Andrada Mining (LSE:ATM) has reported a profit after tax of £2.5 million for the first half of its 2027 financial year, compared with a loss in the corresponding period last year, as higher production and tin prices contributed to increased revenue at its operations in Namibia.
Revenue rose 80% year on year to £20.6 million, while gross profit increased more than fourfold. The company also reported operating cash generation of £4.9 million, with its cash balance reaching £15.6 million at the end of the reporting period.
Andrada said operating costs per tonne remained broadly stable despite increased production volumes, contributing to the improvement in profitability.
The company’s Uis tin mine remained its principal producing asset during the period, with expansion activities continuing as part of its strategy to increase output.
A fully funded ore-sorting expansion at Uis is progressing according to schedule. Once completed, the project is expected to increase annual contained tin production to between 1,500 and 1,900 tonnes.
Management expects the additional production capacity to contribute to future operating margins and cash generation, although the anticipated benefits remain dependent on the completion and performance of the expansion.
Alongside its producing operations, Andrada continued exploration and development work across its other Namibian mineral assets.
At Lithium Ridge, exploration activities identified an extension of previously recognised mineralisation. The project is being advanced through a strategic partnership with SQM, with development activities focused on lithium, tin and tantalum opportunities.
At Brandberg West, the company reported progress in the regulatory approval process and results from ore-sorting test work. The project contains tungsten, copper and tin mineralisation and is being developed in collaboration with BWCAM.
Andrada said the regulatory milestone and test results would support further evaluation of the project’s development potential.
The company also undertook changes to its board during the reporting period as part of a governance renewal process.
Management described the first half of FY2027 as a transition in the group’s financial performance, with Uis generating positive earnings while investment continues across its exploration and development portfolio.
Andrada’s operations are centred on three principal assets in Namibia: the producing Uis tin mine, the Lithium Ridge exploration project and the Brandberg West polymetallic project.
The group is pursuing increased tin production alongside the development of lithium, tungsten, copper and tantalum resources through its existing assets and strategic partnerships.
For the second half of FY2027, Andrada’s priorities include completing the Uis ore-sorting expansion and progressing technical and development activities at Lithium Ridge and Brandberg West.
The company enters the second half with £15.6 million in cash and an ongoing investment programme aimed at expanding production capacity and advancing its wider critical minerals portfolio.
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