This looks like it could be a reaction to the bounce in metal prices in the last few days. |
They have 22m in borrowings and other financial liabilities that were not there in last year interim report for late 23. They were saved from a 3 million 6 month loss by foreign exchange difference. They are selling Tin for tiny profit on the AISC. You know more debt or placing is incoming. Disaster. |
On completion of SQM deal, which is currently subject to local regulatory approval, a $1.5M fee to be paid. Plus there is VAT reclaim on a lot of heavy plant and equipment purchased in H2 2024 to come. This was largely spend-on expansion of the Tin plant processing unit, which will come online in H1 2025. The pre-concentration circuit expansion revealed that the XRT ore sorters from ore sorting technology company Tomra and the crusher circuit from original-equipment manufacturer Metso were delivered in the second half of the 2024 calendar year, with construction targeted for completion in the first quarter of the 2025 calendar year and commissioning starting in April 2025.This plus other cost saving initiatives should push down AISC, in addition be interested to see how use of the plant for third party tolling impacts cash flow (as a fee based play should be accretive). But a wait and see for now. |
They did get over 10p in the early days when lithium was in high demand and the world was bullish. Most countries apart from the UK have massively reigned in net zero since then.
There will be demand for lithium, mainly from china, as they've wiped out most northern hemisphere EV production. The Chinese have their own sources though with their 50 year plans and buying up resources for debt in Africa.
ATM will run out of money at some point with current spending, and other companies are now saying debt is harder to raise even at high interest rates. So how are management going to cut costs so the true cost of running the whole operation is covered? |
If you listen to Berenberg you will end up poor. They have been tipping it since above 5pLook at the tip history. 1p is coming. https://www.stockomendation.com/tips/24-may-24-berenberg-buy-atm-andrada-mining-limited-npv |
An 11p price target is very nice, but we'd really like to know what assumptions underlie it. |
Finally noting some relatively decent buying (and trading volumes) here today, I guess it’s now just looking way too cheap to ignore, and where upside/multibagger potential could by far exceeds any downside risks, certainly one to watch in 2025! |
The lithium price remains completely shot. I wonder who'd want to get on board at this stage, though surely they'd be looking ahead a few years. |
Production hovers around break even to small profit, but they don't mention the £££ admin costs which are eating in to the remaining cash.
The aisc is high compared to many other producers.
Be interesting to see what the actual lithium deal is regarding new mines and plant. |
 Andrada Mining story stacks up as optimisation improves, says broker
Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) is a buying opportunity after today’s trading update, according to analysts at broker Berenberg.
Results were a mixed bag, said the broker, with tin production of 232t below the broker’s expectation of 285t as ore processed and grades undershot, but recoveries improved.
Management added that ore processed during the period was impacted by increased maintenance on the crushing section of the plant, while feed grade was lower due to the processing of blended ore.
Berenberg added it was a challenging quarter for Andrada, but the effort to improve plant efficiency should result in a better performance in the current three months.
The broker has a target price of 11p, adding that management remains focused on reducing its operational costs while strengthening the economic fundamentals of its tin operations, but this is reliant on operational delivery.
“We are constructive on the Andrada story and expect a buying opportunity if the shares experience softness today. The stock is trading on 0.23 times NAV and we maintain our buy rating."
Shares today were down 0.24p at 2.18p. |
20 Mining Companies to follow for 2025 Part 1 (A-E) https://total-market-solutions.com/2024/12/20-mining-companies-to-follow-for-2025-part-1-a-e/ |
Does anyone have access to that Berenberg note? It would be nice to know what the assumptions behind their 11p price target are. |
A disaster. |
A Terrible Mistake? |
does not ATM stand for a device which is spitting money? |
Any chance that that note could be made available, or at least the gist of it? |
Certainly was Richy, it's all about 2025 for ATM! |
Some great information in that RNS . New broker note also today . |
In an interview here given a month ago
the CEO says the following (starting around 11:20):
"For us it's very important to make sure that we have our funding partnerships lined up at an early stage. We don't want to rely on equity, and we don't rely on equity any more." |
"...the Directors are already at an advanced stage of securing additional funding for the next 12 months. However, this is yet to be finalised as at the date of approval of the financial statements..."
More dilution plus current finance costs for this quarter were £2m.
Professional fees of almost £1m and high travel expenses. |
It's making technical and operational progress but its balance sheet is horrible. At this point I'd back SQM to take it over at a knockdown price in a year or two. Without reaching positive cashflow, it's doomed IMO. |
These results explain recent weakness but should not extend it. |
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