Operational update for the quarter ended 31 May 2024

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 quarter ended 31 May 2024 (“Q1 FY2025”).

HIGHLIGHTS

Operations

• Year-on-year (“YoY”) increase in ore processed to 237 976 tonnes (Q1 FY2024: 217 189 tonnes).
• YoY increase in tin concentrate production to 364 tonnes (Q1 FY2024: 359 tonnes).
• YoY increase in contained tin production to 223 tonnes (Q1 FY2024: 216 tonnes).
• Plant availability increased to 93% (Q1 FY2024: 91%).
• Production of nine tonnes of saleable tantalum concentrate, constituting a 14% increase quarter-on-quarter (“QoQ”). Of this, five tonnes were shipped to AfriMet during the quarter per the offtake agreement
• YoY increase in realised tin price from USD 25 149 to USD30 839 per tonne of contained tin.

Financial

As set out below, management has maintained its guidance on costs despite the introduction of the Orion royalty charges and ongoing mining cost increases. The mine and plant performance are expected to remain stable during the financial year as the pre-concentration circuit and Continuous Improvement 2 (“CI2”) initiatives are implemented. The enhanced plant performance, following the completion of the expansion programme, is expected to reduce operational costs.

• Management guidance on quarterly average C11 costs is maintained at between USD17 000 and USD20 000 per tonne of contained tin. USD18 899 recorded in Q1 FY2025, which is within the guidance range.
• Management guidance on quarterly average C22 costs is maintained between USD20 000 and USD25 000 per tonne of contained tin. USD23 452 recorded in Q1 FY2025, which is within the guidance range.
• Management guidance on quarterly average all-in sustaining cost (“AISC”) is maintained between USD25 000 and USD30 000 per tonne of contained tin. USD28 774 recorded in Q1 FY2025, which is within the guidance range.
• Unaudited cash balance on 31 May 2024 was GBP11.9 million (USD15.2 million).

Anthony Viljoen, Chief Executive Officer, 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 in the future.

We successfully produced and delivered our first five-tonne consignment of tantalum to AfriMet during the quarter, with the second consignment produced and targeted for shipment in the second quarter. This is an important milestone for the Company, that places us firmly on the path to becoming a multi-mineral producer of critical metals. We look forward to a continuation of this supply agreement.

Given the diversity of the minerals within our mining licences, we have broadened the scope of our strategic process beyond just the Uis mining licence. The expansion of the scope has the potential to unlock multiple partnership opportunities across our portfolio of assets. This process is progressing well, and we look forward to providing an update.

We remain highly optimistic for the remainder of the year based on the value that will be unlocked across the portfolio.”

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