Andrada Mining Share Discussion Threads

[nesty1760] 09/7/2023 12:15

I think the potential here is just plain mouth watering. I think in time 35p be well cheap. The thing I am overall concerned about, isn’t about doubt if ATM will achieve these targets, but more the fact will we see them, if it gets sold off too cheaply. IMHO, shares like this don’t come along too often, I am in this for +50p, I would like to make a killing here, without having to participate chasing AIM ever again!

[bikersteve] 08/7/2023 09:17

Thanks for posting on the LSE

[bikersteve] 07/7/2023 17:38

Jelignite, could you please post this on the LSE site. Thanks

[jelignite] 07/7/2023 15:18

Andrada Mining ("ATM") has released results from the first drill programme on the B1 and C1 pegmatites, within licence ML129, also known as the Spodumene Hill Project. Sitting ~15km SW of ATM's flagship Uis Project, Spodumene Hill is thought to be mineralogically similar and could provide a satellite ore source for the current Phase 1 tin-tantalum circuits and potential future commercial lithium plant. With surface sampling in 2022 having shown the presence of spodumene mineralisation – which sells at a premium to the petalite present at Uis – the 2023 exploration programme was designed to upgrade historical resources of tantalum and tin, whilst proving continuity at depth and establishing average grades of lithium. The results confirmed depth potential and highlighted zones of very attractive lithium grades (>2% Li2O in places). While the programme provides a relatively small sample of preliminary, shallow holes, ATM sees scope for ore sorting to provide a high grade pre-concentrate for a future lithium processing plant. Meanwhile, tantalum grades were up to 2,742ppm and averaged ~280ppm, more than 3x the grade at Uis. ATM has initiated a metallurgical programme to define an optimal flowsheet for lithium, tantalum and tin from Spodumene Hill. The imminent completion of a lithium pilot plant at Uis could assist in this process and, along with ATM's ongoing strategic funding process, is a key upcoming catalyst to close the 79% discount to our GBp 35/sh target price. Initial glimpse into the potential of Spodumene Hill Project ATM completed 1,159 m of diamond drilling over seventeen drill holes on B1/C1, with all holes intersecting mineralised pegmatites. Highlights include hole B1_01 which intersected 14.52 m at 1.38% Li2O, 285 ppm Ta and 0.131% Sn from a depth of 15.48 m, including a 5m subinterval at 2.32% Li2O, and hole C1_04, which intersected 11.06 m at 0.81% Li2O, 1101 ppm Ta and 0.033% Sn from a depth of 13.59 m to 24.65 m. In addition to the visible lithium content, the intersections highlight the tantalum potential of the area, with the highest grade returned reaching over 2,700ppm. We note licence ML129 sits within 'truckable' distance from existing processing facilities at Uis, including a recently constructed tantalum recovery circuit, suggesting potential upside by blending higher-grade tantalum feeds. Following positive pegmatite intersections, the company will concentrate on defining the extent of these zones both laterally and with depth, as well as launching a metallurgical programme to explore the optimal beneficiation process, which we believe is likely to involve ore-sorting to produce a higher lithium grade pre-concentrate. Lithium test programme on track As detailed in our previous note, ATM announced it has produced the first saleable bulk lithium concentrate from the off-site pilot test, using dense medium separation ("DMS"). The encouraging petalite concentrate is being tested for conversion to lithium carbonate and lithium hydroxide, alongside provisional completion of an offtake agreement, targeted for Q3 CY'23. Additional beneficiation technologies available to ATM include froth flotation and sensorbased ore sorting, which could unlock process efficiencies. Construction of the onsite pilot plant is expected to complete imminently, with commissioning anticipated in the coming weeks; as such, we believe Uis could generate early revenue from lithium, later this year. (H&Pe ~US$6.2m petalite sales vs US$5m20m guidance for FY24E). The new pilot plant could also be used to test run batches of ore from Spodumene Hill, accelerating the metallurgical programme initiated post these drilling results. Valuation: Mar'24E GBp35/sh TP implies 373% upside We believe the market continues to underappreciate the long-term potential of Uis, especially in comparison to lithium peers and given its near-term profitability with £12m EBITDA in FY Feb'24E (H&Pe). Based on a US$1,200/t petalite price assumption we derive a DCF-based, risked valuation for ATM of 35 GBp per share, implying 373% upside.

[jelignite] 07/7/2023 14:30

Https://12ft.ioThis can help sometimes getting past a paywall.Gla

[martinfrench] 07/7/2023 11:01

no details of the strategic partnership yet, and AV would be mad to set up an open ended agreement for all our sites, would be crazy.

therefore if strategic (and we dont necessarily need a kodal style deal though for our size we could) but rather an offtake upfront deal.

AV likes to do things in a modular way (so says mike rawlinson) so he might do bigger DMS plant.

would be very unimpressed if he does a stake deal in all our acreage (just no need to as we have a huge amount)


unless the deal is from tesla or major mining company and is just mindblowing

[dunns_river_falls] 07/7/2023 10:53

There is a new note out by H&P. Not got access to it as it's behind a paywall. Anyone got access to research tree and could summerise?

Tin prices are very supportive. $28,400 so an extra $250k per month over the last reported figures.

Lithium ridge (nais nais) drilling results next. News on lithium plant start up. With strategic partner progressing hopefully the next few months should be interesting. Spodumene hill results were very patchy, but will still underpin resource upgrades.

I think the strategic partnership only includes the Uis licence and the 180 pegmatites. Huge area and massive potential.

[lasata] 07/7/2023 10:11

FT:



It doesn’t need to be this way. Industry analysts are all flashing the same warning lights: achieving the energy transition will demand far more lithium and other minerals by 2030 than the world is on track to produce. Responsibly boosting global production is paramount. Avoiding critical minerals shortages will require some 330 new mines over the next decade, according to Benchmark Minerals, even assuming maximum progress on recycling. This includes 59 new lithium mines; the world currently has a couple of dozen. 

This is not a problem any country can solve alone. The magnitude of supply needed to fend off looming shortfalls is larger than any one nation could conceivably mine. The US and its partners can and should co-operate to boost overseas production. Neither is it a problem the market can easily manage by itself. There are several reasons to doubt the old saying, “the cure for high prices is high prices”. After all, lithium prices have risen 800 per cent over the past three years — and still, mining companies, wary of price volatility, aren’t investing anywhere near the rates needed.

America’s recent critical minerals deals with Japan, and soon Europe, offer a promising opening. But to avoid global shortages, policymakers must go much further. To start with, they’ll need to bring exporters to the table, not just buyers — stitching Washington’s bilateral deals with Japan and the EU into a new critical minerals pact with leading net importing and exporting countries. Absent this sort of expansion, the world could read US agreements with Tokyo and Brussels as an attempted ‘buyers club’, which risks stoking calls from some exporters to form an Opec-like cartel for critical minerals.

[lasata] 07/7/2023 07:17

ITA:

"Andrada Mining, formerly AfriTin Mining, produced record levels of tin-in-concentrate at costs below management guidance for the first quarter ending May 31, 2023 (‘Q1 2024’).

The company released the results in an unaudited operational update for its Uis project, Namibia, for Q1 2024, showcasing significant achievements and positive financial performance.

Owing to the processing plant operating at record levels of 135 tonnes per hour, the company reported a 42% year-on-year increase in tin-in-concentrate production, reaching 216 tonnes in Q1 2024 compared to 152 tonnes in Q1 2023. When scaling to overall concentrate, production saw a substantial rise of 50%, reaching 359 tonnes compared to 239 tonnes in the same period last year.

Commenting on Andrada’s performance this quarter, Anthony Viljoen, CEO, is “pleased with the significant efficiencies achieved with the increased production of tin concentrate and the lower-than-expected cash cost increases QoQ.”.

Despite a quarterly rise in costs due to the increased stripping ratio from 1.4 to 2.3, the average C1 operating cash costs were maintained below the projected guidance, touching $15,741 per tonne of contained tin. Similarly, the All-In Sustaining Costs (AISC) were also lower than the management’s forecast, standing at $21,377 per tonne.

Improved safety performance was another notable highlight, with Andrada Mining achieving a Lost Time Injury Frequency Rate (LTIFR) of 0.95 for 881,808 Lost Time Injury (LTI)-free hours, indicating a safer working environment.

In terms of further exploration, drilling activities are ongoing to upgrade historic resources and confirm mineralization in various pegmatite areas.

Our view: The latest update reinforces Andrada Mining’s promising future. The company’s high levels of tin production and successful generation of their initial saleable bulk lithium concentrate showcase their potential. The exploration of revenues from this lithium for H2 2023 could further bolster their financial performance.

Positive momentum is likely to continue for Andrada, as the company anticipates releasing the assay results from their ongoing drilling activities in the near term."

[martinfrench] 06/7/2023 19:10

would to compare us to prem....just money upfront for a set amount of lithium to be produced fine by me

[3ootuk] 06/7/2023 19:04

If we look at the deal between Canmax and PREM last June, their lithium offtake was a profit share once production costs deducted.
Seems like a reasonable thing.

[sogoesit] 06/7/2023 10:41

Indeed... Lol

[arlington chetwynd talbott] 06/7/2023 08:36

Yes, when something seems to be neither one thing nor the other, the market often ends up concluding that it is the other.

[theimpatientone] 06/7/2023 08:18

oh well the traders have decided that the results were held up to let the seller get a better price. Danger of dealing with a non London based Company

[3ootuk] 06/7/2023 07:48

No great sell off on news.
The real thing here is they have a large volume of pegmatites so can load the plant around the 1% level. Depends how much they want to split between tin and lithium.
They might preconcentrate the lithium and throw the low bearing tin, keeping the main plant in the higher tin.

[arlington chetwynd talbott] 06/7/2023 07:12

It is certainly difficult for us as laymen to put results like these into context. There are usually some clues in the language used in the RNS, which in this case I would say is neither one thing nor the other. The market reaction seems consistent with that.

[nicosevos] 06/7/2023 06:52

There is a very big buyer at work here.

Stock moving from retail, flipping for small percentage gains,

to institutional hands looking for, and having the patience to hold for,

multi baggers.....
gla
Edit, C&P Twitter, Robin Mayes.

[theimpatientone] 06/7/2023 06:38

So as a layman could a geologist tell me are these results good or bad ? Were these results held up to help the big seller get out yesterday or are they good and a punishment to the seller for having got out ? Usually one of the two !!!

[weyweyumfozo] 06/7/2023 06:34

"These results have also highlighted the tantalum potential of this area, and the relevance of the recently constructed tantalum recovery circuit. The proximity of the Spodumene Hill Project to the existing operations provides an immediate opportunity for additional revenues from the project area by blending tantalum grades."

[3ootuk] 06/7/2023 06:25

Interesting that the tantalum circuit is also close to completion. We haven't heard too much about that.

[nicosevos] 06/7/2023 06:20

Wooooooooooooooooow.....Exceptional!!!!!!!

High grade lithium intersections suggest the presence of significant spodumene mineralisation.


We have also initiated a metallurgical programme to investigate the optimal beneficiation process for the recovery of both lithium and tantalum,

whilst also producing tin as a by-product."



LMEselect Tin 3 Month, USD/mt

Latest: $28,050...+$417 (+1.51%)

[3ootuk] 06/7/2023 06:17

Over 1.5‰ is good, under 1% isn't great
Very mixed bag here, depends what it all averages out at as there hasn't been a top cut
Cut off grade is quite often 0.4%
Should average out to a decent overall grade.

[theimpatientone] 06/7/2023 06:11

Spodumene Hill drill results are out in RNS