Africa News Bulletin

Namibia: Uis Tin Mine Earns Afritin N$278,7m in 2022

AFRITIN Limited, which owns Uis Tin Mine, made £13,6 million (N$278,7 million) in annual revenue from selling 760 tonnes of tin concentrate from the Erongo mine this year.

According to the Afritin 2022 annual report compiled by the chief financial officer, Hiten Ooka, the price of tin, which averaged US$38 680 per tonne, led to the massive profits.

Last year, Afritin made £5 million pounds after selling 473 tonnes of tin concentrate to its sole buyer Thailand Smelting and Refining Co (Thaisarco), the report says. The average price of tin then was US$22 150 (N$453 853) per tonne.

Afritin carried out 29 shipments this year compared to 19 last year.

Thaisarco, established in 1963, smelts and refines tin ore to manufacture tin alloy and other products.

Afritin extended the offtaker agreement for tin with Thaisarco from February 2021 until 30 November 2023.

The company, which now wants to include lithium and tantalum in the next expansion phase, also signed an offtaker agreement with Metal and Mineral Trading Africa (AfriMet) for future tantalum concentrate produced at the Uis mine.

Administrative expenses across the group for this year increased to £3,67 million (N$75,1 million), compared to £2,54 million (N$52 million) last year. The increase is a result of increased staff headcount given the growth phase of the business, as well as increased support services costs onsite and at the corporate head office due to improved operations.

The increase in finance cost for this year was £0,31 million (N$6,4 million) due to interest on the group’s lending facilities that are no longer being capitalised to the mining asset post the achievement of commercial production at Uis in November 2020. Last year, the finance cost was £0,18 million (N$3,7 million).

Afritin’s loss for the year totalled £0,474 million (N$3,5 million), down from £5,79 million (N$118,7 million) recorded last year.

The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) showed significant improvement, increasing from negative £4,713 million (N$96 million) last year to positive £2,589 million (N$53 million) this year.

On 28 February this year, the group had £7,36 million (N$150,9 million) cash in the bank, up from £1,351 million (N$27,6 million) last year.

The inventory balance increased to £1,452 million (N$29 751 480) compared to last year’s £0,997 million (N$20,4 million) due to increased tin concentrate production.

Trade receivables increased from £1,18 million (N$24 million) last year to £3,95 million (N$80,9 million) at year-end due to the higher production rates and the higher tin prices achieved in the financial year.

The balance incorporates a fair value adjustment passed to reprice the shipments in transit at year-end under the International Financial Reporting Standards requirements.

Trade and other payables increased to £2,97 million from £1,484 million (N$30,4 million) due to additional operating costs incurred due to improved operations.


Borrowings increased due to a £4,5 million (N$92,2 million) term loan obtained from Standard Bank to construct the Phase 1 Stage II expansion.

The loan note facility and the Nedbank working capital facility were fully settled during the year. Equity increased due to a £13 million (N$266,3 million) raise completed in May 2021. The convertible loan note classified as equity was also fully paid in May 2021.

The loan term of five years is considered senior secured debt at an interest rate of three months using the Johannesburg Interbank Average Rate (Jibar) plus 4,5%.

In addition to the term loan, Standard Bank took over the existing short-term banking facilities (working capital facilities) with Nedbank Namibia, totalling N$43 million.

These facilities will incur an interest based on the Namibian prime lending rate (currently 7,5%) minus 1%.

Furthermore, Standard Bank also provided AfriTin Mining (Namibia) with a N$5 million guarantee to NamPower concerning a deposit for the supply of electricity.

Notwithstanding the above, a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern and, therefore, the group might fail to realise its assets or settle its liabilities in the ordinary course of business.

As a result of their review, and despite the uncertainty, the directors have confidence in the group’s forecasts and expect it to continue operating for the going concern assessment period. Therefore, they used the going concern basis in preparing these consolidated financial statements.


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