London-listed tech-metals mining company, AfriTin Mining, which has a portfolio of mining and exploration assets in Namibia, reported that its Uis Tin Mine has delivered significantly increased production in the fourth quarter and 12 months ending 28 February 2022 of the 2022 Financial Year (FY2022).
Highlights:
- Annual ore processed increased 55% from FY2021 to 543,601 tonnes;
- Annual tin concentrate production increased 70% to 804 tonnes in FY2022;
- Annual tin concentrate production was 12% above nameplate capacity reflecting strong operational performance;
- Strong tin price: Average tin price in Q4 of US$45,050 (Q3: 39,025);
Anthony Viljoen (CEO) commented:
“Uis has performed strongly with production exceeding nameplate capacity by 12%, an excellent achievement particularly given the backdrop of record tin prices. The company ended the year in a strong financial position that will allow for the rapid deployment of the various growth initiatives, including expanded exploration, metallurgical test work on by-product extraction, specifically lithium, ore sorting test work and development of regional mining licence areas, that will be rolled out over the course of 2022.”
Q4 Production Update
The company delivered a strong quarterly operational performance, contributing to a record annual performance for Uis. A total record annual tin concentrate production of 804 tonnes was produced in FY2022, 12% above the annual nameplate production target of 720 tonnes. This represents a year-on-year (YoY) increase of 70% from FY2021.
An average plant processing rate of 92 tph was achieved for FY2022 against a design target of 80 tph. Over 500k tonnes of ore were processing during the year, a 55% YoY increase. Tin recovery remains above the targeted 60%.
Operating costs and All-In Sustaining Costs (AISC) for FY2022 were around $25,209/tonne and $27,515/tonne, respectively (unaudited). This compares favourably to the realised average tin price of $38,604 achieved for the year. Operating costs for Q4 increased 23% quarter on quarter of which the Directors believe about 50% of this increase, can be attributed to macro-economic factors related to increased smelting costs prices and exchange rate fluctuations. The balance is due to a drive for improvement in operational standards, with increased maintenance and spares inventory management. Various continuous improvement projects aim to reduce these costs further on a tin only basis.
The Phase 1 Expansion Project is currently in progress and is estimated to increase tin concentrate production by 67% by way of modular expansion of the existing processing facility The bulk of the civil construction and steel fabrication has been completed, with on-site steel construction ramping up.
Project construction is expected to be completed in Q3 of our Financial Year. Construction has been hampered by global supply chain shortages and constraints in local fabrication capacity.
Exploration Drilling Update
The exploration drilling programme currently underway on the V1/V2 pegmatite orebody aims to increase the resource classification for Li and Ta over the areas where Sn is presently classified within the measured and indicated categories. The exploration project commenced in Q3 FY (2021). A total of 1,674 m has been drilled since the commencement of the programme.
