Q3 Operational update for the period ended 30 November 2023

Production of saleable lithium concentrate from the pilot plant

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the African technology metals mining company with a portfolio of mining and exploration assets in Namibia hereby provides an unaudited operational update for the third quarter ended 30 November 2023 for the financial year 2024 (“Q3 FY2024”).

HIGHLIGHTS
Operations

• Over 100% year-on-year (“YoY”) increase in tin concentrate to 346 tonnes (Q3 FY2023: 145 tonnes).
• Over 100% YoY increase in contained tin metal to 202 tonnes (Q3 FY2023: 87 tonnes).
• Plant utilisation increased to 86% (Q3 FY2023: 63%).
• Production of 10 tonnes on-specification saleable lithium concentrate.
• Lithium pilot plant (“Pilot Plant”) production ramp up to 250 tonnes per month planned for Q1 CY2024.

Exploration

• Reverse Circulation (“RC”) drilling programme completed on the Lithium Ridge licence area.
  • All holes intersected pegmatites with significant lithium mineralisation along a 6km strike length.
  • Spodumene and petalite identified as the primary minerals.
• Commencement of an exploration programme on Brandberg West licence area.
  • Historically a producer of tin and tungsten with strong indications of copper mineralisation.
• Plans completed for lithium exploration drilling campaigns on all mining licence areas in CY2024.

Metallurgy

• On-going metallurgical testwork for production of battery grade lithium hydroxide.
• Preliminary metallurgical investigations on Spodumene Hill and Lithium Ridge material.
• Metallurgical testwork to optimise production at Uis progressing well.

Sustainability

• Completion and publication of the 2023 Sustainability Report for the 12 months ended February 2023, highlighting Andrada’s contribution of GBP33 million to the Namibian economy since inception.
• Lost Time Injury Frequency Rate (“LTIFR”) at 2.45 (Q3 FY2023: 5.47) at the end of the quarter compared to 0.86 at the end of Q2 FY2024.
• Increased social engagement during the quarter to align with the objective of contributing to resilient communities.

Financial

• Average C1¹ operating cash cost at USD 18 917 was within management guidance of between USD17 000 and USD20 000 per tonne of contained tin.
• Average C2² operating cost at USD 21 386 was within management guidance for the year of between USD20 000 and USD25 000 per tonne of contained tin.
• All-in sustaining cost (“AISC”) ³ at USD 30 452 was slightly above management guidance of between USD25 000 and USD30 000 per tonne of contained tin.
• Receipt of USD 25million from Orion Mining Finance funding, including a USD12.5 million tin royalty. (See announcement of 16 November for more details of this arrangement).
• Conclusion of the Development Bank of Namibia NAD 100 million funding and receipt of 50% of the funds for the Continuous Improvement 2 (“CI2”) project at Uis Tin Mine. (See announcement dated 5 September 2023).
• Unaudited cash balance on 30 November 2023 of GBP21 million (USD26 million).

Post-period

• Production of spodumene concentrate
• High-grade spodumene concentrate, at a grade of 6.8% Li₂O (75% spodumene), produced from laboratory-scale flotation tests of two Lithium Ridge exploration samples.
  • The flotation test achieved a Li₂O recovery of 76% or, specifically, 80% spodumene recovery.

Appointment of joint corporate brokers

• Appointment of Joh. Berenberg, Gossler & Co. KG (“Berenberg”) and WH Ireland Limited (“WHI”) as joint corporate brokers to access a wider investor base and top-tier research capability.

Anthony Viljoen, Chief Executive Officer, commented:
“We made significant strides in Q3 towards becoming a multi-technology producer. Drilling confirmed notable lithium intersections at Lithium Ridge, and post-period metallurgical production of spodumene concentrate marked major milestones towards entering downstream lithium markets. We also launched an exploration programme at Brandberg West, with the potential to expand our portfolio to include tungsten and copper.

“Operational performance improved against the same quarter in FY2023 due to the lower comparative base. We aim to further enhance cost efficiencies by increasing tin production through the CI2 project. The tin royalty will provide the necessary funding to produce up to 2,000 tonnes of contained tin per annum, positioning Andrada as a major global supplier.

“To further strengthen our investor outreach, we have appointed Berenberg and WHI as joint corporate brokers. Together with our current corporate brokers, Hannam & Partners, these appointments give us extensive reach into the UK and European capital markets.”

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