“Completing this stage of GWKP’s development advances Andromeda as a fast-growing South Australian company with a vision to lead the world in the sustainable supply of premium industrial minerals and the advancement of nanotechnology. says MD James Marsh.
Andromeda Metals Ltd (ASX:ADN) has gained confidence that the Great White Kaolin Project (GWKP) will be a global contributor of high quality kaolin through the completion of a strong Definitive Feasibility Study (DFS) and reserve updated ore.
Andromeda claims that the DFS has demonstrated high-margin cash flow with a pre-tax net present value (NPV) of A$613 million and an internal rate of return of 36%.
Earnings before interest, tax, depreciation and amortization (EBITDA) is expected to be approximately A$2.283 billion, with a life of mine (LOM) of 28 years, for an average annual EBITDA of A$81.5 million. Australian dollars.
Great White’s ore reserve now stands at 15.1 million tonnes, against a mineral resource estimate of 34.6 million tonnes.
DFS advances Andromeda’s vision
“DFS confirms the project as a globally significant supplier of high-value kaolin to the international ceramic, paint and other specialty markets,” Andromeda Metals Managing Director James Marsh said. .
“Completing this milestone in the development of GWKP advances Andromeda as a rapidly growing South Australian company with a vision to lead the world in the sustainable supply of premium industrial minerals and the advancement of nanotechnology.”
Andromeda has planned the development of the deposit to take place in four stages with an initial capital expenditure of A$93.8 million. The company expects to achieve first production within 18 months once design and construction begins.
All capital expenditures after stage one are intended to be funded from project cash flow, with an expected payback period of 5.9 years, based on throughput of 600,000 tonnes of ore per year at the third step.
Andromeda will now progress secondary approvals and detailed design. The company expects products from the project to be of high quality and plans to use conventional mining and processing.
Over the next six months, Andromeda will focus on marketing, securing other binding offtake deals, and financing.
The company will likely order long-lead items and begin mine prep work once secondary approvals are received.
ADN intends to continue optimizing the DFS in the next stage of detailed engineering and development of final work packages.
About Andromeda Metals
Andromeda Metals is an emerging industrial minerals company based in Adelaide, South Australia, with a vision to become the world’s leading supplier of high quality halloysite-kaolin.
The development of the Great White Kaolin deposit remains central to Andromeda, with the Mount Hope project offering potential future growth opportunities for the company.