Latest news with #AndromedaMetals
Yahoo
06-06-2025
- Business
- Yahoo
Andromeda secures $48.7m funding for Great White project in South Australia
Merricks Capital has granted credit approval for a A$75m ($48.7m) debt facility to support the development of Andromeda Metals' Great White project in South Australia. The debt facility includes principal, capitalised interest, fees, cash reserving requirements and a cost overrun tranche. The tenor of the facility spans 78 months, with a 12-month grace period post-development completion before scheduled amortisation begins, culminating in a 50% bullet repayment at maturity. The Great White project boasts Tier 1 asset status in South Australia, with all key approvals for construction commencement in place. With a 28-year mine life, the project is expected to produce 330,000 tonnes per annum (tpa) of refined kaolin products. It has secured 100% offtake coverage for Stage 1A+ and completed a bankable feasibility study showing strong project economics. The project features various high-value deposits containing a naturally occurring blend of halloysite tubes and kaolinite plates. It is located within the District Council of Streaky Bay, near the community of Poochera on the Eyre Peninsula in South Australia. The credit approval follows Merricks Capital's extensive due diligence on the project's environmental, financial, legal, market, social and technical aspects. Andromeda Metals and Merricks Capital are now finalising the binding financing documentation, leading to execution and first drawdown. The completion of the financial close is contingent upon customary conditions precedent including securing the balance of funding necessary for a final investment decision for the project's Stage 1A+ development. The terms of the facility entail a comprehensive senior security package over the project's assets and rights, with the facility being drawn down in stages. Interest is payable on the amounts drawn, with an undrawn line fee on undrawn funds during the availability period. After the 12-month grace period, a fixed repayment schedule is set, with a 50% bullet payment at maturity. Merricks Capital will also be issued 400,000,000 equity warrants, subject to financial close and shareholder approvals, with an exercise price at a 10% premium to the price paid for any shares issued as part of the development funding. Andromeda Metals acting CEO Sarah Clarke said: 'Receiving confirmation from Merricks Capital that the proposed facility is credit approved, following extensive due diligence, represents a significant milestone in the financing of Stage 1A+ of the Great White Project. This outcome is a strong endorsement of the project's quality and a testament to the team's dedication, expertise and commitment to delivering an investment ready project. 'With this momentum, we continue to pursue the balance of funding opportunities to support a final investment decision, with due diligence continuing with a select number of capital providers.' In addition to the Great White project, Andromeda Metals acquired a 51% interest in the Eyre Kaolin joint venture in July 2024. "Andromeda secures $48.7m funding for Great White project in South Australia" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Andromeda Metals Limited (ASX:ADN) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Andromeda Metals Limited's () future prospects. Andromeda Metals Limited operates as a mineral exploration company in Australia. With the latest financial year loss of AU$7.3m and a trailing-twelve-month loss of AU$5.4m, the AU$38m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Andromeda Metals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. According to some industry analysts covering Andromeda Metals, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$34m in 2027. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 104%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. Given this is a high-level overview, we won't go into details of Andromeda Metals' upcoming projects, but, bear in mind that by and large a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments. See our latest analysis for Andromeda Metals Before we wrap up, there's one aspect worth mentioning. Andromeda Metals currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company. This article is not intended to be a comprehensive analysis on Andromeda Metals, so if you are interested in understanding the company at a deeper level, take a look at Andromeda Metals' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at: Historical Track Record: What has Andromeda Metals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Andromeda Metals' board and the CEO's background. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Andromeda Metals Limited (ASX:ADN) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Andromeda Metals Limited's () future prospects. Andromeda Metals Limited operates as a mineral exploration company in Australia. With the latest financial year loss of AU$7.3m and a trailing-twelve-month loss of AU$5.4m, the AU$38m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Andromeda Metals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. According to some industry analysts covering Andromeda Metals, breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$34m in 2027. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 104%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. Given this is a high-level overview, we won't go into details of Andromeda Metals' upcoming projects, but, bear in mind that by and large a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments. See our latest analysis for Andromeda Metals Before we wrap up, there's one aspect worth mentioning. Andromeda Metals currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company. This article is not intended to be a comprehensive analysis on Andromeda Metals, so if you are interested in understanding the company at a deeper level, take a look at Andromeda Metals' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at: Historical Track Record: What has Andromeda Metals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Andromeda Metals' board and the CEO's background. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
13-05-2025
- Business
- News.com.au
Why Andromeda is all fired up about its Great White kaolin project
Once overlooked, kaolin is now attracting serious market interest Andromeda's near-production Great White project is well positioned to address anticipated supply shortfalls once operational. We caught up with Miguel Galindo, an independent non-excutive director at Andromeda, to get his market outlook With demand climbing across global manufacturing hubs for luxury surfaces like sintered stone, ceramics and premium tableware, kaolin – a soft, naturally occurring industrial mineral – is quietly becoming a highly sought after commodity. Global kaolin production in 2023 was around 40–45 million tonnes, but only a small portion, under 5%, qualifies for use in high-performance ceramic applications. While demand for lower-grade kaolin remains stable, the momentum is in high-purity, high-brightness kaolin in key markets like Asia and Europe where advanced ceramics and engineered materials are on the rise thanks to growing consumer trends towards large-format tiles and countertops. Yet, declining reserves and rising geopolitical tensions are limiting the availability of high-quality supply, driving up prices and prompting manufacturers to become more selective in sourcing. Australia isn't typically considered a leading player in the kaolin market but with Andromeda Metals' (ASX:ADN) near-production Great White deposit, that could soon change. The company's project is backed by 15.1Mt in high-grade ore reserves and has customers lined up with 100% of the planned capacity for Stage1A+ by four binding off-take agreements. Lab work using kaolin from the project has also demonstrated the technical feasibility of producing HPA, validating the company's flow sheet design. More recently, investors demonstrated their confidence in Great White by backing a $5m share placement to help fund early works, advance plant design and engineering along with technical, financial and legal activities to support the funding process at the project. Stockhead sat down with Andromeda's independent non-executive director Miguel Galindo to get his take on the Great White project, the wider kaolin market and Andromeda's potential to reposition Australia on the global stage. What makes Andromeda's Great White project unique in terms of its characteristics when compared to others around the world? 'The Great White Project is one of the few kaolin deposits globally capable of producing ultra-high purity kaolin with extremely low levels of iron and titanium – key traits for top-tier ceramic applications. 'Its outstanding whiteness and firing consistency make it ideally suited for premium porcelain tiles, ceramic wall tiles, sintered stone and fine tableware. 'Importantly, the deposit contains halloysite, a rare tubular form of kaolin, that adds distinct value in the high-end tableware segment by enhancing the manufacturing process and final finish of products.' The company is currently working towards final approvals and FID for Stage 1A+; what is your expected construction and production timeline? 'The Great White Project is development-ready, with all key approvals received to commence construction. 'To support a Final Investment Decision being made, a project funding process is currently underway. In April, Andromeda entered exclusive negotiations with Merricks Capital for a debt-financing facility of up to $75 million. 'Subject to a positive Final Investment Decision, we expect to commence construction in the second half of this year, with a construction period of 12 months until commissioning of the first stage producing 55,000 tonnes of annual production, and a further three months for commissioning for an additional 45,000 tonnes. 'This positions us to initiate production and first deliveries by mid-to-late next year. Our development approach through Stage 1A+ is modular and market-driven, allowing flexibility in scaling production to align with market demand.' Andromeda has offtake agreements lined up with Traxys, IberoClays, Plantan Yamada and Foashan Goaming – but what will the company's kaolin primarily be used for? 'Our kaolin is targeted at high-performance ceramic applications, including porcelain and ceramic wall tiles, sintered stone and tableware. 'These markets require very high brightness, whiteness, and consistency, and our product delivers precisely that – the halloysite component is particularly prized in fine tableware manufacturing due to its contribution to improved forming during manufacture and the final finish of the product. 'Our goal is to serve ceramic producers who demand the highest standards – many of whom are based in or influenced by Europe. 'For example, IberoClays is based in Spain and formulates mixtures for companies that create high-end ceramics tiles and countertops. While Plantan Yamada is a Japanese manufacturer and exporter of high-quality porcelain tableware products.' Who are the major global producers of kaolin (by country) and where does Europe factor into it? 'Leading producers include the United States, Brazil, China, the UK and Ukraine. 'Each country serves different markets and offers varying grades – the US is dominant in production of kaolin used in industrial processes and for making paper, while kaolin from Brazil and China is used to serve ceramics manufacturers. Ukraine has historically been a significant supplier of high-grade ceramic kaolin to Europe. 'Europe, particularly Spain and Italy, plays a central role not only as a consumer of high-quality kaolin, but also as a global trendsetter in the ceramics industry. 'These countries are home to some of the most advanced ceramic manufacturers and equipment producers, whose standards and innovations influence product design and production technologies worldwide. 'Securing a presence in the European tile market is therefore strategic – not just for sales, but for visibility, credibility and long-term growth in the premium ceramics sector.' Are there supply gaps in the market given a large part of Ukraine's resources has fallen under Russian occupation? 'Yes – Ukraine has long been a critical supplier of kaolin for European ceramics. 'The ongoing conflict has compromised both the physical supply and logistical routes, resulting in almost all of its production being removed from the market. 'This is creating supply gaps that have forced manufacturers to seek new, reliable alternatives – particularly those outside the conflict zone and with similar quality specifications. How can Andromeda help plug those supply gaps? 'Andromeda offers a stable, transparent, and ESG-compliant alternative source of high-grade kaolin. 'Located in South Australia, the Great White Project provides a long-term, scalable supply that meets the purity and consistency standards sought by European and Asian ceramic producers. 'Our existing partnerships and distribution agreements are already aligning us with the supply needs of ceramic leaders looking to de-risk their sourcing strategies.'
News.com.au
01-05-2025
- Business
- News.com.au
Resources Top 5: Andromeda a star on ultra-high purity HPA breakthrough
A testwork breakthrough by Andromeda Metals has resulted in the production of 4N HPA RareX is extending a search for critical mineral gallium at the Khaleesi rare earth project Taruga Minerals has exercised an option to acquire the Thowagee tenement in WA Your standout small cap resources stocks for Thursday, May 1, 2025 Andromeda Metals (ASX:ADN) A star performer on the ASX has been Andromeda Metals after pulling off a testwork breakthrough by producing ultra-high purity 4N high purity alumina (HPA) of 99.9985% using its own low-cost process and kaolin from the Great White Project in South Australia. ADN hit a new 12-month high of 2.8c, double the previous closing price on volume of more than 265m. The daily high for the $48m company was four times the closing price of 0.7c on April 10. Analysis of the produced HPA confirmed it has a purity of 99.9985%, well above the 99.99% purity required to be considered 4N HPA for use in lithium-ion batteries as a battery separator as well as the production of synthetic sapphire glass and LEDs. Results from the laboratory-scale testwork have been confirmed by top labs in the US and CSIRO and have validated the company's novel process flow sheet developed over seven years of investigation, research and metallurgical testing. What sets them apart is the process – no high-pressure acid, no extreme heat and no expensive aluminium metal. What's more, it's cleaner, cheaper and slashes carbon emissions by more than two-thirds, according to ADN. The ability to produce 4N HPA from kaolin is expected to provide significant cost advantages over the current dominant method of producing the critical mineral through synthesizing aluminium alkoxide from high-cost aluminium metal. The cost advantage also comes as demand for HPA is expected to outstrip global supply by 45% by 2028. 'Whilst Andromeda's primary focus remains the development of the Great White Project, the production of HPA is a high-value and complementary opportunity,' acting chief executive officer Sarah Clarke said. 'This latest test work validates our novel flowsheet, showing our Great White CRM product from the Great White Project can be used to produce HPA at an impressive 99.9985% purity.' She said this demonstrated the potential to expand the company's product portfolio in the future to include a value-added critical mineral while underpinning its confidence in progressing HPA production to the next stage of development. 'The premise of producing HPA – a high-value, in-demand product – at lower cost and reduced carbon intensity compared to established processes should be highly attractive to any manufacturers using HPA in their products,' Clarke added. The Great White Project is backed by 15.1Mt in high-grade ore reserves, enough to fuel a 28-year mine life. A 2023 bankable feasibility study estimated capex at $194m for a three-stage development that could supply up to 330,000 wet metric tonnes of product per annum, generating an NPV and IRR of $763m and 43% respectively. Andromeda Metals (ASX:ADN) is now heading into a scoping study and will start working with customers to fine-tune the product for everything from semiconductors to batteries. It will also investigate government funding opportunities. After seven years of R&D, this could put it in the box seat as global HPA (high purity alumina) demand heats up, it said. RareX (ASX:REE) RareX has been heading north since revealing high-grade gallium in historical drill core from its Cummins Range project in WA's Kimberley and then pointing out that another critical mineral scandium is also present. Shares have reached 3c, a lift of 15.4% on the previous close and have risen from 0.8c at the close on March 24. The latest fillip comes after REE extended its search for gallium at the Khaleesi rare earths project in WA's Albany-Fraser Belt, supported by the award of a grant in Round 31 of WA's Exploration Incentive Scheme co-funded drilling program to cover up to 50% of drill costs. REE already identified extensive gallium mineralisation at the project, including aircore intersections up to 86g/t gallium and rock chips up to 81g/t, and now plans to RC drill test multiple targets. The EIS program entitles the company to receive up to 50% of direct drilling costs, capped at $160,000, and up to 50% of mobilisation costs, capped at $15,000, for a total refund of up to $175,000. REE plans to complete between 300m and 1300m of RC drilling at the project, with an average hole depth of 100m, across six targets. 'This support from the Western Australian government is a strong endorsement of the project's prospectivity and the quality of our technical approach,' REE MD James Durrant said. 'The grant will allow us to accelerate exploration across multiple high-priority targets, including the highly prospective Niobe prospect, where the exploration team has identified a potential very large gallium mineralised system. 'Niobe has the potential for many tonnes of contained metal within the extensive moderately mineralised regolith and basement granitic rocks over 5km x 3km. 'With this funding, we are well positioned to unlock the district-scale potential of the Khaleesi Alkaline Intrusion Complex and advance our strategy to deliver critical minerals for the future.' Gallium is a key mineral with demand growing due to Chinese export restrictions and its vital use in semiconductors, robotics, LEDs and a range of defence applications. And being on the Aussie critical minerals list, it's a no-brainer that exploring the gallium potential at Khaleesi has attracted EIS funding from the WA government. Taruga Minerals (ASX:TAR) Strengthening its WA footprint, Taruga Minerals has exercised an option to acquire 100% of the Thowagee tenement in the northern Gascoyne of WA and is trading 11.11% higher at 1c. Thowagee complements its existing application portfolio, now spanning 416.5km2 of contiguous ground and a dominant landholding with lead, zinc, copper, silver and gold potential. It includes two historical mining sites - Thowagee Mine and Thowagee Bore - with high-grade polymetallic mineralisation occurring in outcropping veins and gossans. TAR's initial reconnaissance and rock chip sampling has proven positive, confirming the general mineralisation trends and high-grade polymetallic nature of mineralisation in the area. Results including heavy mineralised altered country rock samples next to the historical quartz vein focus notably showed potential hefty scale to add to the mineralised system. TAR intends to revive the mine, which has gone underexplored since 1956, when 15.2t of lead and 5878g of silver were extracted in a concentrate produced on site, along with hints of gold, copper and zinc. Field exploration at the project kicked off this month, with work focusing on exploiting the potential riches below high-grade base and precious metals mineralisation in outcrops. Constellation Resources (ASX:CR1) After releasing a quarterly report and launching a non-renounceable entitlement offer to raise up to $2.36 million before costs, Constellation Resources has been 7.7% higher to 14c. Under the entitlement offer, eligible shareholders are entitled to purchase one new fully paid ordinary share for every four fully paid ordinary shares held at the record date, at 15c per share. The offer opened on April 28, 2025, and is scheduled to close at 5.00pm (AWST) on May 19, 2025. In addition to their entitlement, eligible shareholders with a registered address in Australia, New Zealand, Germany or the United Kingdom may apply for additional new shares. In its quarterly, CR1 outlined progress on projects in Western Australia while it continues to evaluate new opportunities in the resources sector. The flagship Ularring copper-gold project is in a region that host several major deposits that are intrusion related, such as the Boddington copper-gold mine and Caravel Minerals' Caravel copper-molybdenum-silver-gold project A dipole-dipole induced polarisation (DDIP) survey defined a high-quality chargeable anomaly which with its relative location to previous drill intersections and relationship within a circular magnetic low, presents as a high-grade intrusion related copper-gold target. Modelled chargeability responses are significantly higher in magnitude when compared to the responses modelled over historic sulphide-copper gold drill intersections located up dip. This may represent increased sulphide development and higher grade Cu-Au mineralisation. A two-hole diamond drilling program is underway initially testing the northern end of the anomaly where the highest and shallowest modelled chargeability peak responses were identified. At CR1's natural hydrogen projects a staged, regional soil gas program is expected to start this quarter at Edmund-Collier once all approvals are obtained. Sampling will be optimised from the outcomes from the CSIRO Kick-Start Program Research Agreement. A second technical services agreement with the CSIRO has commenced to assist in progressing thermal maturity assessments and fluid inclusion analysis. Results from the study will determine if the shale units have generated hydrogen and if true, could indicate a major basin-wide kitchen, one of the key elements needed to help establish a viable hydrogen system. NewPeak Metals (ASX:NPM) (Up on no news) A quarterly report for NewPeak Metals issued last month outlined progress at vanadium and gold projects in Australia, Argentina and Canada as well as a rejuvenated executive team. Although there has been no news, shares have been 33% higher to 1.2c. During the quarter, NPM appointed Mark Purcell as its CEO to lead the execution of an updated strategy. Former CEO David Mason is undertaking a 3-month transition period as executive director to ensure a smooth and successful transition. Following this he will remain on the board as a non-executive director, while Purcell will be appointed managing director. NewPeak has since engaged Alistair Grahame, an exploration geologist with 27 years' experience including 12 years based in Argentina. As project manager for Exeter Resources' Cerro Moro project he refreshed the exploration strategy through integration of databases, re-interpretation and new mapping and geochemical studies. The drill program he designed and managed discovered the high-grade mineralisation that subsequently led to the development of the Cerro Moro mine. Grahame was also involved in redefining exploration strategies for Woolgar (Queensland) and Caspiche (Chile). In February 2025, NewPeak executed a share purchase agreement with AusVan Battery Metals Pty Ltd to purchase that company for $5 million worth of NewPeak shares. AusVan holds six granted exploration permits and one exploration permit application covering the Allaru vanadium project in northwest Queensland, which has an inferred JORC resource of 710 million tonnes of vanadium mineral resource. NewPeak will initially focus on expanding the shallow, oxidised Allaru North project which has a typical depth of 12 m and vanadium grade ranging from 0.19 to 0.68 V2O5, averaging 0.45 V2O5. In conjunction with the transaction, NewPeak plans to undertake a rights issue to raise $2m to $3m at 1.65c per share. The company also holds interests in gold projects in Argentina, the Treuer Range uranium-vanadium project in Australia's Northern Territory and the George River uranium, REE and scandium project in Canada.
