Last checked at 16 Jun 2022 07:00
16 June 2022
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
AfriTin Mining Limited
("AfriTin" or the "Company")
Quarterly Production Update
AfriTin Mining Limited (AIM: ATM), an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to provide the unaudited quarterly production update for the Uis Mine ("Uis") for the first quarter ("Q1") of the 2023 Financial Year ("FY2023") ending 31 May 2022.
Highlights:
· Production of tin increased by 13% quarter-on-quarter ("QoQ") to 152 tonnes;
· Record tin recovery of 67% achieved during the quarter under review;
· All-In Sustaining Costs ("AISC")* improves 16% QoQ on the back of increased production and improved operational efficiencies; and
· Phase 1 Expansion Project on track for completion in Q3 of the calendar year.
* Refers to the All-in Sustaining Costs for the operating entity Uis Tin Mining Company (Pty) Ltd ("UTMC"), but excludes overheads at a Group level.
Anthony Viljoen (CEO) commented:
"Our tin-producing operation at the Uis Mine continues to deliver record-breaking performance. I am also pleased to note that the initiatives aimed at improving our unit costs are yielding positive results. These results are a testament to our team's capability. The Phase 1 Expansion Project is nearing completion and will further strengthen our tin revenue base.
The strong performance of the tin operation provides a solid platform for developing potential lithium and tantalum by-product revenue streams. Our position as an operating, cash-generating mining company allows us to fast-track development of near-term opportunities, as well as expanding our production and product portfolio."
Q1 Production Update
The Company achieved a record quarterly performance at the Uis Mine for Q1 of FY2023. Tin concentrate production for the period under review totalled 239 tonnes. Tin contained in concentrate increased by 13% QoQ to 152 tonnes.
A total of 152 kt of ore was processed at an average processing rate of 99 tph. Processing plant efficiency as measured by overall tin recovery improved 5% QoQ to a record of 67%. The average plant feed grade for the quarter increased 9% QoQ due to natural orebody grade variations in the current mining area.
AISC for UTMC decreased by 16% to US$23,526 (unaudited) per tonne of tin. This compares favourably with the realised average tin price of US$34,367 achieved for the quarter. The improvement in AISC can be attributed to higher tin production and operational efficiencies. Secondary factors contributing to quarterly cost variations include exchange rate fluctuations and work-in-progress ("WIP") movements. The Company remains committed to driving continuous improvement initiatives aimed at enhancing operational efficiencies and unit costs, and minimising cost fluctuations.
The QoQ performance for the Uis Mine is tabulated below:
Table 1: QoQ (Q1 FY2023 vs Q4 FY2022) production and cost performance of the Uis Mine.
Description | Units | FY2022 Actual Quarterly Average (Mar 2021 - Feb 2022) | Q4 FY2022 Actual (Dec 2021 - Feb 2022) | Q1 FY2023 Actual (Mar 2022 - May 2022) | QoQ Performance (% Change) |
Plant Availability | % | 87 | 89 | 89 | 1% |
Plant Utilisation | % | 79 | 82 | 78 | - 4% |
Plant Processing Rate | tph | 92 | 98 | 99 | 1% |
Ore Processed | t | 135,900 | 151,887 | 152,243 | 0% |
Feed Grade | % Sn | 0.147 | 0.137 | 0.149 | 9% |
Tin Concentrate | t | 201 | 216 | 239 | 11% |
Tin Contained in Concentrate | t | 124 | 134 | 152 | 13% |
Tin Recovery | % | 62 | 64 | 67 | 5% |
AISC for Uis Tin Mine | US$/t contained tin | 27,515 | 27,879* | 23,526 | -16% |
Tin Price Achieved | US$/t contained tin | 38,604 | 45,050 | 34,367 | -24% |
* FY2022 Q4 AISC has been restated to account for realisation cost (Logistics, Smelter Costs and Royalties) on a production volume basis rather than a sales basis.
Phase 1 Expansion Project
The Phase 1 Expansion Project is on track for completion during Q3 of the current calendar year. The expansion is projected to increase tin production by approximately 60%. The main civil constructions work has been completed and steel construction work is currently in progress.
Glossary of abbreviations
AISC | All-in sustaining costs |
FY | Financial year |
kt | Kilotonnes |
QoQ | Quarter-on-quarter |
tph | Tonnes per hour |
UTMC | Uis Tin Mining Company (Pty) Ltd (operating entity of the Uis Mine) |
WIP | Work-in-progress |
Glossary of Terms
Operating Costs | Excludes sustaining capital expenditure associated with developing and maintaining the Uis operation (unaudited) |
AISC = All-In Sustaining Cost | Incorporates all costs related to sustaining production and in particular recognising the sustaining capital expenditure associated with developing and maintaining the Uis operation, including pre-stripping waste mining costs (unaudited) |
* The Company's Financial Year runs from March to February. All reference to quarters applies to the financial year reporting period, unless stated otherwise.
AfriTin Mining Limited | +27 (11) 268 6555 |
Anthony Viljoen, CEO | |
Nominated Adviser | +44 (0) 207 220 1666 |
WH Ireland Limited Katy Mitchell | |
Corporate Advisor and Joint Broker | |
H&P Advisory Limited Andrew Chubb Jay Ashfield Nilesh Patel | +44 (0) 20 7907 8500 |
Stifel Nicolaus Europe Limited Ashton Clanfield Callum Stewart | +44 (0) 20 7710 7600 |
Tavistock Financial PR (United Kingdom) | +44 (0) 207 920 3150 |
Emily Moss Catherine Drummond Adam Baynes |
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, producing and exploration assets. The Company's flagship asset is the Uis Tin Mine in Namibia, formerly the world's largest hard-rock open cast tin mine.
AfriTin is managed by an experienced board of directors and management team with a current strategy to ramp-up production at the Uis Mine in Namibia to more than 10,000 tonnes of tin concentrate and 350,000 tonnes of lithium concentrate in a Phase 2 expansion, having reached Phase 1 commercial production in 2020. The Company strives to capitalise on the solid supply/demand fundamentals of tin and lithium by developing a critical mass of resource inventory, achieving production in the near term and further scaling production by consolidating assets in Africa.