Revenue at Andrada Mining surged to £12.2 million, for the six months ended 31 August 2025, up from £10.8 million a year earlier. This 12% rise was driven by firmer tin prices and higher concentrate volumes. The average tin price climbed to £33,154 per tonne, equal to about N$746,000 per tonne, providing the primary uplift to the company’s earnings.
This upswing set the pace for a period marked by tightening costs, stabilising margins and improving financial discipline. Operating losses narrowed from £1.5 million in the first half of 2024/25 to £0.9 million, reflecting more efficient spending across the business. Administrative costs dropped from £5.0 million to £3.7 million, after staff restructuring and cuts to corporate overheads. Andrada says these reductions mark a shift toward a leaner operating style following several years of growth-focused expenditure.
Gross profit eased to £1.9 million from £2.6 million, affected by a 25% rise in cost of sales linked to inflationary pressure in mining and plant operations. The company emphasised that these costs remain typical of an operation undergoing optimisation and expects margins to improve as the Jig Plant, ore sorter and lithium expansion advance.
Unit costs moved in the right direction. C1 cash costs fell from US$18,640 to US$17,468 per tonne of contained tin. C2 costs declined to US$19,594, while all-in sustaining costs eased to US$24,808. Management attributes these declines to rising production volumes and stabilising plant performance. The Orion royalty rose from US$1,611 to US$3,054 per tonne sold, driven by higher prices, though the company expects this rate to soften as output grows.
Losses also tightened at the bottom line. Net loss fell from £3.2 million to £3.0 million, despite a £0.2 million tax charge introduced under revised Namibian legislation. Excluding that one-off tax effect, the underlying net loss improved to £2.8 million, a 13% reduction year-on-year.
The balance sheet reflected both investment momentum and the demands of expansion. Total assets rose 3% to £69.0 million, driven by continued investment in property, plant and equipment. Receivables more than doubled to £7.9 million due to tin prepayments. Cash and cash equivalents fell to £1.6 million from £6.1 million a year earlier and £2.7 million at the end of February, underscoring the capital-heavy nature of the period.
Equity declined year-on-year from £29.5 million to £25.5 million due to accumulated losses. However, equity rose 8% within the reporting period following a £5.5 million increase in share capital from the June 2025 equity raise and the issuance of shares in lieu of interest on convertible notes. The £4.5 million injection from Talent10 Resources served as a key milestone that deepened institutional support.
Total liabilities increased to £43.2 million, up 15% from the previous year, driven by a £5.4 million rise in borrowings and payables. Yet liabilities fell 6% from February 2025 after a £1 million reduction in borrowings and a £0.9 million drop in financial liabilities.
Cash flow movements underline the pressure of rapid expansion. Andrada began the period with £1.8 million in cash and closed with £0.7 million, despite raising £2.8 million in funding. Net cash outflows of £1.7 million were dominated by £1 million in interest and lease payments and £0.7 million in bank-debt repayments. Investment remained robust: the company spent £3.2 million on capex, of which about £3 million went into Uis.
Andrada continued using price hedging to secure stable tin revenues. A completed Standard Bank hedge locked in US$33,000 per tonne on twenty tonnes per month up to May 2025. A current Bank Windhoek hedge secures US$34,400 per tonne to May 2026. A derivative liability was recognised to reflect the fair-value difference between these fixed prices and LME spot prices.
The overall financial picture remains that of a miner still posting losses but steadily tightening its performance profile. Rising revenue, lower unit costs, reduced overheads and stronger institutional backing are aligning to prepare Andrada for the next phase of development at Uis and Lithium Ridge.
