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ANDRADA MINING LIMITED

ATM JSE Listed

: Investment Analysis: Andrada Mining Limited (JSE: ATM) Date:** 09 January 2026

Step 1: Data Gathering & Source Verification

I have reviewed the financial data for Andrada Mining Limited based on the most recent reporting cycle.

Reporting Periods & Source Documents:

  • Latest Interim Results: Unaudited Interim Financial Results for the six months ended 31 August 2025.

  • Link to File (PDF)

  • Latest Annual Financial Statements: Audited Annual Financial Statements for the year ended 28 February 2025.

  • Link to File (PDF)

SENS Activity (L12M Highlights):

  • 27 Nov 2025: Interim Results released (Revenue +12%, Operating Loss narrowed).
  • 29 Aug 2025: Annual Results FY25 released.
  • 09 Sep 2025: Partnership update with SQM regarding Lithium Ridge development (Strategic Earn-in).
  • 27 Jun 2025: Strategic Subscription & Placing (Equity raise of ~£4.5m).

Step 2: Metric Extraction

Note: Andrada is dual-listed (AIM: ATM). Primary liquidity is often in London. JSE price is derived from parity. Assumed Share Price: ~95c (ZAR) based on ~3.8p (GBP).

| Metric | Value | Notes | | --- | --- | --- | | Market Cap | ~R1.6 Billion | Calculated at GBP/ZAR ~24.00 on £66m market cap. Small-cap junior miner. | | Dividend Yield (L12M) | 0.0% | The company is in a growth/capital expenditure phase. No dividends expected in the near term. | | Liquidity Check | Low / Illiquid | Risk Flag: The JSE listing often sees days with zero or very low volume. Large orders must be worked carefully or routed via the LSE (AIM) to avoid slippage. | | P/E Ratio | N/A (Loss) | Reported a Net Loss of £3.0m for H1 FY26. | | Net Asset Value | ~24c per share | Total Equity £25.5m. |

Step 3: Operational & Strategic Analysis

Business Overview Andrada operates the Uis Mine in Namibia. Historically a tin mine, it is being redeveloped into a polymetallic asset producing Tin (current revenue driver), Tantalum, and potentially Lithium (future value driver). The company identifies as a technology-metals producer.

Performance Trend (H1 FY26 vs H1 FY25)

  • Revenue: Growth (+12%) to £12.2m. Driven by higher Tin prices and a 14% increase in tin concentrate production.
  • Profitability: Operating Loss Improved. The operating loss narrowed to £0.9m (from £1.5m). This indicates the company is approaching operational breakeven, but administrative expenses (£3.7m) still weigh heavily on the bottom line.
  • Production: Processing plant stability is improving (throughput +10%).
  • Cash Position: Tight. Cash dropped to £1.6m (Aug 2025) from £6.1m (Aug 2024), highlighting the capital-intensive nature of their expansion and the constant need for funding/debt facilities.

Sector Context

  • Tin Market: Tin prices have been resilient (trading >$30k/t), supported by electronics demand and supply disruptions in Myanmar/Indonesia. This is a tailwind for Andrada.
  • Lithium: The lithium price crash (2023-2025) dampened hype, but the long-term structural deficit remains. The SQM partnership protects Andrada from financing the risky exploration phase of Lithium Ridge alone.

Step 4: The Verdict

Bull Case (Why Buy) Strategic Optionality: You are effectively buying a producing Tin mine that is nearing cash-flow neutrality, with a "free" option on a massive Lithium resource. The partnership with SQM (a global lithium giant) validates the geological potential of their assets. If they crack the code on economic lithium separation at Uis, the re-rating would be exponential.

Bear Case (Why Sell) Cash Crunch & Dilution: The company is perpetually "almost" profitable but burns cash on capex and overheads. With only £1.6m in cash (at interims) and significant liabilities, the risk of further equity raises (dilution) or high-cost debt is acute. The JSE illiquidity traps local investors who cannot exit quickly during bad news.

Fair Value Estimate 120c - 150c (Speculative)

  • Justification: Based on a multiple of projected future earnings if Tin production stabilizes at 1,500tpa and Lithium credits come online.

Final Rating SPECULATIVE BUY

Rationale: Andrada is a high-risk, high-reward junior miner. The operational improvements in FY25/26 are tangible, and the tin revenue provides a floor that pure-play explorers don't have. However, position sizing must be small due to the liquidity risk and the tight balance sheet. This is for the "venture capital" portion of a portfolio, not the "safe haven" portion.

AI Generated Analysis Last Updated: 2026-01-14