Andrada Mining (LSE:ATM) — Investor Presentation

0:01 Good morning, and welcome to the Afritan Mining Limited Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to select the following poll. And I'd now like to hand you over to Anthony Bouillon, CEO. Good morning, Chisar.

0:32 Morning, Alessandra, and thank you once again for hosting us on your platform. Today, we're gonna be presenting our five five year strategy. And what we'll do in the meantime is we will just focus on the presentation for technology's sake.

1:01 Welcome, welcome, everyone, and, welcome to Affyton's first seminar, first webinar for the for the year. It's a particularly satisfying time to present to you our five year strategy going forward. When we floated the company in 2017, we put together a very talented group of technical professionals and set out some very high objectives as an organization to achieve. Many of the objectives we set out were premised on building a robust platform to grow a mining company of global significance. We have developed a producing asset with free cash flows and a solid team capable of executing large scale construction and development projects.

1:47 The next five years will be the most exciting and value accretive stage in our journey where we are now able to dramatically scale up on our production platform to realize our finding objectives of becoming a tier one mining company. The founding principles of our organization and the principles upon which we measure ourselves in as an organization are as follows. Our focus on first principles geosciences is identification and targeting of scalable deposits with a succinct pathway to early production where we can deliver relatively quick but long term sustainable mining projects of global significance to the market. Although we have targeted a specific mineral element initially, the unique geological setting where we are based in Namibia will allow us to not only scale up our existing operation, but diversify our revenue streams and develop a technology metals portfolio to become a low cost metal producer, supplying minerals that drive the transition to a new, greener, energy efficient, and globally sustainable operation.

2:59 In order to sustainably achieve these principles, Afritan's experienced board of directors has developed the following strategic pillars that are not only becoming embedded in our corporate culture, but are the foundations of the corporate DNA. These will enable the organization to grow and achieve the ambitious strategy set out in this presentation. These pillars include expanding our resource inventory through first principles prospecting and exploration to sustainably and continue replenish our used resources while at the same time driving operational excellence within the team through optimization and producing at the lowest cost achievable, making use of the in house expertise for timely and efficient delivery of the stated objectives in in the project delivery while achieving our overarching foundation of relaying sound, achievable, and measurable commitments to the environment, the social license to operate, and above all, sound governance in which we are able to govern these principles.

4:08 The establishment of our footprints in Namibia was our first priority, gaining us a competitive advantage in a geological region that we believe will be one of the preeminent battery and technology provinces in the globe. Not only is Namibia a gracious host as an investor destination, but remains one of the best jurisdictions for investment in Africa. African's recent listing on the Namibian Stock Exchange was well received by all local financing institutions and the government. The company has established relationships at all levels of national and local government. The identification and acquisition of the various license areas set about identifying historical operating or brownfields assets around a cent central operating infrastructure at the current operation.

4:57 The company initially focused on the development of the operations of the globally significant flagship asset, the historical Wheatstone mine, which will remain the primary objective in terms of scaling up the organization. Concurrent with this will be the development of the very exciting opportunities that recently presented themselves on the historic Brundberg West mining license area as well as advancing on the recent discoveries of spodumene on the proximal pegmatites of the adjoining license in the b one c one pegmatites. The board and management believe that the current operations already contain significant value that will be realized and reported on within the next twelve months. However, the company is in fact at the formative stages of what is panning out to be a period of exponential growth for the company by delivering on the on the key deliverables around the strategic license area.

5:56 These include the phase one expansion and adding multiple revenue streams to the existing operations, furthering the work on the Brandberg West and the B 1 C 1 exploration activities, the Wiese phase two expansion, and and, ultimately, the investigation into additional assets both within Namibia and across Africa. The primary license where the current operations have commenced is mining license one three four and the historic tin mine waste tin mine that was once the largest open cast hard rock tin mine in the world. The first phase of the strategy involves scaling up operations to within 80% of the historical throughput of the of the mine. By developing and successfully implementing the operations, the company has developed deep operational and institutional capacity that will enable rapid development and expansion of the future phases of the project and other license areas.

6:55 We have achieved this while being cognizant of our funding ESG principles. The multiplier benefits of the initial operation has already had a significant positive impact on our immediate surrounding areas, the region, and the country as a whole. The fundamental opportunity, however, for the company resides around the geology and the unique setting of what we believe is one of the largest and most unique ore bodies of its kind in the world. The initial development focused around the shallow resource of the v one and v two ore body of the historical mine plan. This resource contributed 40% of the historical reserves that were prepared by SRK as part of an eight year mine life in 1985, a few years short of the historic mine's closure.

7:43 Confirmatory drilling has, however, shown that this ore body is in fact as robust as historically reported, and down dip drilling has shown the specific ore body to in fact be 70% bigger than historically, reported in that pit alone, making just the V 1, V 2 Pit one of the largest open cast deposits of tin and lithium globally. The company is busy with exploration drilling to bring the lithium and tantalum resource over the V 1, V 2 into a measured and indicated categories. A similar digitization exercise has now been completed as you can see on the proximal pit pits that will be followed by a confirmatory drilling program to bring the historic reserves into jaw compliance for bankability purposes.

8:33 This work has allowed the company to due to deduce a target resource inventory of at least 200,000,000 tons. To put this in context, the current mining operation that you see in the insert will only be 1,000,000 tons per annum once the current operations achieve their maximum throughput. This ore body is a behemoth. What started off as a proof of concept based upon the historical information has now turned into its own autonomous operation, producing free cash flows for the for the business. And once completed in the next twelve months, will have significant upside. This pathway to rapid and sustainable development has allowed the team to develop a brew a blueprint for how all future operations will be viewed and development of of the operations to provide the company with a unique platform to grow from.

9:27 Together with our funding partners, Standard Bank of South Africa, the largest bank in Africa, all future work on the operations will continually be developed in a self financing sustainable manner, but significantly provide the team with unique insights into the required areas of development for the upscaled phase two plant and effectively derisking the successful implementation of a scaled up version of the current operations. The work currently an underway and due to be implemented within the next twelve months involves the following. Circuit upgrades, to allow for efficient debottlenecking, implementation of the very exciting ore sorting technology that has the potential from what we are seeing in initial laboratory test work to increase the run of mine feed grade to the plant by two to four times.

10:24 A bulk test plant is already on-site and will be running test campaigns in the course of the next two quarters. Similarly, a lithium and tantalum pilot plant is being installed on-site to run test campaigns. Initial lab scale samples are being prepared for potential offtakers to conduct testing. These will be followed by bulk samples once the pilot test facility has been completed at Ouis. The bulk test work aims to derisk any variability in the ore body by running product on a live basis in the next three to six months. Following this, these modular plants will then be incorporated into the run of mine circuit and allow for enhanced revenues on the tin production as well as multiple revenue streams, from the byproducts for operations within the next nine to twelve months.

11:14 The company is progressing with multiple test lithium streams with international laboratories, including ANZIPAN and NAGROM to to determine product specifications and potential process flows for the lithium at Wiese. Long term offtakes agreements are already in place for the tin and the tantalum, and discussions have ramped up for the lithium, which is receiving a large amount of attention from globally prominent end users with a major focus on the battery market. The company is progressing with market research with mid Midevcom, Benchmark Minerals, and Wood Mackenzie to determine the potential product routes, required product specifications, price forecasting, and assumptions for both the petalite and spodumene product streams.

12:04 Work to date has noted that the petalite follows the same process flow as alpha spodumene in the production of lithium carbonate, with petalite containing about 70% of the contained lithium when compared to the contained lithium in spodumene. Owing to the slightly lower content, lithium content, more petalite concentrate is required to produce one ton of lithium carbonate when compared to spodumene. However, the two can be used interchangeably. The company does note, however, that the petalite achieves a premium when used as a feedstock in the glass and ceramics industry, what we call the technical grade market that that we will be targeting in the near future, whilst a slight discount is applied when utilized in the chemical market owing to this to the marginally reduced lithium content.

13:00 The company will be presenting its lithium strategy to the market following the completion of its market research and test work. This will detail the proposed product routes, required pro product specifications, price forecasting, and assumptions in the not too distant future. This body of knowledge will also form the basis for the concurrent completion of the phase two feasibility studies. The phase two feasibility studies aim to expand the operational mining footprint and plant throughput to at least 10 times the current operation. Initial work on this feasibility study will be released in q two this year and will allow investors to to gain the same level of excitement as the internal team as they discover the sheer magnitude of the ore body that we are dealing with.

13:53 Following our ongoing regional exploration program currently being undertaken, the company recently announced that not only does the tin mineralization continue into our adjacent mining license area, which is within haulage distance from the existing waste processing facility, but that the lithium mineral spodumene was identified for the first time within the b one c one pegmatites. This presents an additional exciting potential lithium source for the company. The next stages of exploration will focus on bringing the confidence levels of these outcropping pegmatites to the fore.

14:36 Whilst whilst the the the camp whilst the company has not spoken extensively on the proximal license areas, the historic Brandberg West mining lice mining license has the potential to be a significant deposit and operation in its own right. The project was historically mined by Goldfields as a polymetallic tin and tungsten deposit. The extensive vein hosted mineralization extends at a minimum of three kilometers from the historic pit, with the company investigating potential extensions to this. The ability to rapidly develop this deposit along the lines of what we've done at the current operations at Wies that will allow the company to continually expand its footprint and remain at the forefront of developing exciting mineral deposits to feed the new technology revolution.

15:32 AFRICAN MINING prioritizes the health, safety, and well-being of its employees and contractors. Health and safety protocols across the operations are constantly being reviewed and approved upon. An integrated health and safety system is implemented across the company to ensure proactive monitoring, management, and mitigation of all potential risks. The company remains committed to sound corporate governance. As the Effreeton Group expands, we strive to become a trusted partner within the local community with a focus on partnering with our employees, stakeholders, and investors. Compliance with the Namibian and UK best and global best practice operating and reporting regulations of the highest priority.

16:19 The responsible stewardship of the environment within which we operate remains a top priority for the company. The company is busy with the with the updating of the current ESIA and environmental management plan by independent environmental consultants. Afritan Mining aims to foster positive relationships with its stakeholders and host communities to maintain its social license to operate. The company will be presenting its ESG strategy to the market shortly. Given the remarkable amount of work ahead of the team this year, there will be a concurrent continual updating of the market on all aspects of our development work. With a steady flow of news that will be fed into the market once the various work streams produce the the relevant results. These include African's ESG strategy, which will be presented to the markets, lithium test work results, all sorting test work results, the form formulation of the the lithium development and marketing strategy, exploration, drilling from the lithium and tantalum on the v one, v two ore body, drilling on the proximal pegmatites, and the phase two feasibility studies, as well as additional work on the on the proximal license areas.

17:45 Thank you everybody for the for listening to the presentation. I'll hand back to Alessandro now, and and we will open the floor up for questioning. Anthony, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated in the top right hand corner of your screen. But just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with copy of the slides and the published q and a can be accessed via your investor dashboard. Anthony, as you can see, we received a number of questions throughout today's presentation, and thank you to all the investors for submitting those. Anthony, could I just ask you to read out those questions and give responses where it's appropriate to do so? And then I'll pick up from you at the end. Alright. Thanks, Alessandro.

18:32 So Peter l, West African lithium explorer Atlantic Lithium has been receiving unsolicited offers recently. Is this the same is is the same true for African? I I'm very pleased to say that African is a lot further advanced that in terms of its lithium production than most other lithium assets on the continent, and I'm pretty sure that we've already raised the interest of various parties globally. Peter l, once again, will the desalinated water supply nearby be sufficient to meet requirements for all the planned expansion phases?

19:17 This topic has received quite a lot of questioning. We we are in close proximity to one of the biggest desalination plants in in Southern Africa. It's it's got a capacity of twenty twenty million cubes of of output a year. We are we are in advanced discussions and have completed a prefeasibility study on on sourcing that water for the for the long term phase two scale up of our plants. Phase one, however, has a reliable and consistent source of underground water that will allow for for the expansion of of the current operations. Do you have do you have sorry. David s. Do you have any firm time scales for the development of the potential lithium and tantalum resource.

20:15 So so the the the upgrade of the inferred historic resource to an indicated and inferred resource will happen in q three of this year. The the work is progressing according to plan, and the drill rigs are are turning as as we speak. And we're we're we're very positive about delivering those those results to the market in a timely manner.

20:45 John h, Tim, is it envisaged that, in particular, the ore sorting will not only result in a production uplift, but also a reduction in unit costs? Any indication of possible scale? So, yes, John, in indeed, the the ore sorting from what we are seeing at the moment indicates that the feed grade will increase by two to four times. This will result in an increase in the run of mine and a significant reduction in the unit costs. The by by providing a higher feed grade into the into the plant at an earlier stage allows a lot more efficient use of the concentrating part of the circuit. So at the all of those efficiencies give you the the added advantage of reducing unit costs.

21:42 What is your pathway to to lithium production? So as as stated in the in the presentation, the pilot facility is is currently being installed at site. We will run a test campaign to test the variability of the ore. This this is test work after all, so we can't give a definitive timeline, but we aim to complete it within the next three to six months. Following that, we will have a a much clearer idea of what the modular addition to the plant will look like. So we could be in production of lithium in the next nine to twelve months providing lithium concentrate to the global markets.

22:30 Alright. Alessandro, thank you very much. I think we are done with done with questions. I see. Thank you for that. I think you you addressed those questions you can from investors. And, of course, the company rule view all questions submitted today, and we'll publish those responses on the investment company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, could I just ask you for a few closing comments? I'm just bringing your camera up now. Thank everybody for joining us today. We are a very ambitious, a growing company, and we look forward to welcoming new investors and existing investors to come and and and enjoy what is gonna be a very exciting ride for the company going forward.

23:18 Well done, everybody. Anthony, thank you for updating investors today. Can I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few minutes to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Afritan Mining Limited, we'd like to thank you for attending today's presentation, and good morning to you all.