Andrada Mining (LSE:ATM) — Investor Presentation

0:02 Good afternoon, ladies and gentlemen, and welcome to the ANDRADA MINING LIMITED investor presentation. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish our responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. I would now

0:33 like to hand you over to the executive management team from ANDRADA MINING. Anthony Hinton, good afternoon. Good afternoon, and thanks for having us, and thank you to everybody for joining us today. Whether you're a current shareholder or considering investing in ANDRADA for the first time, I'm delighted to have you here. ANDRADA MINING is a company that explores and mines critical minerals. These are minerals the world absolutely needs for modern technology, electric vehicles, and renewable energy. We operate in Namibia in Southern Africa. The metals we mine include tin used in semiconductors and explore for lithium used in electrical vehicles and batteries, tungsten used in defense and alloys, and copper used in electrical applications.

1:22 Today, I'll walk you through what's changed in our company, where we think there's value for investors, what our three main projects are and how we plan to grow cash flow, and most importantly, today's message is about one thing: unlocking value. We believe there's a clear disconnect between the assets we have built, the cash flow we are generating and how the company is perceived. This presentation is about what has fundamentally changed, why that matters now and how we are moving to a phase of delivery and value realization. I won't go through the disclaimer in detail, but please note this presentation contains forward looking statements and is in no way considered investment advice. ANDRADA is a company on the rise.

2:09 We have built a mine from scratch and expanded production and are currently generating revenues at the Ouis mine. We are producing tin every single day. This is hugely important because most mining companies you'll hear about are just exploring or developing. They're not making money yet. We are. We have an experienced management team. These aren't people learning on the job. My engineering and operations teams have successfully started this mine and grown production steadily over five years. We know how to operate. We have $90,000,000 of growth funding already secured from strategic partners. These aren't small local investors, these are major international companies betting big alongside us on our projects.

2:56 We operate in Namibia, the best mining jurisdiction in Africa. Finally, our operations are growing strongly. In the last quarter, we increased tin production by 10% compared to last year. We're consistently hitting our recovery targets, so the key takeaway is this: the business has de risked significantly over the last year and we are now focusing on extracting this value for shareholders. To simplify the story, think of it, DRYDA, as three engines: first, OIS, our flagship tin operation. We're the only tin producer listed on the London AIM market. If you want to invest in a producing tin mine in the biggest tin bull run of recent times with tangible exposure on AIM, and ANDRADA as the company.

3:46 We are in year five of a one hundred year plus mine life. We are fully funded to expand this mine by increasing production through better equipment and processing. We're expanding our production volumes and our profit margins, and we're adding lithium production to the same operation, which will add a second revenue stream. Tin prices remain amazingly strong. They jumped 40% in 2025 and are currently over $45,000 per ton. That's excellent for our profit margins.

4:19 Second, lithium rich. Lithium rich is our recent lithium discovery and probably one of the most significant lithium discoveries in Africa in the last four years. If you follow the news, you will know lithium is the key ingredient in the burgeoning electric vehicle market. This is a high grade discovery with tin and tantalum as bonus metals in the same deposit. We're drilling aggressively to figure out how much lithium is actually there. The project is funded by our partners, SQM, who are the world's largest lithium producers. They're investing $14,000,000 to fund towards a full feasibility study. This provides a strong technical validation for the project and for my team.

5:06 Third, Brandberg West. This is our entry into the mind blowing tungsten market with additional upside from tin and copper. The project is fully funded, dollars 51,000,000 from our partners, BW CAM, for drilling and metallurgical testing. The additional copper credits add another valuable metal to the critical mineral mix of the company. We have also started an aggressive exploration program here. So you're no longer buying into a single asset story at ANDRADA, you're buying cash flow today plus fully funded growth across multiple critical minerals. WIES generates the cash, partners fund the growth, shareholders retain the upside.

5:52 This combination is almost unheard of on AIM.

5:58 What makes ANDRADA particularly compelling is the scale of this opportunity. This is what underpins the long term strategic value. When we started our prospecting in the area, our vision was to consolidate historic mines in a tin mineralized geological region to gain critical mass that would allow us to develop a mining company. With tin as the base load for exploration, we have discovered that associated with these various historic ore bodies were associated large amounts of critical minerals. Our subsequent work and established operations on the ground have now defined a district scale mineral system in the Orongo region, covering multiple commodities in addition to tin of tungsten, lithium, copper and tantalum.

6:44 And importantly, we are the first movers in this region. In addition to the metal value in the ground, here's why scale matters for you as an investor. All these projects are close together. That means we can share infrastructure, roads, power, processing facilities, technical staff, and logistics. When you're a single project company, you have to build everything from scratch. When you operate a district, you get huge cost efficiencies and expediency of delivery. These are critical minerals the world needs for smartphones, electric vehicles, renewable energy, defense, and advanced manufacturing. Demand is growing, supply is tight and we have exposure to all of them.

7:29 Multiple opportunities to create multiples of value. I'm going to hand over to Hitton now.

7:37 Thank you, Anthony. Let's now focus on Oiz, the foundation of the group. Currently, we are processing around 1,000,000 tons of ore. With production of roughly 1,500 tons of tin concentrate, this translates into positive EBITDA and free cash flow margins from OIS. Whilst this is a strong base, the real value lies in what we're going to do next. The growth plan is straightforward with low execution and funding risks and is driven by four main streams upgrading the crushing capacity, installation of the ore sorters which will be integrated with the crushing capacity, optimization of the mine and plant efficiencies and increasing the resource base. The successful implementation of this growth plan would enable OIS to achieve ore throughput of up to 2,500,000 tons, approximately 70% increase in the concentrate production.

8:33 And this would also improve the EBITDA margins as well as have a material impact on the free cash flow as a result of those volumes. Concurrently, the lithium development at Ouiz is also being accelerated through the collaboration with the EIB. In summary, it's all about scaling an existing operation efficiently and increasing the near term cash generation.

9:01 We are uniquely positioned across four commodity cycles at the same time. Firstly, tin. We continue to see ongoing structural supply deficits. We also see strong pricing up more than 40% in the last twelve months. This translates into immediate cash flow impact with the current production levels. Second, lithium. The market is corrected and is well positioned for the next EV cycle. Prices are up approximately 200% year on year, which provides better economics to both OIS and lithium rich.

9:37 Thirdly, tungsten, which has become globally strategic driven by the concentrated supply and rising demand in the defense industry. With prices up more than 500 percent in the last twelve months, it forms the foundation of the brunt per quest asset. And lastly, copper, which remains a critical commodity with limited substitutes and further supports the valuation of our brunt per quest asset. Why is this important to ANDRADA?

10:06 A diversified commodity portfolio reduces the reliance on a single commodity, enhancing its resilience and supporting a more stable long term growth profile. I'll hand back over to you, Anthony. Thank you, Hitton. So what drives value from here? Well, there are three clear levers over the next eight to eighteen months: at Wiese, increase volume with our new crushing circuit, enhance input grade and recovery by adding in all sorters, delivering consistent cash flow and advancing the lithium integration towards a bankable feasibility study. At Lithium Ridge, unlocking value through drilling and metallurgical test work, early stage resource estimation and advancing this as well towards a bankable

10:55 feasibility study. Brandberg West, that's about exploration and metallurgical work across the tungsten, tin and copper mineralization and potential value uplift immediately from the historic dumps. Now importantly, the market is currently valuing the company at around $95,000,000 But based on our internal project economics and valuation attributed to the partnerships, the underlying value potential could be significantly higher. Across all three assets, the work is funded, the timelines are defined and the milestones are clearly measurable. We've also recently strengthened the shareholder base. Recent funding introduced strong institutional investors, including Greg Coffee, Talent ten as well as a number of well known London investing institutions.

11:51 That's sophisticated investment coming in at an entry price base of 3.6p.

11:58 We now have strong institutional shareholders, globally recognized partners including SQM as well as A CAM through their subsidiary BW CAM and established banking relationships with local Namibian banks and more recently the European Investment Bank. This technically validates the assets, reduces funding risk and supports execution. We now have over $90,000,000 in non dilutive or project level financing. So why is this compelling?

12:36 Because the key building blocks are all now in place: a cash generating tin business, fully funded growth projects and multiple near term catalysts within the next eight to eighteen months. And importantly, production is growing, margins are expanding, and new value streams are being unlocked. So this is not a long dated story anymore. This is a company already delivering and about to scale. That's why we believe there is a clear pathway to unlocking value. Thank you very much everybody for your time. ANDRADA is open for business. We'll now open the session for questions.

13:20 Perfect. Anthony here. And if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that have been submitted already, I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can all be accessed via your investor dashboards. Guys, we have received a number of questions throughout your presentation this afternoon. Thank you to all of those on the call for taking the time to submit their questions. But, Josephine, at this stage, if I may hand over to you to chair the q and a with the team. If I pick up from you at the end, that'd be great. Thank you. Thank you very much, Drake. So the first question regards the tin expansion at Weiss, which seems to be never ending with shareholder dilution over the last three to four years. How are we going to reach the 2,600 tonnes by 2028 when we have missed previous targets?

14:16 Thanks, Josephine. And it's a very important question and a question that we get asked a lot. It's very important at this stage to just take a step back and and evaluate where we are as a company and especially on the on the tin plant. So when we started out the tin operation, bear in mind, this was this was only a a pilot plant. So sub subsequently to that, we got the pilot plant to production. It became part it became cash positive. We've made money. We've expanded that that facility on a on a 17% annual growth rate, and the the plant is now cash flow positive and is actually producing cash for the group. So we believe that the the plant is successful. We have we have delivered.

15:10 The numbers, obviously, aren't what people are wanting. But if you think what we've done, just, plant utilization is at 96%, Tin recovery is at 73% for the last three quarters. This is a producing base with a lot of momentum. Our our our area that we probably didn't take cognizance of was just the amount of tonnage that we that we needed to move. So in a plant in a plant like this, a gravity based plant, it's all about free flow of material through the plant. So what what inevitably happens is you do get bottlenecks within the plant. So once you've fixed one bottleneck, you need to move inevitably create a bottleneck somewhere else in the plant. The biggest area that we've what we initially focused on was was in the concentrate production side of of the plant, the wet side of the plant, so as to speak.

16:12 We've moved that now to the front front end of the plant, and we've identified that we need to move a lot largest tonnage through through that front end of the plant, which is why we initiated the projects of the the crushing and and more importantly, the all sorting that everyone asks asks asks about. So rather than try and separate these projects into two two separate entities, we decided to fix the the entire bottleneck up up front and make sure that we could get that tonnage through through the front end of the plant up front. And that's and that's what we are doing now. So we've reengineered how that how we were gonna integrate those allsorters, and we've added additional crushing capacities so so we we can get that. So so we are going we are going to increase tonnage over the course of the year.

17:09 The all sorting is now a viable, cost

17:15 entry to in into the preconcentration. So we as part of the reengineering, we've also reduced our capital requirements for that. But but, importantly, what we did cons subsequent to all of this was we increased the resource and reserve and are going going to continue doing that at Wiese. We also unlocked the value to introduce the partners at Lithium Ridge and Brandtburg West. And so now, as we've mentioned in the presentation, you know, we are prime for growth. We've got we've fully funded across all all the assets. We've got a team operating on the ground, understanding what what is required to expand this operation, and we're we're primed for growth. So, you know, inevitably have been delays, but I I I do believe that that they were all necessary to find the optimal solution for this operation.

18:13 Thank you, Anthony. You've touched on it there, but the next question is regarding the allsorters specifically, which have been put on a bit of a back burner. When are these going to be put in place and fully operational? Yeah. So as per the previous question, you know, we we've all the long lead items have been procured. They're on-site. The we are we are still procuring some of the the crushing equipment.

18:41 So, you know, you're gonna start seeing these all of these different project streams kick in over the next six to eighteen months. We've appointed engineering firms already to to not only do the development and construction of of these projects, but also so an oversight engineering firm to ensure that all of the milestones and timelines are are strictly adhered to. Brilliant. Thank you. When will the company provide shareholders with revised forecasts for TIN output?

19:19 So, look, I I mean, as as as we said, you know, we are the the the the once we are gonna be doubling the the production to just about in the next in the next year. So the tin concentrators we've said in in the in the financial year 2026, we're looking to increase to about 2,800 to about 3,000 tons. That that will take our content from about 1,100 odd tons to about 1,600 to about 1,800 tons. We also are increasing our waste stripping so that, you know, we we've got access to ore at depth so that we can supply all of these all of these new initiatives, and we can get more ore to the plant. So that's gonna that's gonna start taking place almost immediately.

20:12 So as as we said, you know, the next six to eighteen months, you're gonna see a a massive step change across multiple different work streams within within this portfolio.

20:24 The next question regards the RNS of drill results for Lithium Ridge, which didn't include how many meters out of the new total of 16,500 meters have been drilled so far. What is the total now? Yeah. So so I I do apologize. That was an oversight on on our part. But, essentially, we had originally planned for 14,000 meters across a 120 holes. So we are we did expand that that drilling program by about 18 odd percent just because, you know, what we were seeing there was was pretty exciting. So we, together with our partners, in increase the drilling tons or drilling holes to define the scale and

21:09 just understand a little bit more about the continue continuity of the mineralized system. So going forward, we'll we'll keep that keep that in mind and and make sure we we implement that in in all of our and s's going forward. Why weren't retail shareholders included in the latest fundraise? So, look, our share registers is very retail heavy, and, you know, we value the the loyalty of our retail shareholders enormously. This the recent raise was a was a deliberate exercise to target well known institutions and to to bolster the institutional share register.

22:00 So we do understand that there could have been some some unhappiness around the the retail not being included in the raise. But you can be rest assured that the institutions that we have brought on board are tier one institutions and will will massively support the company going going forward. But, you know, in in in future, we will always and always consult with the retail shareholders. Thank you. Will ANDRADA need to return to the market to fund the growth plans outlined in this presentation? So look, not not for any of our growth initiatives at this stage. You know, we're obviously across all with our joint venture partners at Lithium Ridge, Brandberg West, the recent capital raise.

22:55 You know, we've also got the lithium integration at WIIS supported by the European Investment Bank. We've also got a really good relationship with our investors sorry, our lenders in Namibia. So, you you know, we we we do believe that from an equity point of view, the company is fully funded at this stage. Thank you. The next question is, with the downgrade in CLN conversion price as well as the options to five p, aren't you essentially stating that's the price you see as fair value now? Will this make it hard to command a valuation far above in the years ahead? No. We we actually don't believe that. You know, with with the five p that we've actually put in, these convertible loan notes had antidilutive clauses in there.

23:46 So, naturally, you know, the prices were already down to about six and a half on on the conversion. So, basically, you know, if if we look at the sum of parts of what Anthony mentioned now, you've got various catalysts of of growth that drives value. And, you know, at at this stage, you look at lithium rich. Lithium prices are significantly up, you know, from the time that SPM entered into this. So the valuation of that inventory alongside what we've done with our Brentwood West asset tungsten, you know, value from there still has to be derived and will continue to be unlocked as we, you know, provide the results to the market from those initiatives. In addition to that, you know, the direct value for people looking at just a straightforward P and L and not your intangible value will come through the growth initiatives, which really takes our volumes up. And at the prices where we sit with today, you know, naturally, we'll start seeing, you know, good value coming out of the the the core cash asset alongside then the intangible value coming from those exploration sites, which are funded by the JV partners.

24:58 Thank you. And on the third party or supply agreement, are you able to tell us that meaningful discussions and progress are happening behind the scenes, and are there any loose timelines as to when it might be resolved? Yeah. So this is another great question. So, look, Quantico is a very clear asset that we've always had our eyes on, and we believe it will add tangible value to the the portfolio. We did enter into an arrangement with the with the license holders to acquire the acquire the assets on an option basis provided that they achieved three specific targets, one of which was that they cleared up the legal case, and that's the that they're dealing with currently with the third parties, and we we're following that with with a great interest.

26:01 The other the other was obviously the oil supply agreement, and third was the construction of the jig plant. So we've basically lived up to our end of the bargain. The the legal case does seem to be protracted. So as a result, they haven't lived up to the end of the the bargain. So, you know, it allows us to repurpose the jig plant, which we have done very successfully at at Wiese. But we do still want this asset. We do believe that it's that it is a a very valuable asset for the for the company, and we do hope that they reach resolution shortly within the within the the legal system that they're dealing with. Thank you. Thank you. And with the Middle East situation and the energy price spike, how much could this increase costs for the tin operation?

26:54 Are you still confident of meaningfully reducing AISC through scale this year despite higher input costs? Yes. Yes. We are. So with with regards to the conflict that's that's ongoing, you know, fuel is probably the main factor that will affect the unit cost. We do think that, you know, there would be about a four to 5% increase as a result of the fuel price increase. However, part of our expansion plans and ramping up of the actual mining activities doesn't incorporate a, you know, a a pure linear, I can say, extrapolation of of mining vehicles. What we are looking at is optimizing basically the fleet that that our mining contractors are using where they can take on, you know, double the loads and and use the same amount of fuel.

27:45 So we are sort of working, you know, alongside our capital growth projects with almost a continuous improvement on current operating efficiencies. And and there are multiple factors that we are gonna look at in terms of, you know, trying to bring down those unit costs alongside these expansions. The volume itself does give us, you know, quite a bit of a fixed cost dilution, but but but the other benefits do come, you know, from firstly upgrading these crushers where you reduce your your maintenance costs as well as, you know, the lubrications on on on on the motors, etcetera. But overall, you know, we we do see a a reduction in in in the unit cost as we bring these expansion programs in in into commission.

28:33 Thank you. And given the projected increases in throughput and the planned expansions at Wiese, are there any utility, including electricity and water, constraints expected over the course of the next couple of years? No. So so look, we we that's been one of the areas that we've been focused on with all of these additional projects is is making sure that we we get adequate power from the from the utility. We are reliant on the on the grid, so we do make these applications. We have upgraded our electricity substations to accommodate the the increases in in production. And then from the water perspective, we re we recycle 85% of our water. It is an it is an arid region.

29:25 The water that we do take is underground water. It's non potable, so it doesn't compete with human consumption. We are within our water extraction limits that that that we've been licensed for. So what we've focused on is maximizing our our scale according to the the infrastructure footprint that we operate within. So, you know, we're very comfortable of the infrastructure requirements and where we want to get to from a development point of view. Thank you. Some time ago, investors were told there were numerous suitors knocking at the door for lithium petalite.

30:10 Given the lithium price recovery, are there any suitors now? And what is the strategy this time around? So the strategy is we're gonna stick to our policy, and we're not gonna comment on market speculation or any specific strategic interests. But you can be best believe that the board reviews all options to create value for shareholders. What we can speak to is the strategy that we've actually implemented. So rather than, you know, having one strategic partner, that process resulted in in three strategic partners in SQM, ACAMS, and and the European Investment Bank. So the we we, you know, we do see that there's a lot of interest in in the this this portfolio. As as you can imagine, everyone is is hunting for all the elements that that we currently are producing or will be producing in the short term.

31:07 So it's it's it's a it's an incredibly exciting space to be in, and, you know, we'll obviously keep the market abreast of any developments related to that. Thank you, Anthony. Thanks, Anthony. The next question. These investor meet sessions allow existing shareholders to be updated and remain engaged and attract new investors. Why has it been so long since the company last did one of these? And will they be held more frequently in future? That's a that's a fair question. And, the the simple answer, we will be doing a lot more of these. You know, we've spent the last sort of twenty four months or so with our with our heads to the the grindstone. We've been building.

31:53 We've been expanding. We've been producing growth assets. We're incredibly proud of where we are as a company at the moment. So, you know, we we do wanna tell as many people as possible of of what we're doing and and what scale of what we have out there. So, yes, we will we would be delighted to meet and discuss with as many investors and future investors as possible on any forums available. Thank you very much, Anthony. The next question, regarding lithium rich, based on current progress, when do you expect to finish the stage one drilling, and when are the final results expected? What will follow the stage one drilling if f SQM stay interested?

32:42 So the that's there's there's quite a lot of angles to that, but but, essentially, the the drilling should be completed in the next six to eight weeks. Then from there, we we we as you'll see, we there's we constantly releasing results. It take there is a lead time from the laboratories to process these results. So, you know, we we we do try and release them as as efficiently as possible. There will be a stage gate where where SKM will look to continue the the financing. So far, all indications in terms of tonnage that that was required and and what have you seem to be be looking very positive that we will meet those those milestones, but that will be subject to the discussion with the joint venture partner at that stage.

33:36 Thank you, Anthony. Are you currently producing tantalum, or is the magnetic separation of tantalum still bypassed to increase tin output? So we are actually initiating the tantalum circuit again. At the sort of last quarter of last year, we actually prioritized cash flows with the high tin pricing to get advantage of that Through the sort of, you know, post raise and the higher materialization of those 10 prices, we we have recommissioned and and started up the tantalum circuit. So we would be seeing at least some level of tantalum credits coming through, you know, within the next quarter into. Thank you. I think we've got time for one more question.

34:24 What why do you think the market has not appreciated the potential of the tin tungsten of ANDRADA, but other AIM stocks like Tungsten West or Strategic Minerals have performed very strongly? Look. We we we just know what's what what we've got. And, you know, if if I don't like sort of doing doing a direct comparison with with other projects or other companies' projects. If everyone's got their own cross to bear. But needless to say, you you know, if if we did a direct comparison, you know, what we've what we have across all three assets would dwarf any of those comparables, you know, they're single asset companies that that have still got a long way.

35:11 A a lot of learning to do in terms of getting into production, first of all, and then scaling it. Value will come through. There's there's no doubt about it. I mean, we to have a portfolio of this at this magnitude in this market, it's it'll be impossible to ignore eventually. Thank you. And to that point, Anthony, are you confident that you will hit the increased tin tonnage to 2,800 tonnes following the work on the ore sorters, crushers, etcetera? And do you have time scales for this? The short answer, yes. Most definitely. We have we have learned from mistakes. We have learned from where where we need to debottleneck areas of the plant.

35:56 We we have restructured how we operate as a corporate entity. We've slimmed down our our decision making capabilities, and we are now laser focused in terms of developing these projects over the course of the next twelve months. Perfect, guys. If I may just jump back in at this point, and thank you very much indeed for being so generous of your time then addressing all of those questions that came in from investors this afternoon. Of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended just for you to review, and we'll publish all those responses out on the platform. But, Anthony, perhaps before really now just looking to redirect those on the call and to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

36:48 No. Well, I I would really like to thank everybody for participating today. It's really great to see the number of people that firstly participated and registered for for this webinar. The questions were really hard hitting. You know, we do we do obviously understand all the various platforms where discussions, are had about about the performance of the company. So we we do appreciate that that there is a very keen eye in terms of what we do going forward and and how we are positioned, but you can be rest assured that what we've built, what my team have built, and what we are aiming to achieve and is incredibly ambitious, but but we we are raise laser focused in terms of getting getting to that point now, and we we really appreciate everyone's support and loyalty. And we that's gonna be hopefully richly rewarded, in the next, in the next twelve months.

37:47 Anthony, that's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session? She will now be automatically redirected for the opportunity to provide your feedback in order that management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of ANDRADA MINING LIMITED, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.