium technical grade petalite concentrate. Although petalite contains comparatively less lithium than the more common spodumene (petalite has a theoretical limit of 4.9% Li2O), the low contaminant levels of technical grade petalite makes it suitable for the glass and ceramics market, therefore attracting a premium to the typical chemical grade spodumene concentrate. A technical grade petalite concentrate typically contains a minimum of 4.0% Li2O, a maximum of 0.05% Fe2O3 and alkali metal compounds (Na2O + K2O) of less than 1.0%. The Company is also investigating possible offtake routes in the battery materials market.

I think ili2o can be used as a cathode in lithium ion batteries but it's not it's primary use . Lithium carbonate and lithium hydroxide are the primary base compounds in lithium batteries.my understanding was they will produce some sort of low concentrate ore that's used in ceramics but as pointed out it does add on in the rns about the battery metal offtakes. Presumably it can be concentrated further at a cost to be used as a cathode .whilst having a degree in chemistry many moons ago I know little about lithium battery chemistry and a quick look at wiki on the subject it would require a fair amount of investigating and reading to find out what's what.

[dunns_river_falls] 06/12/2021 21:15

No guarantees of course, but the company did mention potential for battery market use for the lithium in the RNS on 18/11.

"The Company is also investigating possible offtake routes in the battery materials market."

[megaman2] 06/12/2021 19:13

One thing that concerned me greatly was when he referred to the existing finance deals and bank credit he said something along the lines that it allowed them to use the equity to develop other assets...I'd like to see them concentrate on getting to 10000 MTV with the major asset before they start diluting and potentially biting off more they can chew....

[megaman2] 06/12/2021 19:05

The lithium oxide is not for use as a battery metal it's used in ceramics. I thought ball park figures for cost reduction would be c $5000 per tonne . Which is clearly a big deal it will reduce costs more than the tantalum but it's not in the same price range by any measures as the tin. It's not about Being inpatient it's about having a clearer plan/milestones on how it gets to its 5 year plan.Most junior miners at this stage will or even pre production would be telling investors the stepped plan and capex requirements and is why crux persisted twice with the question .

[ukgeorge] 06/12/2021 18:37

It's called by-product costing, overall cost minus any by-product revenue divided by Tin production.

Co-product is when you split the costs against the revenue of all the metals.

He is a shrewd guy and taking the company in the right direction and minimising dilution.

[freddiehoward] 06/12/2021 17:29

From the interview, its clear that Viljoen currently views the profit only in terms of tin production as that is currently the main product as stated around 20 min. They are currently mining around 1 million tones a year i.e. about 80 tonnes a month. The current unit cost is $17- 18.000 for the tin and they now sell at $37,000 i.e. $20,000 GP per tonne. These figures will be variable, but that's how he gets around $1 million a month FCF. They now aim to increase throughput, increasing the amoun of tin produced and that will increase FCFproportionately as they get further into Phase 1. Note, the primary aims of phase 1 are complete i.e. the operation is profitable. However, phase 1 also calls for firming up reserves (banks need this) and increasing throughput to demonstrate expansion theerby prducing a proper feasibilty study for the mine (all mines need that).

At around 20 mins he describes addition of 'bonanza elements. Currently the plant is set up to extract heavy metals and this includes tantalum which is only just being extracted. The revenue from this is seen as a unit cost reductiond for the tin, so they will get about $2000 for the tantalum for each unit of tin produced, ut Viljoen ounts this as cost reduction of tin for simplicity.

Lithium is light and is currently just waste. They have to put a new unit in to get the Lithium from the waste. They don't know in what form yet or how much they sell it for. Initially he is describing the money he gets for lithium as a cost reduction for each unit of tin rather than as revenue, as he did for tantulam. However, there is so much lithium and the price of it is oncreasing it may become the main product in which case he will see tin as the 'cost reducer'. Anyway,he currently views the additional products as a means to drive down his unit cost.

I think what he describes is essentially an increase in revenue but he sees it as unit cost reduction and that is the root of confusion. A more conventional way of seeing things woud be to say the unit cost is $17-18,000 and he gets $37,000. Adding tantalum, will raise the revenue by $2000 at little cost. Adding Lithium will add $xxxxx revenue (TBD) at little increase in cost. He sound more like a COO/miner than a conventional CEO as he likes to think in terms of reduced costs rather than increased revenues which most investors want. This in my view is the cause of confusion.

I actually think he is doing a good job, but this way of presenting, along with the outstanding requirements for phase 1 - firming up reserves, demonstrating expansion etc. is upsetting the impatient. When you cut through that you can determine what he is actually trying to do.

[dunns_river_falls] 06/12/2021 16:28

Huge market for what they are mining. pretty likely they will be bought out long before 5 years are up. Just hope they are 15p plus before any offer. Would rather they become a decent sized miner on their own merit, but doubt it. once the cash is rolling in they will be snapped up.

[megaman2] 06/12/2021 16:14

I don't know why they just don't fill in the blanks from now :6-7 months to the current expansion. 1 year drilling .1 year bankable feasability and financing .3 years staged expansion plan 4000 MTV 7000mtv 10000mtv. Capex $120 million. Put it on a slide and add a few other bits of info hey presto ! I think that's what the crux interview was asking and it's what I think is normal par for the course requirement for investors. New investors are just left guessing...

Or maybe they are just going to take it to so far and flog it ?? That could be cool and avoid dilutuon ?

[dunns_river_falls] 06/12/2021 15:59

I think the monthly $1m in fcf is more likely to be $1m in revenue. The day we get news on sales of lithium and/or tantalum will be the transformative news for me.

$500m revenue in 5 years is going to take some doing. Baby steps.

[ukgeorge] 06/12/2021 15:33

There was the mention of the ore screener, or something like that. Which will reduce the amount of waste processed by circa 80%. Which was only going to cost $1M

[megaman2] 06/12/2021 15:29

The dissapointing thing was he was asked exactly the same question twice on how they where going to get to the expansion but he gave exactly the same long winded round the houses reply and didn't answer the question . What's lacking here is a timetable of future events it's evasive ..
But looks like to me over a year of drilling minimum then a year to to the bankable feasability report ...that's what I got from the interview just my opinion seems expansion more than that's already known and funded is c 2 1/2 years off before it's even started and that's why he evaded the question twice.

I'd prefer they just came out with a brief more exact plan and timescale .

[dunns_river_falls] 06/12/2021 12:06

New in depth interview


$1m per month in fcf.
Ore sorting machine tests going on enhancing the efficiency of the plant (results soon).
Lithium ready to sell shortly 3-6 months if I heard right.
Brandberg west project has massive upside potential

[dunns_river_falls] 03/12/2021 08:25

Another decent buy. Hoping for a good few days here.

[nicosevos] 03/12/2021 07:11

This trade was a buy, printed late yesterday....
Nice!!!!!!
gla

01-Dec-21 14:25:16 5.00 2,000,000