Chamwe Kaira
Andrada Mining Limited reported a 32% increase in revenue to £23.8 million (N$563 million) for the year ended 28 February, supported by stronger tin prices, higher contained tin production, and initial sales of tantalum.
The average realised tin price rose 21% to US$31 081 per tonne, helping offset rising costs. Chief financial officer Hiten Ooka said the cost of sales rose 28%, largely due to a 22% increase in production costs driven by higher maintenance expenses from unplanned plant outages.
Finance expenses climbed to £6.3 million, adding pressure on net earnings. The royalty charge increased sharply from £0.1 million to £1.2 million, reflecting higher tin production and a full year of royalty payments compared to just two months in the previous year. Management expects the rate to ease as volumes at the Uis Mine grow.
Despite cost pressures, gross profit rose to £3 million from £1.7 million, while operating losses narrowed 52% to £3.9 million. The improvement was supported by £1 million in other income, including foreign exchange translation gains and tin derivative instruments, and a one-off £1.7 million participation fee from SQM. Administrative costs fell 18% to £5.1 million after staff cuts and reduced professional fees following restructuring at the Johannesburg office.
In November, Andrada signed a landmark agreement with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd, a global leader in lithium production, to collaborate on developing Andrada’s Lithium Ridge asset. The deal marks SQM’s first lithium partnership in Africa, boosting Namibia’s position in the global lithium market.
Looking forward, Andrada expects the completion of its CI2 programme in the 2026 financial year to enhance plant reliability and reduce downtime.
On financing, Bank Windhoek Limited extended working capital and short-term facilities to manage cash flows and provided a N$10 million (£429 000) guarantee to Namibia Power Corporation to secure electricity supply. In February 2025, Andrada secured US$2.5 million (£2.0 million) from long-term shareholder the Orange Trust to fund the acquisition of a jig plant, part of its tin production expansion strategy.
