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AfriTin targets US$100mln revenues with five-year plan

Published: 16:54 06 Apr 2022 AEST

AfriTin Mining Ltd -
Uis Mine

AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) has laid out a five-year plan to increase tin production three-fold alongside the production of substantial quantities of lithium and tantalum.

Current production from its Uis mine in Namibia is 850 tonnes of tin concentrate a year (tpa).

AfriTin wants this to climb to 2,800tpa by 2027 when it will also be producing 60,000tpa of lithium concentrate and 45tpa of tantalum. To achieve that, exploration will be carried out across its acreage, including B1/C1, 15km from Uis, and Brandberg West, 107km away.

Anthony Viljoen, chief executive, said: "AfriTin has proven it is already part of a small and unique group of global tin producers.

"What enhances our ambitions and the achievable future strategy is the underexplored lithium potential combined with multiple historic open pit tin mines close to our Uis mine.

"We look forward to bringing these exciting deposits into production and leveraging the knowledge gained from successfully building a new mine at Uis."

Exploration at Uis will focus on building the resource up to 200Mt from 71.5Mt currently, with a feasibility study for an expansion of existing operations to 16,000 tpa of tin, and 48,000 tpa lithium already underway.

AfriTin added that its own financial models indicate that the planned expansion can increase revenues to more than US$100mln a year from approximately US$20mln currently.

Cash flow projects or NPV suggest in excess of US$500mln for the project and an IRR (rate of return) of 130% for the post-Phase 1 expansion, assuming a 70-year life-of-mine at a discount rate of 8.3%.

Uis is currently generating US$800,000 a month in operating cash flow; this money and appropriate project financing will fund the expansion, said the statment.

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