Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) said it is ideally placed to capitalise on the recent tin price rally with production picking up and costs stable.
Over the quarter, realised tin prices rose from US$25.149 to US$30, 839 per tonne of contained tin on a year-on-year comparison.
Namibia-based Andrada processed around 238,000 tonnes of concentrate in the three months to May 2024, producing 364 tonnes of tin concentrate (Q1 FY2024: 359 tonnes).
Contained tin production from the Uis mine rose to 223 tonnes (Q1 FY2024: 216 tonnes) though this was lower than the previous quarter due to unplanned plant outages, which it says have now been resolved.
Andrada added it also produced nine tonnes of saleable tantalum concentrate.
Anthony Viljoen, chief executive, commented: “Exposing planned ore zones has reduced our stripping ratio at Uis, to 1.5:1 as at the end of May 2024.
“Coinciding favourably with our expansion of both tin concentrate and contained tin production, we are ideally positioned to capitalise on the tin price rally that began in April 2024.
“Despite the plant outages during the quarter, I am pleased to confirm that all the issues were resolved and will not repeat.
Going forward, Andrada repeated earlier cash cost guidance of between US$ 20,000 and US$ 25,000 per tonne of contained tin compared to US$ 23,452 in the first quarter.
Cash balances on 31 May 2024 were £11.9 million (US$15.2 million).
“We remain highly optimistic for the remainder of the year based on the value that will be unlocked across the portfolio," Viljoen added.