Andrada’s H1 FY2026: revenue up, losses narrowing, and the growth engine warming up
Andrada Mining’s unaudited interim results for the six months to 31 August 2025 show a business that’s getting leaner operationally while building towards a bigger production base. Revenue rose 12% to £12.2 million, driven by higher tin output and a firmer tin price. The operating loss narrowed by 35% to £0.9 million as admin costs were cut back following a corporate restructure.
There are some moving parts – higher cost of sales trimmed gross profit, commissioning delays at the new Jig Plant, and a court-driven pause to third-party ore supply – but the core Uis Mine continues to trend in the right direction.
Key numbers investors should know
| Metric | H1 FY2026 | H1 FY2025 |
|---|---|---|
| Revenue | £12.2 million | £10.8 million |
| Gross profit | £1.9 million | £2.6 million |
| Operating loss | £0.9 million | £1.5 million |
| Net loss | £3.0 million | £3.2 million |
| Ore processed | 527,583 tonnes | 481,504 tonnes |
| Tin concentrate | 858 tonnes | 752 tonnes |
| Contained tin | 511 tonnes | 462 tonnes |
| Tantalum concentrate | 27.1 tonnes | 24.3 tonnes |
| Tin price achieved | US$33,154/t | US$31,397/t (company disclosed as £31,397) |
| C1 cash cost (note 1) | US$17,468/t | US$18,640/t |
| All-in sustaining cost – AISC (note 3) | US$24,808/t | US$25,236/t |
| Cash and cash equivalents (end) | £1.6 million | £6.1 million |
| Total assets | £69.0 million | £66.9 million |
| Total equity | £25.5 million | £29.5 million |
Notes: C1 is the basic cash cost per unit of production; AISC is the “all-in sustaining cost” that includes sustaining capex and other ongoing costs. Figures are unaudited.
Operational momentum at Uis: more tonnes through the plant
Uis remains the engine room. Ore processed rose 10% to 527,583 tonnes thanks to plant stability and an 8% uplift in processing rate to 143 tonnes per hour. Tin concentrate output increased 14% to 858 tonnes, lifting contained tin by 11% to 511 tonnes with recoveries steady at 71%.
Tantalum production grew 12% to 27.1 tonnes and delivered £0.3 million of revenue – a tidy 3% of group revenue – with low incremental cost, so most of it drops to gross profit. That helps margins and diversifies earnings.
Costs, margins and hedging: trending better, with one important caveat
Unit costs improved on volume leverage. C1 cash costs fell 6% to US$17,468/t, C2 to US$19,594/t, and AISC to US$24,808/t. That’s the right direction of travel. The average tin price achieved rose to US$33,154/t, and the company has a tin price hedge in place on 20 tonnes per month at US$34,400/t through to May 2026, smoothing cash flow.
The caveat is the Orion royalty, which stepped up to US$3,054/t (from US$1,611/t) due to the scaling mechanism tied to concentrate tonnes sold. Management expects the rate to decrease as production volumes grow further, but in the near term it’s a headwind to gross margin.
Gross profit decreased 27% to £1.9 million after a 25% rise in cost of sales, reflecting inflationary pressure in mining and processing during an expansion phase. On the positive side, administrative expenses were clipped by 26% to £3.7 million following a corporate restructure – helpful for operating leverage as output scales.
Balance sheet, cash and funding: progress, but liquidity is tight
Total assets edged up to £69.0 million year-on-year, largely from continued investment in the plant at Uis (new filter press and shaking tables). Trade and other receivables rose to £7.9 million, largely due to tin prepayments.
Cash was tight: the period opened with roughly £1.8 million and closed with £0.7 million (net of overdraft), after about £3.0 million of property, plant and equipment spend and £1.0 million of interest and lease payments. Borrowings totalled £20.7 million at period end.
Andrada strengthened equity in June via a £5.0 million raise, including a £4.5 million strategic investment from Talent10 Resources for an 8% stake, plus shares issued in lieu of interest to convertible loan note holders. That institutional support is a vote of confidence, but the company states plainly that additional funding will be required within the next 12 months. That introduces a “material uncertainty” around going concern until fresh funding is secured.
Safety and ESG: strong execution
Safety metrics improved meaningfully. There were no fatalities. The lost time injury frequency rate (LTIFR – a measure of injuries causing time off) fell to 0.00 from 1.74, and the total recordable injury frequency rate (TRIFR) reduced to 4.53 from 6.50. Management is leaning into audits, leadership engagement and training – a necessary foundation for a scaling operation.
Growth projects: Ore Sorter, lithium and new partnerships
- Uis Ore Sorter project – Reengineered and now a key 2026 deliverable. Management expects about a 60% uplift in tin and tantalum concentrate and lower unit costs once commissioned. Long lead items are on site; fabrication set for H1 2026 with commissioning in H2 2026. Notably, reengineering cut over 20% of the outstanding capital.
- Uis lithium expansion – A techno-economic assessment supports producing a high-purity lithium concentrate via a circuit integrated with the existing plant. The project is set to move into Definitive Feasibility Study during 2026. If executed, management believes it could transform Uis’s cash generation.
- Jig Plant – Constructed on time and budget in August 2025 to treat third-party high-grade ore and Uis ore. Commissioning has been hampered by material flow issues. A new court judgement has halted major mining activities on the Goantagab claims, delaying third-party ore supply under a profit-sharing deal. Andrada plans to feed the Jig Plant with Uis ore in the meantime.
- Exploration at Uis – Drilling around 13 proximal pegmatites within 3 km of the plant returned encouraging grades, including up to 1.13% tin and 1.76% lithium oxide. The strategy is to grow the resource base toward 200 million tonnes, underpinning future tin/tantalum expansion and lithium potential.
- Lithium Ridge with SQM – A 14,000 metre diamond drill programme commenced in August 2025 as part of an earn-in. The structure allows SQM to fund up to US$40 million in stages for up to 50% equity in the project, with Andrada as operator under oversight.
Reporting change: fewer quarterly cost numbers, more context
Andrada will stop publishing quarterly cost and pricing estimates, arguing the short cycles produce noise driven by grade, recovery, shipment timing and FX. Costs will still be disclosed at interim and year-end. Quarterly updates will focus on production and project execution. In my view, that reduces headline volatility but puts the onus on management to keep narrative transparency high between formal results.
What looks positive
- Production growth at Uis is consistent, with processing rates and utilisation up.
- Unit costs are falling while achieved tin prices are higher, and hedging supports cash flow.
- Admin cost reduction is feeding through to a smaller operating loss.
- Ore Sorter redesign cuts capex and targets a sizeable uplift in output in 2026.
- Tantalum adds low-cost revenue diversification.
What needs watching
- Gross profit fell as cost of sales rose – the path to stronger margins depends on hitting higher volumes and resolving commissioning challenges.
- Liquidity is thin and additional funding is required within 12 months – this is the key risk flag.
- The Orion royalty increased per tonne; benefits from lower rates rely on further scale.
- Third-party ore supply to the Jig Plant is delayed by a court judgement, limiting near-term upside from that facility.
Josh’s take: a credible ramp with clear catalysts – funding remains the swing factor
Operationally, this is a tidy half. More tonnes, better plant utilisation, lower unit costs and a smaller operating loss all point in the right direction. The 2026 project slate – notably the Ore Sorter and the lithium DFS – could be transformational if delivered to plan, especially with tantalum and potential lithium providing incremental margin.
The two items that matter most from here are funding and execution. Management has been straight that more capital is needed within a year. Secure that on reasonable terms, keep pushing volumes, and the cost curve should continue to bend down. Miss on either and the equity story gets harder. For now, the operational momentum at Uis gives them a platform to work from – and that’s exactly what you want to see at this stage.
