Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) is a buying opportunity after today’s trading update, according to analysts at broker Berenberg.
Results were a mixed bag, said the broker, with tin production of 232t below the broker’s expectation of 285t as ore processed and grades undershot, but recoveries improved.
Management added that ore processed during the period was impacted by increased maintenance on the crushing section of the plant, while feed grade was lower due to the processing of blended ore.
Berenberg added it was a challenging quarter for Andrada, but the effort to improve plant efficiency should result in a better performance in the current three months.
The broker has a target price of 11p, adding that management remains focused on reducing its operational costs while strengthening the economic fundamentals of its tin operations, but this is reliant on operational delivery.
“We are constructive on the Andrada story and expect a buying opportunity if the shares experience softness today. The stock is trading on 0.23 times NAV and we maintain our buy rating."
Shares today were down 0.24p at 2.18p.