AfriTin  (ATM ), a Namibia-focused mining company, announced today unaudited interim results for the 6 months ended 31 August 2022 (1H22).

AfriTin reported a production increase of 23% in 1H22 to 454 tonnes of tin concentrate from its Uis mine, compared to 386 tonnes in 1H21. The company's Phase 1 processing plant continued to exceed targets and nameplate capacity.

Revenue decreased slightly to £4.7m in 1H21 as a result of declines in the price of tin as well as timing of settlement adjustments within the reporting period.

AfriTin said the commissioning of the Uis Phase 1 Expansion Project was now complete, with production expected to ramp up to more than 1,200 tpa of tin concentrate in 2H22.

Cost of sales increased to £5.7m, reflecting inflationary pressures of high fuel prices and higher maintenance costs. Except for fuel prices, all cost factors are expected to be resolved in 2H22 as higher production volumes from the Phase 1 Expansion Project kick in.

Cash and cash eq was at £12.2m on 15 November 2022, subsequent to the US$53.6m proposed funding package announced in September 2022.

 

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While AfriTin saw a small decrease in revenues and increased cost of sales in 1H22, that is a temporary setback that will be offset in 2H22 by much higher production levels expected from the Uis Phase 1 expansion. With the project now complete, production is expected to ramp up to over 1,200 tpa of tin concentrate in 2H22.

Post-period, AfriTin negotiated a US$53.6m funding package that will ensure the company remains well-funded to accelerate growth in tin operations, and more importantly, fund its development of lithium and tantalum by-product opportunities. AfriTin aims to fast-track lithium production and become the only AIM-listed lithium producer.

With the price of tin dropping in recent quarters, a refocusing on lithium and tantalum will be a valuable hedge for the company, as demand of those tech-critical metals is on the rise.

Additionally, global asset manager Orion has been proposed as a key strategic investor for AfriTin, providing a conditional US$25 million investment. Orion has a strong history of cultivating sustainable shareholder value in the mining sector. As such, their interest in AfriTin constitutes a compelling endorsement of the company's current work and future potential.

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