What does AfriTin own?
Uis is a formerly producing mine that was shut down more than 20 years ago when the tin price hit a nadir.
AfriTin (LON:ATM) has now got the operation back up and running again, at least on a trial mining basis.
According to a historic resource estimate prepared by SRK, Uis has more than 70mln tonnes of ore containing 95,000 tonnes of tin.
The mine plan worked out by SRK says that that’s enough to allow for production through to 2063, although initially, AfriTin has much more modest goals.
In February, AfriTin revealed that it had discovered significant lithium, grades in addition to tin, in pegmatites in the ML 133 Licence, located in the Nainais area of Nambia.
ML 133 is outside of the current development area at the Uis tin mine.
How are operations going?
The concentrate is trucked from the mine to the port of Walvis Bay in Namibia, and then shipped to Thailand. The company is paid 80% of the value upon bill of lading at Walvis Bay.
Nameplate capacity is 60 tonnes of tin concentrate per month.
There was some disruption from the coronavirus, but by mid-June 2020 operations were back on track and building up to the nameplate capacity.
Accordingly, AfriTin Mining generated revenue of just over £1mln during the six month period to June 2020.
The loss before tax was also just over £1mln.
Post period end the phase 1 pilot plant has continued to ramp up and achieved a production record of 37.5 tonnes of tin concentrate in August 2020.
The company expects to complete the ramp-up to steady-state production of 60 tonnes of tin concentrate per month by the end of 2020.
Shipments of tin concentrate have been sold to Thaisarco under an agreement that has been renewed for a further 12 months. This is likely to increase revenues further as production continues to ramp up.
While the ramp up continues, the company will be supported by renewed and increased working capital and VAT facilities with Nedbank Namibia.
What the boss says; Anthony Viljoen, chief executive
“We have been collaborating with AfriMet to establish multiple channels for revenue generation from the trade in tin and tantalum products.
“We will continue to deliver this operation as we ramp up production to nameplate of 60 tonnes of tin concentrate per month."
- Ore already being stockpiled
- First concentrate shipment in November
- Hits nameplate of 60t per month early in 2020
- Bankable study for phase 2 upgrade