Andrada Mining Limited Operational Update - August 31 2025

• Record quarterly tin concentrate production of 453 tonnes, representing 17% year-on-year growth, underpinned by enhanced operational efficiency and improved plant utilisation of 96%
• Jig Plant commissioning completed on schedule and within budget, positioning the company for accelerated production and improved recovery rates in the coming quarters
• Strong pricing environment with realised tin prices averaging USD 33,308 per tonne, up 4% year-on-year, benefiting from robust global market fundamentals
• Tantalum production milestone achieved with record six-month output of 27 tonnes, providing valuable product diversification and premium pricing opportunities
• Strategic lithium partnership with SQM Australia progressing well through Stage 1 exploration drilling at Lithium Ridge, advancing the company's critical minerals diversification strategy

Andrada Mining Limited (AIM: ATM) is a London-listed critical minerals producer focused on developing a portfolio of conflict-free production and exploration assets. The company operates primarily through its flagship Uis Mine in Namibia, which was formerly the world's largest hard-rock open cast tin mine and is currently being redeveloped as a major tin-tantalum-lithium producer. The company's strategic vision centres on creating a diversified critical minerals portfolio targeting a mineral resource of 200 million tonnes within the coming years. 

Operational Performance & Production Records

The quarter ended 31 August 2025 marked a significant achievement for Andrada's operational capabilities, with tin concentrate production reaching a record 453 tonnes, representing a substantial 17% increase compared to the same period last year. This performance was driven by enhanced operational efficiency across multiple metrics, including improved plant utilisation of 96% compared to 93% in the previous year. The processing rate increased 11% year-on-year to 144 tonnes per hour, whilst maintaining consistent feed grades at 0.139% tin content.

Recovery rates showed notable improvement, reaching 73% during the quarter compared to 69% in the previous quarter, demonstrating the effectiveness of the company's continuous improvement programme. The combination of higher throughput and improved recoveries resulted in contained tin production of 273 tonnes, marking a 14% year-on-year increase. These operational gains were achieved whilst maintaining steady ore grades, highlighting the technical expertise of Andrada's operational team.

The first-half performance further reinforced the sustainability of these improvements, with tin concentrate production increasing 14% to 858 tonnes and contained tin rising 11% to 511 tonnes compared to the previous year. CEO Anthony Viljoen commented:

"This Quarter reflects another period of robust operational performance underscoring Andrada's emergence as one of the pre-eminent producers in the international tin market." 

Capital Projects & Infrastructure Development

The successful completion and commissioning of the Jig Plant represents a pivotal milestone in Andrada's expansion strategy, delivered on schedule and within budget during the quarter. This facility is designed to enhance overall recovery rates and boost tin concentrate output whilst reducing unit mining costs, creating a triple benefit for shareholders. The plant's commissioning at the end of August 2025 positions the company for further production acceleration in subsequent quarters.

The Continuous Improvement Programme (CI2) continued to deliver tangible results during the period, with the filter press completion and commissioning scheduled for the end of the third quarter. These infrastructure investments form part of Andrada's broader strategy to optimise plant efficiency and increase metal output through systematic operational enhancements. The company's disciplined approach to capital allocation has ensured that these projects maintain strong returns whilst supporting long-term production growth.

Looking beyond the current facilities, Andrada's partnership with world-class lithium producer SQM Australia has commenced comprehensive exploration activities at the Lithium Ridge mining licence. The Stage 1 exploration drilling, geological mapping and sampling programmes are progressing well and are expected to provide valuable insights into the scale and continuity of spodumene-bearing pegmatites across the licence area. This strategic collaboration provides access to world-class expertise and technology whilst allowing Andrada to maintain its operational focus on tin production.

Strategic Business Development & Market Performance

Market conditions remained favourable during the quarter, with realised tin prices averaging USD 33,308 per tonne, representing a 4% increase year-on-year. This pricing strength was supported by reduced global inventories and resilient industrial demand, creating an advantageous environment for Andrada's expanding production profile. The company's ability to capitalise on strong market fundamentals whilst increasing production volumes demonstrates the effectiveness of its operational strategy.

Tantalum production provided valuable diversification benefits, with the first-half output reaching a record 27 tonnes, equivalent to approximately 3 tonnes of contained tantalum. During the quarter, approximately 10 tonnes of concentrate were shipped to customers, contributing to the company's revenue diversification and premium pricing opportunities. Engagements with prospective lithium offtakers remain active, with constructive commercial discussions ongoing despite subdued short-term lithium prices.

The company's cost management initiatives continued to show progress, with underlying costs remaining within target parameters when excluding the Orion royalty. For the first half of 2026, C1 costs were USD 19,606 per tonne, whilst AISC reached USD 26,947 per tonne, reflecting mining cost inflation in line with broader sector trends. Management expects additional efficiencies and lower unit costs as production volumes from the newly commissioned Jig Plant ramp up and stabilise at steady state operations.

Looking Forward

Andrada is well positioned for continued growth with several key catalysts supporting the outlook for the remainder of the financial year. The Jig Plant commissioning provides a clear pathway to increased tin concentrate production and improved recovery rates, whilst strong tin market fundamentals supported by supply constraints and industrial demand growth create a favourable operating environment. The company's operational excellence initiatives, including enhanced recovery rates and plant utilisation improvements, provide competitive advantages that should translate into sustained performance improvements and unit cost reductions as production volumes increase.

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