Primed for an Explosion in Value – Why Andrada’s next six months Could Be Huge.
“…Our year end is in February. Since then we have increased and hit record production months. Margins have increased considerably. I would anticipate the Interims will show a vastly different picture…”
Andrada Mining is progressing from its roots as a single-commodity tin story to a diversified critical minerals play with a growing polymetallic portfolio.
The tin produced at the Uis project in Namibia provides the cash-generating foundation for a portfolio that now includes lithium, tantalum, tungsten and copper. Chief executive Anthony Viljoen describes the polymetallic nature of the assets as “incredibly unique” offering multiple potential revenue streams.
Andrada is not simply waiting for exploration success. Uis is operating, production has reached record monthly levels and higher tin prices are feeding through into margins.
Viljoen says the company has moved from a roughly £4 million loss to £4.7 million of operating cash generation, while shipments have increasingly been booked at around $55,000 a tonne rather than the $37,000 used in the previous financial reporting.
There is more growth planned. The ore-sorting project and associated developments are expected to increase tonnage by between 50% and 70% in the first half of next year – potentially giving the company a “vastly different production profile” within 12 months.
Then there is lithium.
Andrada believes Lithium Ridge could become a significant asset, with Viljoen calling it one of the most significant lithium discoveries in southern Africa in the past five years. Plus the involvement of SQM, one of the world’s largest lithium miners, provides technical expertise, market access and potentially a route to accelerate development.
Perhaps the biggest wildcard is Brandberg West, where tungsten and copper have added another layer of potential value. Partners are investing up to $50 million to earn 49% of the project. Viljoen calls it one of his favourite deposits and its mineralisation still contains “so many unanswered questions,” with the company committed to further clarity about its potential.
That creates the attraction – but also the challenge. Andrada must convert geological optionality into cash flow and ultimately a higher valuation per share.
Anthony is confident that can be achieved. As he explains to Sarah Lowther in this video interview all the assets are “primed for an explosion in terms of value creation for the company” with significant news flow expected over the next six months.
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The author was remunerated but does not hold shares in the company
