Slide 1: Andrada Mining Limited Investor Presentation
Andrada Mining Limited Investor Presentation Initial saleable lithium concentrate MAY 2023 LSE / NSX: ATM OTCQB : ATMTF
Slide 2: Disclaimer
DISCLAIMER 1 These presentation slides (the “Slides”) do not comprise an admission document, Any investment, investment activity or controlled activity to which the Slides relates listing particulars or a prospectus relating to Andrada Mining Limited (“the is available only to such persons and will
Slide 3: Corporate Overview
CORPORATE OVERVIEW Andrada is well-positioned to be a significant tech - metal producer
Slide 4: Corporate Overview: Investment Case
CORPORATE OVERVIEW : INVESTMENT CASE 3 WORLD CLASS RESOURCE BASE NEGATIVE AISC¹ • Globally significant lithium, tin and tantalum resource in Namibia • Negative AISC of US$490/t LCE² highly competitive during • Upside spodumene potential on adjacent mining licences commodity cycles • Successful expan
Slide 5: Corporate Overview: A Seasoned Board
CORPORATE OVERVIEW : A SEASONED BOARD 4 Broad knowledge on mining, geology and financial markets GLEN PARSONS TERENCE GOODLACE LAURENCE ROBB MICHAEL RAWLINSON Non-executive Chairman Non-executive Director Non-executive Director Non-executive Director • NED Capella Minerals Limited • NED Gold Fields
Slide 6: Corporate Overview: An Experienced Management
CORPORATE OVERVIEW : AN EXPERIENCED MANAGEMENT 5 Over 90 years combined experience in mining, engineering chemistry and finance ANTHONY VILJOEN HITEN OOKA Chief Executive Officer Chief Financial Officer Mining entrepreneur Qualified chartered accountant • Over 20 years operating in Africa across mul
Slide 7: Corporate Overview: Fully Permitted Assets in Namibia
CORPORATE OVERVIEW : FULLY PERMITTED ASSETS IN NAMIBIA 6 In a stable mining jurisdiction in Africa • Democratic government and independent legal system • Supportive mining law • Mining the largest revenue contributor to Namibia’s economy • Upgraded Walvis Bay deep-water port - 230km from Uis Mine al
Slide 8: A World Class Resource Portfolio
CORPORATE OVERVIEW : A WORLD CLASS RESOURCE PORTFOLIO 7 Licenced areas within the significant tech-metal Erongo region in Namibia Li Lithium Uis Ta Brandberg West Sn Li Ta Tantalum Sn W Cu Sn Tin Spodumene Hill (B1/C1) Cu Li Ta Sn Lithium Ridge Copper (Nai-Nais) Sn Li Ta W Tungsten Mine in productio
Slide 9: A World Class Resource Portfolio: Opportunity to Increase Resource
CORPORATE OVERVIEW : A WORLD CLASS RESOURCE PORTFOLIO 8 Opportunity to substantially increase the resource K-Cluster P-Cluster Processing Plant V1V2 Orebody (Current Resource) MRE UIS V1V2 pegmatites Tin Lithium Tantalum February 2023 (Sn) (Li₂O) (Ta) Grade 0.15% 0.73% 86 ppm Gross resource tonnes 8
Slide 10: Andrada Uis Compared to Renowned Hard-Rock Lithium Resources
CORPORATE OVERVIEW : A WORLD CLASS RESOURCE PORTFOLIO 9 Andrada Uis compared to renowned hard-rock lithium resources • Resources drawn to scale • Uis resource illustrated for Andrada. • V1/V2 resource at 138 million tonnes. • V1/V2 represents two of the over 180 swarm of pegmatites on the Uis licenc
Slide 11: Corporate Overview: Planned Tin Production Growth
INVESTMENT CASE CORPORATE OVERVIEW : PLANNED TIN PRODUCTION GROWTH 10 Tin production has de-risked the potential lithium opportunity 2020A 2022A 2025E 2027E Uis mine Uis mine • Licence area: 18 000 Ha • Phase 1 ramp-up completed ahead • Acquired by Andrada in 2017 of schedule • Production capacity i
Slide 12: Lithium Development
LITHIUM DEVELOPMENT Lithium resource will make Andrada a high-margin producer of technology metals
Slide 13: Lithium Development: Investment Case
LITHIUM DEVELOPMENT : INVESTMENT CASE 12 Potential for multi-asset lithium production Large lithium resource at 1.45 million tonnes LCE Existing open-pit tin mining operation : Lithium contained in the same ore body as tin Scalable production through integration of existing mine site Concentrate sui
Slide 14: High Purity Saleable Concentrate
LITHIUM DEVELOPMENT : HIGH PURITY SALEABLE CONCENTRATE 13 Initial saleable petalite concentrate at 4.16% Li₂O from offsite piloting programme • Lithium piloting on ML134 (Uis), 133 (Nai Nais) and 129 (B1C1) at Bond Equipment • Objectives: - Determine mineralisation variability - Produce saleable con
Slide 15: Lithium Development: Roadmap
LITHIUM DEVELOPMENT : ROADMAP 14 Lithium bulk sampling pilot plant and strategic partnership focus Calendar year 2022 2023 2024 2025 Tin production Lithium expansion 2.5 Mtpa plant feed Drilling 15,000 tpa LCE 2,500 tpa tin metal UIS MINE 30 tpa Ta2O5 (ML134) Piloting Feasibility Study 1 Mtpa plant
Slide 16: Potential Expansion Economics for Uis
LITHIUM DEVELOPMENT : POTENTIAL EXPANSION ECONOMICS FOR UIS 15 As per Preliminary Economic Assessment (PEA) released in April 2022 Metrics Phase 1B Phase 2 PEA assumptions Current metrices expansion Tin price per tonne US$30,000 US$26,000 Petalite price per tonne US$800 US$2,000 Ore throughput (ROM)
Slide 17: Lithium Development: Metallurgical Testwork
LITHIUM DEVELOPMENT : METALLURGICAL TESTWORK 16 Focus on optimisation and piloting PROOF OF CONCEPT OPTIMISATION AND PILOTING FLOW SHEET SELECTION Dense medium Petalite Concentration Bulk sample testing separation Variability testing Integrated Flotation process flow testing Ore sorting Petalite to
Slide 18: Lithium Bulk Sampling Pilot Plant
LITHIUM DEVELOPMENT : LITHIUM BULK SAMPLING PILOT PLANT 17 Construction of an on-site bulk sampling pilot facility on time and on budget • Completion of the bulk sampling pilot plant construction at the end of June 2023 • Pilot plant to leverage on existing bulk infrastructure services • Pilot campa
Slide 19: Strategic Partner to Expedite Lithium Revenue
LITHIUM DEVELOPMENT : STRATEGIC PARTNER TO EXPEDITE LITHIUM REVENUE 18 Appointment of PLC as strategic financial advisor • Double-digit unsolicited approaches from international lithium entities from five continents • Strategic partner sought to participate in the acceleration of the Company’s lithi
Slide 20: Strategic Process Ethos
LITHIUM DEVELOPMENT : STRATEGIC PROCESS ETHOS 19 Several unsolicited requests for engagement from international entities • A well informed and strategically driven process is key to finding the right partner • Ensuring sustainable long term value creation is Andrada’s goal • The process includes a s
Slide 21: Precedent Lithium Transactions 2016 – 2023
LITHIUM DEVELOPMENT : PRECEDENT LITHIUM TRANSACTIONS 2016 – 2023 20 Lithium M&A activity expected to dominate this year due to the global push into green energy transition Lithium M&A over time Select precedent lithium transactions Deal value Equity acquired EV/R&R 19 4 6 6 6 26 9 4 Date Buyer Targe
Slide 22: Lithium Ridge Mining Licence (133)
LITHIUM DEVELOPMENT PIPELINE : LITHIUM RIDGE MINING LICENCE (133) 21 Potential lithium mineralisation along 6km strike • 3,300 ha licence area, 35km from Uis • Pegmatite hosted mineralisation with high Sn-Li-Ta resource potential • Abundant, closely spaced pegmatites • Observable lithium minerals in
Slide 23: Spodumene Hill Mining Licence (129)
LITHIUM DEVELOPMENT PIPELINE : SPODUMENE HILL MINING LICENCE (129) 22 Visible spodumene mineralisation • 4,900 ha licence area less than15km from Uis • Spodumene confirmed by XRD • Mineralogically similar to the Uis pegmatites • Artisans have mined to 3m depth primarily for tantalite • Drilling prog
Slide 24: Capital Structure and Funding
CAPITAL STRUCTURE AND FUNDING Robust capital structure will expedite significant milestones
Slide 25: Shareholding Snapshot
CAPITAL STRUCTURE AND FUNDING : SHAREHOLDING SNAPSHOT 24 Top 10 institutional shareholders implying viable investment proposition Shareholder as at 30 April 2023 Country % IC 17 May 2023 The Orange Trust (New York) USA 15.63 Open price : pence 5.80 Canaccord Genuity Wealth Mgt (London) UK 8.79 Close
Slide 26: Update on Debt Facilities
CAPITAL STRUCTURE AND FUNDING : UPDATE ON DEBT FACILITIES 25 DBN funding to be concluded end of May 2023 Source of funds US$ million Comment Reported balance as at end of the period. Tin plant operations Cash as at 28 February 2023 10.3 cash generative Standard Bank Facility 8.3 Existing facility fu
Slide 27: To Expedite Expansion
CAPITAL STRUCTURE AND FUNDING : TO EXPEDITE EXPANSION 26 Workstreams funded through available facilities and operational cashflows EXPEDITED LITHIUM PRODUCTION RAMP UP OF DRILLING PROGRAMMES • Bulk sampling pilot plant lithium and tantalum • Targeted resource of 200 million tonnes integrated product
Slide 28: Sustainability
SUSTAINABILITY ESG principles are integrated into Andrada’s business model
Slide 29: Sustainability: Strategy
SUSTAINABILITY : STRATEGY 28 Strategic objectives • Develop and implement the ESG roadmap and goals for Andrada Mining’s sustainability journey. Safety • Collaboratively develop and implement departmental-specific sustainability roadmaps CONTINUAL Excellence Collaboration • Establish and maintain ou
Slide 30: ESG Roadmap for 2023 Calendar Year
SUSTAINABILITY : ESG ROADMAP FOR 2023 CALENDAR YEAR 29 Focus on creating value for all stakeholders Action emissions and net-zero strategy Development of and develop a human rights due biodiversity policy diligence programme Q1 2023 Q3 2023 Q2 2023 Q4 2023 Improve community and To publish the second
Slide 31: Key Highlights Summary
KEY HIGHLIGHTS SUMMARY 30 FOUR ASSET TECH METAL CHAMPION TRANSFORMATIONAL 2023 CALENDAR YEAR • Globally large asset in tin, lithium and tantalum • Construction of bulk sampling pilot plant for completion end June • Uis mine profitable on tin concentrate - Significant revenue potential • Significant
Slide 32: Appendix
APPENDIX
Slide 33: Market Fundamentals - Why Lithium
APPENDIX : MARKET FUNDAMENTALS - WHY LITHIUM 32 Supply deficit anticipated by 2030 STRONG DEMAND GROWTH FORECAST WITH GROWING USE OF PETALITE HARD ROCK LITHIUM IN BATTERIES NO FORESEEABLE RETURN TO SURPLUS SUPPLY Source: Bloomberg NEF, Wood Mackenzie, Broker research, Benchmark Mineral Intelligence
Slide 34: Market Fundamentals - Why Tin and Tantalum
APPENDIX : MARKET FUNDAMETALS - WHY TIN and TANTALUM 33 Long-term demand driven by increased utilisation of technology WORLD OUTLOOK FOR TIN FEEDSTOCK TIN SUPPLY FORECAST 600 000 600 000 • Semi- conductor and new technology led demand 500 000 • Limited substitution, limited new supply 400 000 400 00
Slide 35: Brandberg West Exploration Licence
APPENDIX : BRANDBERG WEST EXPLORATION LICENCE 34 Work plan overview • Initial drilling within the historical pit and along northern extension, - Programme divided into two parts due to budget constraints - Initial portion has been approved • Near- mine exploration programme - To follow up on litho-g
Slide 36: Lithium Feedstock Specifications
APPENDIX 35 Lithium feedstock specifications Chemical Market Technical Grade Chemical Grade Glass/Ceramics LiOH.H2O Spodumene Ore: (>56.5 wt%) >6% Li2O >1% Fe2O3 Lithium <8% Moisture Hydroxide Battery Grade Chemical Grade Monohydrate LiOH.H2O Petalite Ore: (>56.5 wt%) >4% Li2O Battery production <0.
Slide 37: Contact Us
REGISTERED OFFICE POBox 282 Oak House Hirzel Street, St Peter Port 3rd Floor 150 Cheapside Investor Relations CONTACT US Guernsey GY13RH 7-10 Chandos Street London 18 St. Swithin's Lane, T: +27 11 268 6555 London EC2V 6ET United London investorrelations@andradamining.com W1G 9DQ Kingdom EC4N 8AD REP
Slide 38: Andrada aims to be a tier one technology metals mining company
37 “Andrada aims to be a tier one technology metals mining company, sustainably creating value for all stakeholders.” Anthony Viljoen, CEO