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Consensus community valuation
$0.175
Average Intrinsic Value
47.4%
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Active Member Straws
## Low capex with big revenue
Added 2 months ago

This link is to a Hot Copper post, a research summary by an Andromeda shareholder who is an engineer and has been analysing the company for two years.  He is in regular contact with the MD and in general, his analysis and numbers are quite good.

https://hotcopper.com.au/threads/adn-pre-dfs-target-of-0-26-to-0-35.5626079/?post_id=47366876#.X2EeuyUmLDs

 

This link is to the Webinar presentation delivered by James Marsh last Friday.  He speaks very quickly and has a Welsh accent, but he knew he had to deliver a lot of information in a short time-frame.  It is well worth listening a couple of times to understand what he is saying about the Hammerhead Kaolin project and its potential in the concrete industry.  I have spoken with building industry people and the improvement of the kaolin additive is significant and hence the cost of the additional input would be insignificant compared to the cost savings and strength benefits.  At $4000 per tonne, this would be a very lucrative market to supply from Hammerhead, which has 18m tonne resource and several decades worth of supply.

https://www.sharecafe.com.au/2020/09/14/andromeda-metals-hidden-gems-webinar-presentation/

 

 

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Added 4 months ago

Summary of Company activities for the June quarter:

Poochera Halloysite-Kaolin JV (right to earn up to 75% interest)

  • Results of the Pre-Feasibility Study (PFS) were released during the quarter which reinforced the potential for the Poochera Halloysite-Kaolin Project to be a long-term supplier of high-quality halloysite-kaolin product able to meet a growing global demand from ceramic industry manufacturers.
  • The PFS is based on an expanded Life of Mine (LOM) of 26 years and inclusion of onsite wet-processing, thereby delivering further significant improvement to the Project economics. Key metrics for the PFS are:
  • Pre-tax NPV8% of A$736M (after-tax NPV8% of A$511M);
  • Pre-tax IRR of 175% (after-tax IRR of 135%);
  • Project cashflow of A$1.97B pre-tax and A$1.39B after-tax;
  • All In Sustaining Cost (AISC) of A$354/tonne of refined premium halloysitekaolin product with an anticipated selling price of A$700/tonne;
  • Pre-production capital estimated at A$13M with a maximum cash requirement of A$28M prior to initial revenues being received;
  • Payback period of 15 months from commencement of mining;
  • On-site wet-processing plant fully funded by revenues received from DSO production, constructed in the Year 2 of operations at a cost of A$56M.
  • Maiden Carey’s Well Ore Reserve of 12.5Mt bright white kaolinized granite classified as Probable Reserves comprising 15% halloysite and 78% kaolinite in the minus 45 micron fraction determined.
  • Drilling confirms bright white kaolin over a 2 km strike between two highgrade halloysite zones at Condooringie with final assays awaited.
  • Project to be renamed Great White Kaolin Project from 1 August 2020.

Mount Hope Halloysite-Kaolin Project (100% ADN owned)

  • Drilling encountered large intersections of greater than 20 metres of white kaolin with the zone remaining open to the south.
  • Significant areas of Ultra-High Bright White kaolin with exceptionally low iron contaminant provide a potential additional high value market opportunity in specialist coatings and polymers.

Eyre Peninsula Gold Joint Venture

  • Planning undertaken by JV partner Cobra Resources for an extensive RC drilling program across a number of targets to commence in the next quarter.

Corporate

  • Joe Ranford moved to the executive role of Operations Director to manage the Project through the final feasibility and mining approvals phases.
  • Cash received during the quarter relating to the exercise of options totaled over $773K. The current BPay facility expires at 5.00pm 31 July 2020.

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Added 4 weeks ago

Natural Nanotech JV advances Halloysite uses 

Summary

  • Halloysite based nanocarbon (Fullerene) materials produced from Great White halloysite-kaolin and successfully activated with functional additives
  • Testing of these products is showing excellent results in a range of applications including carbon capture/ conversion, hydrogen storage, remediation, energy storage and antibacterial
  • Pilot plant nearing completion to produce semi-commercial quantities of extremely high value halloysite based products
  • Carbon capture products proven fit-for-use
  • Work on conversion of captured carbon into clean fuels in progress
  • Water purification products showing exceptional potential
  • New projects planned for halloysite use in medical, and agricultural applications
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Added 3 months ago

Appointment of Internationally Experienced Marketing Services Provider

Summary

  • Heads of Agreement signed with specialist commodity marketing service provider Conrad Partners to support ADN’s Asian marketing and services strategy.
  • Conrad Partners have a large, well-qualified team of sales professionals based in mainland China who will work with Andromeda personnel to convert Letters of Intent (LOI’s) signed by identified potential customers into binding offtake agreements.
  • Existing LOI offtake customers represent over 200,000tpa of fully refined halloysite-kaolin product.
  • Conrad Partners will also assist in sourcing and negotiating with toll refining facilities in China.
  • The services agreement will cover all mainland China logistics and customer service requirements.
  • Conrad Partners selected due to their extensive experience in securing binding contracts for the sale of Australian mineral commodities into China.
  • Commercial quantities of refined product from the Great White Deposit have now been produced in Japan with further testing to be conducted in China and Australia prior to final distribution to potential ceramic customers.

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Added 2 weeks ago

Positive Results from Concrete and Coatings Application Testing

Summary


Halloysite-Kaolin Testing for Concrete Applications

 

  • Testing of Great White Project halloysite-kaolin across a number of concrete application mix designs continues to deliver positive results.
  • Early results are consistent with those recorded for the Hammerhead deposit which could allow supply to the concrete market on mining commencing at Great White.
  • Clear strength gains were found in Self Consolidating Concrete.
  • Long term concrete slump properties were maintained with halloysite-kaolin addition.
  • Australian Concrete Standards Certification due in late November.
  • Halloysite-kaolin performed very well against the 32MPa concrete control displaying desirable properties in "slab on ground" applications.
  • Concrete strength results were typically about 1.5MPa higher at 28 days, even with higher water content in the mix designs.
  • Halloysite-kaolin addition in concrete gave a very significant reduction in bleed.
  • Investigations into the halloysite content vs. performance benefits are in progress.


High-Purity Kaolin Testing for Coating and Polymer Applications

 

  • Ultra-high purity kaolin (non-halloysite type) from Great White and Mount Hope has shown exceptional results for coating and polymer applications.
  • Results from both deposits are of the highest quality, with brightness properties superior to market leading products which are currently sold for A$1,000/t (i).
  • The Great White material was sourced from within and extensional to the existing mine design area and representative of the average purity.
  • Samples are now being tested as feed for High Purity Alumina production due to the incredibly low level of impurities.
  • Material from both deposits has been refined to commercial standard and can be used for customer approvals.

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Added 3 weeks ago

Andromeda Metals Limited (ASX Code: ADN, Andromeda, the Company) is pleased to announce that the Company has appointed Taylor Collison Limited as its corporate advisor to assist with a range of corporate initiatives as the Company advances the Great White Kaolin Project through completion of final feasibility studies, obtaining off-take agreements, implementation of project finance and construction of the Project.

The Company has elected to appoint Taylor Collison based on its significant M&A and ECM corporate advisory experience, its expertise in the natural resources space, its presence in South Australia, and close working history with the Company.

Managing Director James Marsh stated, “We are very pleased to be working with Taylor Collison during this next exciting phase of the Company’s evolution. Taylor Collison is a leading Australian financial services firm and, having its history firmly based in South Australia, is well-aligned to Andromeda’s South Australian focus.”

Chairman Rhod Grivas added, “We are delighted to have Taylor Collison supporting the Company and this appointment extends our collaboration with them at a significant point in Andromeda’s journey as we progress towards production.”

Taylor Collison is a leading non-bank financial services firm providing a suite of services across equity capital markets (for corporate, institutional and retail clients) and corporate transactions. It has extensive corporate advisory expertise across various sectors in the areas of mergers, acquisitions, asset and business sales, joint ventures and partnerships. It has relevant experience in the natural resources sector, having led capital raisings for companies such as Rox Resources, Mithril Resources, Chesser Resources and Egan Street Resources (where it also advised on the recent acquisition by Silver Lake Resources).

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Added 2 months ago

Drilling underway at Wudinna Gold Project

Summary

  •  Wudinna Gold Project joint venture partner Cobra Resources PLC has commenced a substantial RC drilling program to be conducted across a number of identified prospects within the Project.
  • A total of up 45 holes for 6,750 metres of drilling is targeted with the primary objective to define the orientation and extensions of mineralisation at various targeted areas prospective for gold.
  • Cobra’s stated aspirational aim is to build on the current Mineral Resource of 211,000 ounces towards an initial target of 1 million ounces of gold resource across the Project area.
  • Completion of this exploration fieldwork will result in Cobra earning a 50% equity interest in the Wudinna Gold Project.
  • ADN is encouraged by this significant exploration program being undertaken by its joint venture partner at Wudinna while the Company’s focus is directed towards completion of the Definitive Feasibility Study and Mining Lease submission for the Great White Kaolin Project which is making steady progress.

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Last edited 3 months ago

VIDEO INTERVIEW WITH MANAGING DIRECTOR

Andromeda Metals Limited (ASX: ADN, Andromeda, the Company) would like to advise of a video interview conducted by the Company’s Managing Director James Marsh which has been released across various media platforms.

A further update in a series of Coffee with Samso Rooster Talk interviews titled “The Art of Creating Kaolinite that Pays” has been released on 3 September 2020 with the link to the video as follows:

https://youtu.be/GUKEDFXbyoQ

The video link is available to access on the Company’s website.

A summary of the key areas discussed during the video interview is provided below.

New Project Name

It has been agreed to rename the Poochera Project as the Great White Kaolin Project and also individual deposits and prospects within the project location in order to assist in removing confusion with respect to the Poochera name when describing the Project which reaches beyond the Poochera district. A theme based on sharks and rays found in Australian waters was chosen that has more connection with the location being the Eyre Peninsula of South Australia.

Marketing

Andromeda has engaged specialist commodity service provider Conrad Partners to support the Company with the implementation of its Asian marketing strategy. A key component of this will be the conversion of the current Letters of Intent for offtakes of refined product signed by a number of previously identified Chinese ceramic manufacturers into binding supply contracts. Conrad personnel, most of whom are based in mainland China, will work closely with Andromeda staff to effect these binding contracts as a priority in addition to the locking in of contracts for the processing of DSO material with identified toll refiners in China and other potential Asian locations.

Approximately 10 tonne of commercially refined material sourced from the Project has been produced in Japan and is now available for distribution to identified potential customers for final factory scale trials. Three different product types have been produced;

  • PW90 (90% less than 2 microns);
  • PW70 (70% less than 2 microns) and;
  • PW50 (50% less than 2 microns) a newly considered product of lower purity but with potential of delivering good sales margins.

Samples are to be sent to various end users and distribution agents identified around the world besides China in order to ensure diversification of market opportunities as much as possible.

Manufacture of a large run of fine porcelain items sourced from Great White Kaolin Project material with the Andromeda logo displayed is to be produced and will be made available to potential customers for examination.

Geology

A maiden Probable Ore Reserve has been prepared for the Great White Deposit (previously Carey’s Well Deposit) of 12.5Mt of bright white kaolinised granite containing 52% material in the minus 45 micron fraction that supports the 26 year mine life at 500,000tpa which has been used in the PreFeasibility Study.

A maiden Mineral Resource for the Hammerhead Prospect (previously Condooringie Prospect) 5kms to the north of the Great White Deposit is nearing completion and will be announced shortly. Indications are that Hammerhead will be larger and of an average higher-purity halloysite-kaolin than Great White, allowing the Company to produce substantial amounts of differing ratios of hybrid halloysite-kaolin material to meet customer requirements.

Aircore drilling undertaken at the Company’s 100% owned Mount Hope Kaolin Project has resulted in the determination of an Inferred Mineral Resource under the JORC 2012 Code of 18Mt of bright white kaolinised granite yielding 7.5Mt of minus 45 micron quality kaolin product. Of significance, although halloysite-kaolin was encountered that is similar to that found at the Great White deposit, drilling has also identified a zone of rare ultra-high purity non-halloysite material containing some of the lowest iron contaminates found anywhere in the world, making it suitable for a new market opportunity in the area of coatings and polymers, which broadly sells at a higher premium price than for ceramic applications.

The discovery of ultra-high purity non-halloysite material at Mount Hope led Andromeda geologists to review areas outside of the current Great White resource which may display similar characteristics. As a result, a significant area of ultra-high purity kaolin not included in the original resource due to the area not containing halloysite, has been identified. Samples from this zone at Great White along with the Mount Hope non-halloysite material will now undergo full testing in the UK to assess suitability for this new market application.

A positive meeting has now been held with the native title landowners at Camel Lake with anticipation that access will be granted to allow Andromeda to undertake initial field activities later in the year.

Definitive Feasibility Study

Work is progressing on the preparation of the Definitive Feasibility Study with detailed evaluations of product types and plant design, along with port selection based upon the final product to be manufactured at site, to be made. Product from site to be shipped either in bulk or bags will impact upon the ultimate port selection to be made. Consideration also of whether to construct the wetprocessing plant, and hence produce a processed product immediately rather than wait 2 years and fund construction through DSO sales, is also being evaluated.

New Market Opportunities

The Company is currently evaluating a number of exciting new market opportunities which includes a high value application for both domestic and international markets. Andromeda hopes to be in a position to expand on these opportunities in coming months.

Positive studies are also continuing in the halloysite nanotechnology space lead by work conducted by the University of Newcastle’s Global Innovative Centre for Advance Nanomaterials, with research in the areas of carbon capture, hydrogen storage, water purification and battery enhancements jointly sponsored under a separate joint venture between Andromeda and Minotaur Exploration.

Timeline

A planned commencement of operations for February 2022 is currently targeted. This takes into account sufficient time for completion all studies and the obtaining of all government approvals and permits required to allow mining to commence. The recent appointment of Joe Ranford as Operations Director, who has first-hand experience in managing the mining application process in South Australia, will be of significant benefit to the Company.

The next key milestone is the completion of the Definitive Feasibility Study which is currently targeted for mid-December 2020. Submission of the mining lease application is subsequently targeted for February 2021.

Listed Options

The ADNOB listed options, which have an exercise price of $0.012, expire in just under 3 months on 30 November 2020. As the options are considerably ‘in the money’, a steady stream of options being exercised has occurred with approximately $2.5M received during the calendar year to date. If all options are exercised, another $5.9M would be received by the Company to add to the current cash balance of $3.4M.

In summary, the Board is of the view that Andromeda is well positioned to become a world leader in the supply of halloysite-kaolin and participant in halloysite nanotechnology development.

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Added 3 months ago

New Mineral Resource for the Mount Hope Kaolin Project

Summary

  • An updated Mineral Resource Estimate reported in accordance with the 2012 JORC Code and Guidelines has been completed for the 100% owned Mount Hope kaolin deposit in South Australia.
  • An Inferred Resource of 18.0Mt of Bright White kaolinised granite is estimated using an ISO Brightness R457 cut-off of 75 for minus 45 micron kaolin product, which represents an approximate 47% increase on the previous non-JORC resource.
  • The 18.0Mt of in-situ Bright White kaolinised granite yields 7.5 Mt of minus 45 micron quality kaolin product.
  • The resource contains two sub-domains consisting of Ultra-Bright highpurity kaolin (1.6Mt) and high halloysite-kaolin (0.6Mt).
  • The high-purity domain shows exceptionally low iron contaminant within the bright white kaolin with halloysite levels ideally suited to some high-value markets in specialist coatings and polymers, which opens up a new and potentially significant market opportunity for ADN.
  • The remainder of the Mt Hope deposit is very similar to the Great White halloysite-kaolin Resource near Poochera, and perfectly suited for the high-quality porcelain ceramics market.
  • Recent drilling undertaken in March 2020 has determined that the resource remains open to the south and southwest.
  • Resource modelling is in progress for the Hammerhead Prospect at the Great White Kaolin Project with results expected to be announced in the next few months. 
  • Steady progress is being made with the Definitive Feasibility Study and Mining Lease application process for the Great White Kaolin Project.

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Added 2 months ago

New Mineral Resource Estimate for Hammerhead Halloysite-Kaolin Deposit

Summary

  • The inaugural Mineral Resource Estimate reported in accordance with the 2012 JORC Code and Guidelines has been completed for the Hammerhead Kaolin Deposit in South Australia.
  • An Inferred Resource of 51.5Mt of Bright White kaolinised granite is estimated using an ISO Brightness R457 cut-off of 75 yielding 27.1Mt of minus 45-micron quality kaolin product.
  • The Resource contains a sub-domain consisting of high halloysite-kaolin totalling 4.7Mt.
  • The Hammerhead Deposit is very similar to the Great White Deposit and perfectly suited for the high-quality porcelain ceramics market.
  • Recent drilling undertaken in May 2020 has determined that the resource remains open to the east, south and northwest.
  • Concrete application testing of Hammerhead halloysite-kaolin is continuing to deliver strong positive results. A 100kg sample of Hammerhead product is being prepared for a full-scale underground mine shotcrete trial.
  • Concrete application testing is also to be undertaken on material representing a sizable high halloysite sub domain of the Great White Deposit.
  • Steady progress continues to be made with the Definitive Feasibility Study and Mining Lease application process for the Great White Kaolin Project.

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Added 2 months ago

REQUEST FOR TRADING HALT – ANDROMEDA METALS LIMITED (ASX : ADN)

In accordance with ASX Listing Rule 17.1, we request an immediate trading halt in the Company’s securities pending an announcement of an initial Mineral Resource for the Hammerhead Kaolin Prospect which is part of the Great White Kaolin Project. The Company requests that the trading halt end on the earlier of the commencement of normal trading on Wednesday 30 September 2020, or when the anticipated announcement referred to above is released to the market. The Company is not aware of any reason why the trading halt should not be granted, nor of any other information necessary to inform the market about the trading halt.

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Added 2 months ago

Hammerhead Drill Results and Potential Construction Product Application

  • Analyses of samples collected from aircore drilling undertaken at the Hammerhead Prospect has defined an extensive area of Bright White kaolin (>75 ISO Brightness) with a minimum thickness of 10 metres extending over an area of 2.4 kms by 0.5 kms.
  • XRD test results received to date have confirmed zones of high-grade (+20%) halloysite-kaolin within the Bright White domain.
  • A Mineral Eesource Estimate will be prepared for the Hammerhead Prospect on receipt of final XRD analyses.
  • Samples from the high grade halloysite zone at Hammerhead are giving excellent results in concrete application testing.
  • A bulk sample (two tonnes) has been collected from Hammerhead for future test work.
  • Samples of product from the Great White Deposit are also showing excellent test results for mine backfill applications.

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#Maiden Ore Reserve for Carey's
Last edited 5 months ago

Summary

* A maiden Ore Reserve Estimate of 12.5Mt of bright white kaolinised granite containing 52% of material in the minus 45 micron fraction has been determined for the Carey’s Well Deposit located within the Poochera Halloysite-Kaolin Project in South Australia.

* The Ore Reserve Estimate, which comprises 15% halloysite and 78% kaolinite in the minus 45 micron fraction, is classified in the Probable category.

* The Ore Reserve supports a 26 year mine life at a mining rate of 500,000 tonnes per annum as reported in the recently announced Pre-Feasibility Study.

* Focus is now heavily directed towards completion of the Definitive Feasibility Study and the Mining Lease application process with site mining activities targeted for early 2022.

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Last edited 4 months ago

New Major Market Opportunity for Andromeda with Mount Hope Project

Summary

* Results from the initial aircore drilling program conducted at ADN’s 100% owned Mount Hope Kaolin Project in South Australia have delivered significantly high bright white kaolin intersections (above 80 ISO Brightness) across the historic kaolin resource.

* The April 2020 drilling program, which comprised a total of 40 holes for 1,383 metres across the drill target area, has extended the deposit further to the south and remains open in that direction.

* A substantial portion of the deposit shows exceptionally low iron contaminant within the bright white kaolin with halloysite levels ideally suited to some high-value markets in specialist coatings and polymers, which opens up a new and potentially significant market opportunity for the Company.

* Mount Hope thus represents an excellent opportunity for market diversification and de-risking of the business in addition to adding value to the Company as a whole.

* Some areas of the Mount Hope deposit show high levels of halloysite (>20%) that is similar to the existing resource at ADN’s Carey’s Well deposit, part of the Poochera Joint Venture with Minotaur Exploration.

* The Carey’s Well resource is well-sized to supply the market requirements for high-value ceramic applications, especially when combined with potentially significant additional halloysite-kaolin material from the Condooringie and Tomney prospects at Poochera.

* The development of the Carey’s Well deposit remains the main focus for ADN with Mount Hope offering excellent potential for future growth opportunities for the Company.

* A new Mineral Resource Estimate compliant with the 2012 JORC Code for the Mount Hope deposit is currently being finalised and will be released shortly.

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#Bull Case
Added 2 months ago

Adn receiving a lot of volume. 

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