(Alliance News) - Andrada Mining Ltd on Thursday reported a loss for its latest financial year with decreased revenue from falling tin prices, but said it will focus on lithium production this year.
The Guernsey-based lithium, tin and tanalum producer, which has four mining assets in Namibia's Erongo region, swung to a GBP9.0 million pretax loss in the year ended February 28 from a GBP389,798 profit in financial 2022.
Revenue fell 28% to GBP9.8 million from GBP13.6 million. Andrada said this was primarily thanks to the average price of tin, which decreased by 36% to USD25,000 per tonne from USD39,000. Its basic loss per share meanwhile widened to 0.60 pence from 0.08p.
The cost of sales increased 13% to GBP10.5 million from GBP9.3 million. Administrative expenses more than doubled to GBP7.5 million from GBP3.7 million, as did finance costs which rose to GBP669,824 from GBP316,365.
Andrada also said its annual tin concentrate production increased 34% to 960 tonnes from 780 tonnes, with exports increasing to 33 shipments from 29 the previous year. Tin production came from Andrada's fully operational Uis mine, where it was able to increase capacity through expansion.
"In FY2023 we achieved, and in certain instances surpassed, our operational milestones such as the successful expansion of the Uis mine processing plant resulting in cost efficiencies," explained Chief Executive Officer Anthony Viljoen.
"Post-period, we have achieved additional significant milestones such as the production of the high purity, saleable petalite in May 2023 which has escalated the engagement with potential offtakers. In June 2023 we completed the lithium pilot plant construction thereby establishing Andrada as an emerging, potential lithium producer."
During the current financial year, Andrada said its main objectives will be commencing testing and production of lithium at its pilot plant. It also wants to attain take-off agreements and speed up its petalite exploration programme at its Spodumene Hill and Lithium Ridge projects. Additionally, the upcoming development of the Brandberg West licence area could add tungsten to its technology metal inventories.
Viljoen commented: "As we progress in FY2024, the focus will be to expedite lithium development through the strategic process, the lithium pilot plant, and the extensive exploration programme. Our significantly strengthened balance sheet will enable us to achieve these and other major milestones in the current financial year."
Andrada shares were down 0.7% at 6.85 pence in London on Thursday.
By Emma Curzon, Alliance News reporter
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