Andrada Mining Ltd (AIM:ATM, OTC:AFTTF)’s interim results were broadly in line with forecasts, said broker Stifel, with slightly lower corporate costs and higher capitalisation of waste stripping helping the bottom line.
As of 27 November, management reported an unaudited cash balance of approximately £23 million.
Stifel added it has reduced its target price to 15p (from 20p), reflecting the current weakness in lithium and tin prices which affect the spot NAV component of its weighted average approach to estimating a value.
Commodity prices aside, Andrada's established mining operations in Namibia are poised to deliver battery metal production into a period of anticipated supply deficits.
The company's prospective land package, meanwhile, offers meaningful exploration upside across the NaiNais-Kohero pegmatite belt.
'Buy' remains the broker’s investment stance.