Andrada Mining (ATM) AI Stock Analysis

• Market Cap: $57.04M
• Dividend Yield: N/A
• Average Volume (3M): 4.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 32.49%
• EPS Growth: -11.11%
• Country: UK
• Employees: 283
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,870,327,100
• 10 Day Avg. Volume: 2,955,835
• 30 Day Avg. Volume: 4,199,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 23.93
• Enterprise Value/Ebitda: -40.76
• 1Y Price Target: $9.65
• Price Target Upside: 216.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: 4.00p ▲(31.15% Upside)

Andrada Mining's overall stock score is primarily influenced by its financial performance and technical analysis. The company shows revenue growth but faces significant profitability and cash flow challenges, which weigh heavily on its score. The technical analysis indicates strong momentum, but overbought conditions suggest caution. Valuation concerns due to negative earnings further impact the score.

Positive Factors

Negative Factors

Andrada Mining Business Overview & Revenue Model

Company Description

AfriTin Mining Limited, together with its subsidiaries, engages in the exploration and development of projects in Namibia and South Africa. Its flagship asset is the Uis brownfield tin mine that consists of three project areas located in the Erongo region, Namibia. The company was incorporated in 2017 and is based in Saint Peter Port, Guernsey.

How the Company Makes Money

Andrada Mining generates revenue primarily through the extraction and sale of lithium and tin products. The company operates mining projects that produce high-quality ore, which is then processed and sold to various markets, including battery manufacturers and electronics producers. Key revenue streams include direct sales of lithium concentrate and tin ingots. Additionally, Andrada Mining may engage in strategic partnerships with other mining companies or technology firms to enhance its operational efficiency and market reach, contributing to its overall earnings. The increasing demand for lithium for electric vehicles and energy storage solutions also positions the company favorably in a growing market, further supporting its revenue generation.

Andrada Mining Financial Statement Overview

Summary

Andrada Mining is experiencing growth in revenue but faces significant profitability and cash flow challenges. The balance sheet shows moderate leverage, but the negative return on equity and cash flow issues highlight the need for strategic improvements. The company must focus on enhancing operational efficiency and cash flow management to achieve financial stability.

Income Statement

Andrada Mining has shown revenue growth over the years, with a notable increase of 19.41% in the latest year. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has improved but remains low, indicating challenges in cost management.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting rising leverage, but it remains under control. Return on equity is negative, reflecting ongoing losses. The equity ratio indicates a reasonable level of equity financing, but the negative ROE is a concern for investors.

Cash Flow

Andrada Mining's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow to net income ratio is high, indicating that cash flow issues are more severe than income statement losses suggest. The company needs to improve its cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.81M	23.81M	17.97M	9.83M	13.62M	4.99M
Gross Profit	2.24M	2.96M	1.72M	-681.94K	4.31M	-2.59K
EBITDA	-1.31M	-1.25M	-4.35M	-5.91M	2.56M	-4.76M
Net Income	-9.77M	-9.77M	-8.44M	-7.75M	-815.64K	-5.69M
Balance Sheet
Total Assets	69.57M	69.57M	66.20M	47.47M	37.07M	22.41M
Cash, Cash Equivalents and Short-Term Investments	2.70M	2.70M	14.51M	8.21M	7.37M	1.35M
Total Debt	22.21M	22.21M	14.66M	7.18M	5.48M	4.26M
Total Liabilities	45.86M	45.86M	34.14M	11.80M	9.61M	5.92M
Stockholders Equity	23.71M	23.71M	32.61M	35.82M	27.28M	16.64M
Cash Flow
Free Cash Flow	-16.40M	-18.92M	-18.87M	-18.19M	-5.42M	-4.46M
Operating Cash Flow	-4.89M	-4.00M	-3.74M	-4.93M	569.06K	-1.50M
Investing Cash Flow	-13.29M	-12.86M	-14.92M	-13.26M	-5.99M	-2.96M
Financing Cash Flow	5.56M	4.25M	25.22M	19.04M	11.46M	5.16M

Andrada Mining Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ATM, the sentiment is Neutral. The current price of 3.05 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.10, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ATM.

Andrada Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATM	54 Neutral	$57.04M	―	-35.03%	―	32.49%	-11.11%
KOD	48 Neutral	62.87M	2.21	0.00%	―	0.00%	0.00%
ALL	47 Neutral	67.16M	-19.46	0.00%	―	0.00%	54.72%
FAR	42 Neutral	40.31M	-5.20	3479.34%	―	-19.54%	-70.79%
ZNWD	41 Neutral	24.95M	-9.39	0.00%	―	0.00%	9.26%
HE1	37 Underperform	23.85M	―	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Andrada Mining Corporate Events

Andrada Mining Reports Growth in Tin Production and Strategic Expansion Plans

Andrada Mining Limited reported a 5.4% increase in annual ore processing and a 2.2% rise in tin concentrate production for FY2025, reflecting steady growth in its operations. The company secured USD2.5 million funding for a new jig plant to expand tin production and received approval for a lithium project partnership, positioning itself for future growth in critical minerals. The operational improvements, including enhanced plant utilization and increased shipments, underscore Andrada’s commitment to sustainable growth. The company’s strategic initiatives, such as the lithium project and diversified sales approach for tantalum, aim to strengthen its market position and optimize profitability.

Andrada Mining Executives Sell Shares to Meet Tax Obligations

Andrada Mining Limited announced that its Chief Strategy Officer, Frans Van Daalen, and Chief Operational Officer, Chris Smith, sold a significant number of shares to meet taxation obligations. Van Daalen sold 7,382,811 shares, while Smith sold 655,673 shares, both at a price of 1.96 pence. This move is part of routine financial management and is not expected to impact the company’s operations or market positioning significantly.

Andrada Mining Secures Approval for Transformative Lithium Partnership

Andrada Mining Limited has received approval from the Namibian Competition Commission for its earn-in agreement with Sociedad Química y Minera de Chile SA (SQM), marking a significant milestone in its lithium market strategy. This partnership, involving a potential USD40 million investment from SQM, is expected to accelerate the development of the Lithium Ridge project in Namibia, fostering socio-economic growth in the region and enhancing Andrada’s position as a key player in the critical raw materials sector.

Andrada Mining Enhances Employee Incentive Scheme with Share Options

Andrada Mining Limited has updated its employee incentive scheme, offering employees the choice between cash bonuses and shares, and has issued a significant number of ordinary shares. This move reflects the company’s strategic focus on cash preservation while aligning employee interests with company performance. The issuance of shares is part of a broader incentive plan, including long-term and employee share schemes, designed to retain key talent and ensure alignment with shareholder value creation.

Andrada Mining Announces Adjustments in Voting Rights

Andrada Mining Limited has announced a change in its voting rights positions, with FIL Limited reducing its stake to below 5% from a previous holding of 5.14%. This adjustment in voting rights could potentially impact the company’s shareholder dynamics and market perception, although the immediate implications for stakeholders remain unspecified.

Andrada Mining Secures $2.5M for New Tin Processing Plant in Namibia

Andrada Mining Limited announced securing a USD2.5 million funding facility to construct a second tin processing plant at its Uis mine in Namibia. This strategic move is expected to significantly boost tin production capacity and enhance cash flow without disrupting current operations. The new plant will allow modular expansion into nearby pegmatites and support increased production from higher-grade ore sources in the Erongo region. The initiative is part of Andrada’s broader strategy to strengthen its position in the global tin supply chain while advancing potential revenue from tantalum and lithium. The funding underscores shareholder confidence in Andrada’s growth strategy and commitment to scalable, sustainable production.

Andrada Mining Boosts Lithium Resources at Uis Tin Mine

Andrada Mining Limited has updated its Mineral Resource Estimate (MRE) for the V1V2 pegmatite at the Uis tin mine, reflecting an increase in the average lithium grade to 0.79% Li2O and a rise in contained lithium oxide from 587,000 tonnes to 610,000 tonnes. This update, which takes into account the final results from the 2022 drilling program, enhances the project’s economics by allowing the company to better quantify potential lithium concentrate credits and optimize overall project profitability. The updated MRE, informed by extensive historical and recent drilling data, underscores the significant lithium potential at the Uis mine and supports Andrada’s aim to be a leading African producer in its field.