Andrada Mining H1 FY2026 - 31 August 2025

• Tin concentrate production rose 14% year-on-year to 858 tonnes, with contained tin increasing 11% to 511 tonnes
• Operating loss narrowed 35% to £0.9 million from £1.5 million, with administrative expenses down 26%
• Revenue increased 12% to £12.2 million, supported by higher volumes and 6% increase in average tin prices
• All-in sustaining costs declined 4% to US$24,808 per tonne of contained tin
• Completed £4.5 million investment from Talent10 Resources and commenced lithium exploration with SQM Australia

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF) is a London-listed Guernsey-based technology metals company that operates exploration, development, and early-stage production assets in Namibia. The company's portfolio includes tin, tantalum, lithium, tungsten, and copper assets. Its primary operation is the Uis Mine, located on mining licence ML134, which produces tin and tantalum concentrates.

Operational Performance and Production Growth

The Uis Mine processed 527,583 tonnes of ore during the six months ended 31 August 2025, 10% higher than the prior year's 481,504 tonnes. The plant processing rate increased 8% to 143 tonnes per hour. Tin concentrate production reached 858 tonnes, up from 752 tonnes in the prior period, resulting in 511 tonnes of contained tin.

Tantalum concentrate production increased 12% to 27.1 tonnes, generating revenue of £0.3 million, which represented 3% of group revenue. The company noted that tantalum carries low incremental production costs. Plant availability remained at 90%, whilst utilisation improved from 92% to 94%.

Safety metrics showed improvement, with the lost time injury frequency rate falling to 0.00 from 1.74, and the total recordable injury frequency rate decreasing from 6.50 to 4.53. The company reported no fatalities during the period.

Financial Results and Cost Structure

Revenue grew 12% to £12.2 million compared to £10.8 million in the prior period. However, gross profit decreased 27% to £1.9 million due to a 25% increase in cost of sales to £10.3 million, driven by higher production costs including mining and processing expenses. The average tin price achieved during the period was US$33,154 per tonne, up 6% from US$31,397.

Administrative expenses declined 26% to £3.7 million from £5.0 million, primarily due to reductions in employee costs, professional fees, and travel expenses following restructuring of the Johannesburg head office. This contributed to the operating loss improving to £0.9 million from £1.5 million.

Unit costs showed improvement across key metrics. C1 operating costs decreased 6% to US$17,468 per tonne, whilst C2 costs fell 6% to US$19,594 per tonne. All-in sustaining costs declined 4% to US$24,808 per tonne. The Orion royalty increased to US$3,054 per tonne from US$1,611 due to the scaling mechanism based on concentrate tonnage sold. Net loss for the period was £3.0 million compared to £3.2 million in the prior year.

Development Projects and Strategic Partnerships

The Ore Sorter Project underwent reengineering during the period, achieving over 20% savings on outstanding capital. The project is designed to increase tin and tantalum concentrate production by approximately 60% through pre-concentration of run-of-mine ore. Long lead items have been procured, with fabrication scheduled to commence in the first half of 2026 and commissioning planned for the second half.

The lithium expansion project aims to produce concentrate from the existing ore feed. A techno-economic assessment confirmed the technical and financial potential, and the company intends to progress towards a Definitive Feasibility Study phase during 2026. Exploration drilling in April 2025 yielded results including intersections of up to 1.13% tin, 1.76% lithium oxide, and 281ppm tantalum from 13 proximal pegmatites within 3 kilometres of the processing plant.

The Jig Plant, constructed in partnership with Birca Mining for processing third-party high-grade ore, completed construction in August 2025 on time and budget. Commissioning is in progress, with material flow issues being addressed. The planned ore supply agreement with Goantagab Mining has been delayed following a court judgement that halted major mining activity on the Goantagab claims pending final court decision.

In June 2025, Talent10 Resources invested £4.5 million for an 8% equity stake in the company. The partnership with SQM Australia for Lithium Ridge development received Namibian Competition Commission approval, enabling commencement of a 14,000 metre diamond drilling programme in August 2025, comprising approximately 120 orientated holes.

Outlook

Andrada has established the Ore Sorter Project as a key deliverable for 2026, with construction activities planned to begin in the first half of the year. The lithium expansion project is progressing towards Definitive Feasibility Study phase, with management engaging potential offtake and development partners. The exploration programme at Uis Mine continues as part of the strategy to expand the resource base towards 200 million tonnes. The company indicated it will no longer publish quarterly cost and pricing estimates in operational updates, with these metrics to be reported at interim and year-end results.