Andromeda Metals Limited
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How Andromeda Metals is Making Strides with The Great White Project
Australian mining company, Andromeda Metals Limited (ASX: ADN), has released its quarterly activity report for September 2023, showcasing the progress made in advancing The Great White Project (TGWP). Let's dive into the highlights of their achievements during this period.
Enhanced Economic Outlook
The updated Definitive Feasibility Study (DFS) conducted by Andromeda's team included a comprehensive strategy review that resulted in an enhanced product portfolio targeting high-value markets. The study revealed significant improvements in economics compared to the previous year's DFS, with a 65% increase in net present value (NPV) to $1. 01 billion over a 28-year mine lifespan. Additionally, there was a 59% increase in average earnings before interest tax depreciation and amortization (EBITDA) to $130 million per year.
Positive Offtake and Commercial Agreements
Andromeda announced several positive developments in their offtake and term sheet agreements.
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They received a Letter of Intent from IberoClays SLU, securing exclusive distribution of 15,000-20,000 tonnes per year to the Mediterranean region. Pre-payments for quarterly orders were confirmed by September 30, 2025. Additionally, a Binding Offtake Agreement was signed for the sale of 120,000 tonnes of kaolin products over the first five years of production, targeting the Chinese market.
Promising Technical Progress
Independent test work and value in use analysis conducted by ITC on Great White CRM™ confirmed its potential as a replacement for zircon. The end-use customer validation test work on Great White HRM™ also continued, showing promising results.
Operational Advancements
Andromeda made significant progress in the procurement of long lead items, with all necessary items now in the process of being ordered. This ensures efficient operations in the future.
Corporate Updates
The company announced the appointment of Pascal Alexander-Bossy as the new Chief Financial Officer, who will join the team starting from November 20, 2023. Andromeda also received a $1. 2 million refund from the Australian Taxation Office related to incentives for research and development activities conducted during the 2022 financial year.
Looking Ahead
Andromeda's Managing Director and CEO, Bob Katsiouleris, expressed satisfaction with the quarter's achievements, citing significant progress in building partnerships for The Great White Project's development. He emphasized that the completion of the 2023 DFS allows for the continuation of their funding strategy, enabling the project to move forward towards construction and production as planned.
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