Andrada Mining moved from operating cash consumption to generating £4.7 million during the year ended February 2026, but its annual loss widened to £10.7 million as financing expenses and commodity-hedging losses outweighed improved production and revenue from the Uis mine.
The Namibia-focused critical-minerals company generated an additional £8.7 million from operating activities compared with the preceding financial year, when operations consumed £4 million.
Revenue increased by 34% from a restated £22.4 million to £30.1 million, while gross profit more than doubled from £3 million to £7.7 million. Andrada’s operating loss narrowed from £3.9 million to £2.6 million, and earnings before interest, tax, depreciation and amortisation increased from £500 000 to £3.3 million.
The improved operating performance did not reach the bottom line because Andrada recorded £5.16 million in losses on tin-price contracts and incurred £6.94 million in finance expenses.
After finance income and a £1.34 million tax expense, the group’s loss increased by 9% from £9.8 million to £10.7 million. The board will not recommend a dividend.
More tin produced at Uis
Uis processed 1.04 million tonnes of ore during the year, up 8% from 965 058 tonnes.
Tin concentrate production rose by 15% from 1 507 tonnes to 1 740 tonnes, while contained tin production increased by 13% from 921 tonnes to 1 036 tonnes.
Tin recovery remained at 72%, and shipments increased by 7% from 59 to 63. Tantalum concentrate production, however, declined from 51 tonnes to 37 tonnes.
Stronger global prices also supported the results. Andrada’s average realised tin price increased by 20% from US$31 081 to US$37 133 per tonne.
Revenue from tin sales rose from £21.9 million to £28.8 million, accounting for nearly all the group’s customer revenue. Tantalum generated £713 444, compared with £485 547, while lithium sales contributed only £6 991.
The gross profit margin improved from 13.2% to 25.7%, showing that higher prices and production allowed Andrada to retain more revenue after production and selling costs.
Operating cash flow of £4.7 million did not represent free cash flow because the company spent another £7.9 million on investing activities, including plant upgrades and work on its Namibian exploration and development assets.
Tin contracts turn against company
Contracts intended to protect Andrada against falling tin prices became costly when the market rose substantially above the prices fixed under the agreements.
The company recorded £800 460 in realised losses settled during the year and a £4.36 million unrealised loss on contracts that remained open at the end of February.
An earlier Standard Bank Namibia arrangement fixed 20 tonnes of tin concentrate a month at US$33 000 per tonne until May 2025.
Andrada replaced it with Bank Windhoek contracts covering 20 tonnes monthly at US$34 400 between June 2025 and May 2026. Another contract fixed 20 tonnes monthly at US$42 000 from December 2025 to May 2026, increasing to 40 tonnes a month between June and November 2026.
Andrada valued the outstanding contracts using an average forward tin price of US$57 200 per tonne. The difference between that estimate and the lower contracted prices resulted in a £4.75 million derivative liability at year-end.
The company settled some contracts early in March at below the prevailing market price. It said this would reduce the loss reported during the 2027 financial year because much of the anticipated cost had already been recognised.
Andrada calculated adjusted EBITDA of £8.4 million after excluding the £4.36 million unrealised hedge loss and a £675 973 impairment against money advanced under an ore-supply arrangement with Goantagab Mining.
Finance costs absorb earnings
Andrada’s £6.94 million finance bill was equivalent to almost 90% of its £7.7 million gross profit.
Finance expenses included a £2.43 million fair-value loss on royalty debt, £1.47 million in interest on convertible loan notes and £1.36 million in interest on bank loans and overdraft facilities.
The company recognised £893 077 in Namibian government royalty expenses, compared with £652 270 a year earlier. Expenses linked to a gross-revenue royalty held by Orion Resource Partners increased from £1.24 million to £2.19 million.
Production costs rose from £17.3 million to £19 million, while total cost of sales increased by 15% to £22.4 million.
Borrowings declined by 8% to £19.8 million after Andrada converted US$3.1 million owed to its largest shareholder, The Orange Trust, into equity. The conversion released the Uis jig plant from security obligations attached to the debt.
Other financial liabilities more than doubled from £13.9 million to £29.5 million, reflecting the Brandberg West partnership’s put option, commodity swaps, Thaisarco’s US$3 million exclusivity payment and movements in the value of royalty debt.
More funding secured for expansion
Andrada raised £5 million during the financial year, including a £4.5 million investment by Talent10 Resources.
It subsequently raised US$11 million through another equity placement in April 2026 to finance additional crushing capacity, stripping and resource work at Uis.
Uis Tin Mining Company secured N$98 million in August through equal loan facilities from Bank Windhoek and the Development Bank of Namibia for ore sorting and replacing secondary crushers.
Bank Windhoek released its N$49 million contribution in August. The Development Bank paid half of its equal contribution, with the balance expected in September.
Andrada said the facilities completed the funding required for the planned Uis upgrades.
The group ended February with £8.9 million in cash, although £1.1 million was held in debt-service reserve accounts and £7.4 million received from BWCAM was restricted to Brandberg West exploration and development.
Exploration at Lithium Ridge is being funded through Andrada’s partnership with SQM, while BWCAM is financing work at Brandberg West. The European Investment Bank has also agreed to provide up to €2 million in technical assistance for studies on the proposed Uis lithium expansion.
Andrada reported that Namibians constitute 98% of its workforce and 88% of senior management, while local procurement exceeded 80%.
