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Andromeda: conquering the complex halloysite-kaolin

Andromeda

Andromeda Metals is readying itself for a final investment decision (FID) on its Great White kaolin project (GWKP) in South Australia after the release of its definitive feasibility study (DFS).

The DFS demonstrated the project to have a net present value (NPV) of $613 million and an internal rate of return (IRR) of 36 per cent.

With an expected mine life of 28 years, Great White will generate an estimated $81.5 million in annual EBITDA (earnings before interest, taxes, depreciation and amortisation) for a total EBITDA of $2.28 billion.

Great White’s total capital cost will be $233 million, with the approvals, design and construction of the project set to make up the majority of the capital ($206.6 million).

Andromeda envisages an 18-month design and construction timeline to achieve first product to market. The company aims to commence Great White construction in late 2022 once it has gained the necessary regulatory approvals.

Andromeda has already executed two offtake agreements, with Plantan Yamada and Jiangsu Mineral Sources International Trading Co. signing on for the Great White CRM and PRM product respectively.

Plantan Yamada will purchase 5000 tonnes of halloysite-kaolin per annum at $700 per tonne for use in ceramics, while Jiangsu will purchase 70,000 tonnes of kaolin per annum for more than $700 per tonne for use in the coatings and polymers market.

Andromeda will focus on securing additional offtake agreements, secondary approvals and financing across the next six months. An FID will also take place in due course.

Andromeda managing director James Marsh said the company was in a strong position to elevate Great White into production.

“The DFS confirms the project as a globally significant supplier of high value kaolin to international ceramic, paint and other specialised markets,” he said.

“The completion of this stage in the development of the GWKP further advances Andromeda as a fast-growing South Australian company with a vision to lead the world in the sustainable supply of superior quality industrial minerals and advancement of nanotechnologies.”

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