Tin boom lifts Andrada into profit

Andrada Mining swung to a profit of about N$55 million in the first half of its financial year as higher tin prices and improved operating performance at its Uis mine in Namibia lifted revenue by 80%, strengthening cash generation ahead of a planned production expansion.The AIM-listed miner reported a profit after tax of N$55 million, for the six months ended 31 August, while revenue increased to N$453 million.The turnaround reflects a combination of higher realised tin prices and improved production performance. Andrada’s effective tin price rose 57% to US$52,131 per tonne, while contained tin production increased 13% to 576 tonnes.The results, released on Wednesday, mark the company’s first interim group profit after tax and come as it prepares to increase production capacity at Uis through a crushing and ore-sorting programme.Chief executive Anthony Viljoen said the financial improvement had been achieved before the planned expansion began delivering its full benefits.“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.Tin prices boost marginsAndrada’s gross profit margin increased to 40.3% from 16.4% a year earlier, reflecting higher realised tin prices and improvements in processing performance.Operating profit reached N$103 million, compared with an operating loss of N$19.7 million in the corresponding period last year. At Uis, the company processed 538,810 tonnes of ore during the six-month period, compared with 527,583 tonnes a year earlier. The average processing rate increased to 153 tonnes per hour from 143 tonnes.Tin recovery improved to 73% from 71%, while the average feed grade rose to 0.149% tin from 0.137%. Tin concentrate production increased 11% to 955 tonnes.The production gains contributed to the earnings recovery, although higher tin prices remained a significant driver of the increase in revenue.Andrada also benefited from commodity hedging arrangements, which generated a net gain of N$37.8 million during the period. This included a N$76.3 million gain on outstanding commodity swap positions, partly offset by N$38.4 million in realised losses on settled contracts.The company said it would still have recorded an operating profit of about £3 million without the net hedging gain.

Tin boom lifts Andrada into profit

Comments

Namibian Sun 2026-10-22

Please login to leave a comment

Tin boom lifts Andrada into profit

Comments

Namibian Sun 2026-10-22

Please login to leave a comment

Subscription Required to Access Content ×

Login

Subscription Required to Access Content