How has Andromeda Metals Enhanced its Product Portfolio with Significant Economic Improvements in the 2023 DFS?

Andromeda Metals Limited (ASX: ADN) has unveiled the results of its updated Definitive Feasibility Study (2023 DFS), showcasing a remarkable enhancement of its product portfolio and significantly improved economics. This follows a comprehensive commercial strategy review that aims to develop the world-class Great White Deposit.

Key Findings:

The Great White Project (TGWP) is now construction-ready, with all necessary permits in place.
The net present value (NPV) of the Great White Project has surged by 65% to $1,010 million, and the average annual earnings before interest tax depreciation and amortization (EBITDA) have increased by 59% to $130 million.

The increased NPV and EBITDA can be attributed to several factors, including strengthened global prices driven by geopolitical risk and supply shortages, an enhanced product mix and partner portfolio, high value in the use of Andromeda products in key market segments, an updated mine development plan, and improved weighted average product margins.

The commercial strategy review has solidified Andromeda's core product portfolio, consisting of Great White CRMTM and Great White KCMTM 90, both of which have demonstrated value above market expectations in the ceramics and porcelain tableware sectors.

In addition to the existing use of Great White HRMTM as a rheology modifier, Andromeda has identified the opportunity to enter the global market for low-carbon concrete production with this product.

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Industrial sand co-products, which were not commercialized in the previous feasibility study, will now be sold to meet the regional demand in the construction and infrastructure markets.

There is also the potential for High Purity Alumina (HPA) to be included in Andromeda's product portfolio, pending further funding and technical and market validation.

Andromeda remains committed to sustainable development, adopting a low-impact approach to mining and processing throughout the life of the Great White Project. The company emphasizes ongoing and transparent consultation with all stakeholders, including First Nations communities and the local community.

In terms of emissions, Andromeda estimates that the Scope 1 and 2 emissions (mine to gate) for Stage 1A will be 0. 097 tonnes CO2-e per tonne of product. This equates to 0. 17 kilograms per Australian dollar and 0. 29 kilograms per Euro at full production. The Scope 3 emissions (gate delivered to port) are estimated at 0. 184 tonnes CO2-e per tonne.

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