Andrada Mining has returned to profitability, recording a £2.5 million (approximately N$58 million) after-tax profit for the six months ended 31 August 2026, compared with a £3 million loss during the corresponding period last year, as higher tin prices and increased production at its Uis mine in Namibia lifted revenue by 80%.
The AIM-listed company reported revenue of £20.6 million, up from £11.4 million, while gross profit more than quadrupled from £1.9 million to £8.3 million, reflecting improved operating performance and substantially higher realised tin prices.
The results, released on 21 October, mark Andrada’s first interim group profit after tax and come as the company prepares to expand tin production at Uis through a fully funded crushing and ore-sorting programme.
Andrada’s effective tin price increased by 57% to US$52,131 per tonne, compared with US$33,154 during the corresponding period, while contained tin production rose by 13% from 511 tonnes to 576 tonnes.
Tin concentrate production increased by 11% to 955 tonnes, supported by improvements in ore grades, processing rates and recovery efficiencies.
The company processed 538,810 tonnes of ore during the six months, compared with 527,583 tonnes previously, while the average plant processing rate increased from 143 to 153 tonnes per hour.
Tin recovery improved from 71% to 73%, while the average feed grade increased from 0.137% to 0.149% tin.
The improved production performance, combined with higher tin prices, helped lift Andrada’s gross profit margin from 16.4% to 40.3%.
Operating profit reached £4.7 million, compared with an operating loss of £0.9 million during the corresponding period, while adjusted earnings before interest, tax, depreciation and amortisation increased from £1.7 million to £4.5 million.
Chief executive officer Anthony Viljoen described the results as a turning point for the company, particularly because the stronger financial performance was achieved before the planned expansion at Uis.
“These results mark a significant turning point for Andrada, with strong operational performance at Uis translating into a step-change in profitability and cash generation,” Viljoen said.
“Revenue increased by 80% to approximately £21 million, gross profit more than quadrupled and we delivered a maiden Group interim profit after tax of £2.5 million.”
He said cash generated from operations reached £4.9 million, exceeding the amount generated during the whole of the previous financial year.
Uis targets 1,900 tonnes of tin annually
The company is now implementing an expansion programme designed to increase annual tin concentrate production by approximately 50% to 70%, targeting between 2,500 and 3,000 tonnes.
This would translate into approximately 1,500 to 1,900 tonnes of contained tin annually, compared with the 1,036 tonnes produced during the financial year ended February 2026.
The expansion is being financed partly through N$98 million secured from Bank Windhoek and the Development Bank of Namibia in August 2026.
According to Andrada, the new crushing circuit is being transported to the mine from China and India, while the ore sorters are being prepared for shipment by Intagrey.
The ore-sorting technology will remove lower-grade material before it enters the downstream concentrator, allowing the existing processing plant to handle higher-grade feed without requiring a proportionate increase in processing capacity.
The company expects the changes to improve production efficiency, increase concentrate output and reduce the applicable royalty band under its existing agreement.
Higher production could also improve operating margins by spreading fixed costs across a larger volume of payable tin.
However, the interim results show that some operating costs have increased as the company prepares for expansion.
All-in sustaining costs rose from US$24,808 to US$31,555 per tonne of contained tin, primarily because of additional waste stripping required to expose ore ahead of the planned increase in processing capacity.
The stripping ratio increased to 4.4, compared with 2.7 for the previous full financial year, with the additional stripping expected to continue until the end of February 2027.
The company also reported higher fuel costs and the introduction of a marketing fee payable to Thaisarco.
Despite these increases, direct C1 operating costs remained relatively stable at US$17,842 per tonne, compared with US$17,468 during the corresponding period.
Andrada said the higher realised tin price had substantially widened the difference between revenue per tonne and direct production costs.
The company also recorded an increase in royalty payments to Orion, with the royalty cost rising from US$3,054 to US$4,517 per tonne of contained tin.
Total Orion royalties increased from £0.9 million to £2 million, mainly because of higher tin prices.
Cash position strengthens
Andrada ended August with £15.6 million in cash and cash equivalents, compared with £8.9 million at the end of February 2026.
Net cash generated from operating activities increased to £4.9 million, compared with just £30,000 during the corresponding six months of the previous financial year.
The company invested approximately £6.5 million in property, plant and equipment and a further £1.3 million in exploration and intangible assets during the reporting period.
Total investing cash outflows reached £7.7 million, compared with £3.2 million a year earlier.
The stronger cash position was supported by approximately £8.1 million raised through equity financing and £6.7 million received from bank borrowings.
However, total borrowings also increased to £23.8 million, compared with £19.8 million at the end of February, reflecting the financing secured for the Uis expansion.
The company said its financial forecasts indicate that no additional funding is expected to be required over the next 12 months for its planned capital and exploration programmes.
The reported profit also benefited from commodity hedging arrangements, which produced a net gain of £1.72 million during the six months.
This included a £3.47 million gain on outstanding commodity swap positions, partly offset by £1.75 million in realised losses on settled contracts.
Excluding the net hedging gain, Andrada said it would still have recorded an operating profit of approximately £3 million.
Lithium Ridge expands to nine kilometres
Beyond Uis, Andrada reported further progress at Lithium Ridge, where exploration under its partnership with Chilean lithium producer SQM has expanded the identified mineralised strike length from six to nine kilometres.
The first-stage drilling programme was completed at approximately 16,500 metres across 143 diamond drill holes.
The programme has identified lithium mineralisation alongside tin and tantalum, which could provide additional revenue opportunities if future studies establish economically recoverable deposits.
Results released on 6 October included lithium mineralisation grading up to 2.11% lithium oxide over approximately five metres.
The company said the remaining drill core is being processed and analysed as work continues towards defining a mineral resource and conducting subsequent project studies.
At Brandberg West, Andrada is advancing a separate tungsten, copper and tin opportunity through its partnership with BWCAM.
The Namibian Competition Commission granted unconditional approval for the earn-in agreement in August, clearing a regulatory requirement for the partnership.
Ore-sorting testwork on historical material achieved approximately 90% mass rejection while recovering up to 91% of tungsten and 94% of tin.
The testwork also increased tungsten grades from 0.24% in the feed material to 1.45% in the sorted concentrate.
Further metallurgical testing, bulk sampling and exploration are planned to assess potential development options.
Viljoen said the company’s three Namibian assets now provide a platform for growth across tin, lithium, tungsten, copper and tantalum.
“We enter the second half of the financial year from a considerably stronger position with a critical minerals platform of three assets or value creators,” he said.
“The priority now is to convert our funded investment programme and strategic partnerships into higher production, measurable project progress and sustainable shareholder value.”
The company said the second half of its financial year will focus on implementing the Uis expansion while continuing technical evaluation at Lithium Ridge and Brandberg West.
