Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) chief executive Anthony Viljoen told investors its operational team has been performing extremely well, as the company updated on its activities during its second quarter.
The company, in a statement, said it achieved an 86% year-on-year improvement in tin concentrate output to 398 tonnes, whilst overall contained tin metal production was up 79% at 238 tonnes.
Viljoen highlighted that plant commission was a primary focus during the period.
It completed the tantalum circuit and produced 225 kilograms before ramping up.
The lithium plant is the priority and the company has now completed that work with initial testing underway – with the aim of producing a consistent saleable grade of lithium concentrate, Andrada noted.
“The completion of commissioning is key to expediting the metallurgical testwork that is essential to incorporating the lithium circuit into the Run of Mine production,” Viljoen said.
“The main objective of the testwork programme is to determine the optimal processing facility for extracting consistent, homogenous, saleable concentrate for both the chemical and industrial lithium markets.”
“The operational team has been performing extremely well on the existing plant annually. Therefore, the potential additional lithium revenue credits from the integration of the lithium plant to the main production circuit, could substantially enhance total revenue.”
He added: “The conclusion of several work streams as well as the completion of key financing partnerships this quarter, has notably strengthened the company's balance sheet for a transformational period of growth and development."
In terms of financials, Andrada confirmed it ended the quarter with US$7 million of cash.
It concluded a US$5.8 million financing in the period with the Development Bank of Namibia after the period end (on 5 September), completed US$10 million via convertible loan notes and advanced an arranged US$25 million financing from Orion Resource Partners which is expected to complete in November.
The company highlighted that its operating cash costs in the quarter were within management expectations, whilst its ‘all-in sustaining cash cost’ was below the guidance range for the full year, which is pitched at US$20,000 and US$30,000 per tonne.