AfriTin Mining: An Emerging Tin and Lithium Producer in Namibia with Significant Growth Potential

• AfriTin Mining (ATM) is the only tin listed producer on AIM with expansion plans and potential lithium production.
• The company is focused on generating cash flow and de-risking their larger Phase II plant, which should provide insights about their scaling capabilities by Q3 of the current year.
• ATM has started working with ore sorting technology to potentially increase their feed grade by 2 to 4 times, and they are setting up a pilot plant for lithium concentration using their own cash.
• Inflation concerns have affected many but not profoundly impacted ATM, with their costs mainly related to fuel and steel. Namibia's significant renewable power production aids their operations.
• ATM places a strong emphasis on ESG, hiring 97% of its workforce from Namibia with 60% of their top management being female, and they've done a dual listing in Namibia to reinforce their connection to the region.

About AfriTin Mining

AfriTin Mining Limited (AIM: ATM) is a tin production and development company with mining operations in Namibia. The company is focused on ramping up tin production from its Uis mine and advancing development of its significant lithium asset. AfriTin is the only tin producer listed on the AIM market of the London Stock Exchange. The company has a market capitalization of around £100 million.

AfriTin's flagship asset is the Uis mine located in northern Namibia. Uis is one of the largest tin resources globally, with an estimated resource of 95,000 tonnes of tin across three deposits. The company commenced production at Uis in 2020 after completing construction of the Phase 1 pilot processing plant. This plant has capacity to produce around 650 tonnes per annum (tpa) of tin concentrate at an average grade of 65-70% Sn.

In addition to its tin assets, AfriTin has discovered a world-class lithium deposit at Uis with an estimated mineral resource of 93.4mt at 1.2% Li2O. The company is focused on fast-tracking development of the lithium project, with plans to establish a lithium pilot plant in 2022.

Interview with Anthony Viljoen, CEO of AfriTin Mining

Ramping Up Tin Production and Processing Efficiencies

AfriTin produced its first tin concentrate from the Phase 1 pilot plant in Q4 2020. The plant delivered tin production of 287 tonnes in 2021, generating revenue of US$14.3 million and EBITDA of US$7 million. With tin prices remaining robust, AfriTin is focused on ramping up tin output to fully capitalize on supportive market conditions.

The company is progressing expansion plans for the processing plant at Uis, with Phase 2 expansion expected to lift capacity to around 1,800 tpa of tin concentrate. Phase 2 construction is being funded via a US$35 million debt facility secured from Standard Bank Namibia. This expansion project remains on track for completion in Q3 2022.

Beyond the Phase 2 expansion, AfriTin has a multi-staged growth plan to eventually lift tin production at Uis to over 12,000 tpa. The company is assessing installation of ore sorting technology that could boost plant feed grades by 2-4 times. This would improve processing plant recoveries and profitability. AfriTin is also focused on driving further efficiencies in the plant through increasing economies of scale.

Fast-Tracking Lithium Development

AfriTin’s world-class lithium deposit presents a highly prospective growth opportunity for the company. With lithium demand surging on the back of electric vehicle adoption, AfriTin aims to fast-track development of its lithium asset to capitalize on strong market conditions.

The company has committed to constructing a lithium pilot plant in 2022, with capital funding allocated from operating cash flows. The pilot plant will facilitate production of lithium concentrates for offtake partner evaluation. AfriTin is initially targeting production of a spodumene concentrate grading 6% lithium oxide (Li2O).

The favorable geology of the lithium deposit provides potential to economically extract lithium. The lithium mineralization is hosted in pegmatite veins, allowing conventional hard rock mining. The lithium can be processed through the existing plant at Uis, presenting synergies with the tin operations. AfriTin is evaluating the potential to develop downstream processing to produce lithium hydroxide. However, the company’s focus in the near-term will be on establishing a spodumene concentrate operation.

Strong ESG Credentials

A key strength underpinning investment appeal for AfriTin Mining is the company’s robust environmental, social and governance (ESG) credentials. AfriTin has adopted a partnership approach with local communities, delivering strong social returns from its operations. The company sources 97% of its workforce from the surrounding community, with 60% of management roles held by Namibian nationals.

The Uis mine sources 70% of its power requirements from Namibia’s renewable energy grid. This provides a natural hedge against rising energy prices and supports ESG credentials. Overall, AfriTin’s production profile at Uis will have a low carbon intensity relative to industry peers.

Conclusion

AfriTin Mining presents an attractive investment opportunity exposure to tin, a critical technology metal enjoying a supply deficit. The company is ramping up tin production from its low-cost Uis operations in tandem with elevated tin prices. This is driving significant free cash flow generation to fund AfriTin’s multi-staged growth strategy.

Additionally, AfriTin’s world-class lithium project provides exposure to surging lithium demand from the global energy transition. Fast-tracking lithium production leverages the company’s existing infrastructure and mineral processing expertise.

Underpinned by a robust ESG profile and supportive government relations, AfriTin has established a solid platform supporting its ambitions to become a mid-tier African mining house. The company offers a unique exposure to critical technology metals poised to see tightening supply amid accelerating demand.