Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Investor Presentation (June 2021)
26 slides from Andromeda Metals's investor presentation, Jun 30, 2021
Slide 1: Developing a World-Class Halloysite-Kaolin Project
For personal use only 30 June 2021 DEVELOPING A WORLD-CLASS HALLOYSITE-KAOLIN PROJECT ASX:ADN www.andromet.com.au v
Slide 2: Corporate Overview
CORPORATE OVERVIEW 2 For personal use only $389M $6.7M $0M 2,160M $0.18 MARKET CASH DEBT FULLY PAID CURRENT SHARE CAPITALISATION (30 Mar 21) ORDINARY SHARES PRICE $0.50 90 $0.45 80 BOARD MEMBERS $0.40 70 • Rhod Grivas – Non Executive Chairman $0.35 60 • James Marsh – Managing Director $0.30 • Joe Ra
Slide 3: Andromeda Assets
ANDROMEDA ASSETS 3 For personal use only HALLOYSITE-KAOLIN PRIMARY FOCUS Great White Kaolin (ADN 75% JV with MEP 25%) and Mount Hope (100%) Projects in South Australia Natural Nanotech (ADN 50% JV with MEP 50%) GOLD COPPER ASSETS& JV’S ADDITIONAL Environmental Drummond Project Cobra Resources JV Cop
Slide 4: Great White Kaolin Project
GREAT WHITE KAOLIN PROJECT 4 (Joint Venture 75% Andromeda:25% Minotaur) For personal use only Primary Project Focus – Halloysite-Kaolin • Great White – considered the world’s largest known high- purity halloysite-kaolin resource • Current total resources exceeding 100Mt • Located close to essential
Slide 5: Binding Offtake Agreement with MSI China
Binding Offtake Agreement with MSI China 5 For personal use only • Jiangsu Mineral Sources International Trading Co. Ltd (MSI) is a Chinese commodity trading house specialising in industrial mineral from overseas suppliers • MSI has long-term business sourcing mineral sands products from prominent A
Slide 6: What is Halloysite-Kaolin
WHAT IS HALLOYSITE-KAOLIN 6 For personal use only Standard Kaolin Product Kaolinite Plates Halloysite Tubes The Great White Resource is a naturally occurring blend of tubes and plates v
Slide 7: Kaolin Uses
KAOLIN USES 7 For personal use only Rubber Cement Other You already use kaolin in a vast number Plastic 3% 3% 1% of applications, everyday 4% Fibreglass 5% Refractories Paper 5% 37% Estimated % Ceramics Medical Paint & Coatings Paints & Coatings Markets of 8% 26.5M/T FOR 2019 Transport Plastic Produ
Slide 8: Ultra-High Purity Kaolin for Coatings
Ultra-High Purity Kaolin for Coatings 8 From Great White & Mt Hope For personal use only Out-Performs the World’s Best Kaolin Coating Products Eckalite YMT Supreme (Leading (Leading Grade Great White Mt Hope Australian European Grade) Grade) Country Australia Australia Australia UK Brightness (%) 90
Slide 9: High Purity Halloysite-Kaolin for Ceramics
High Purity Halloysite-Kaolin for Ceramics From Great White & Mt Hope For personal use only Fired Brightness off the Scale for Both Resources • Binding Offtake signed for 5,000t/pa with Japanese customer @ A$700/t • Total Japanese market estimated at 45,000t/pa • Total Chinese market estimated at ~
Slide 10: New Halloysite-Kaolin Application
NEW HALLOYSITE-KAOLIN APPLICATION 10 For personal use only Exciting New Applications in Construction Products Halloysite-Kaolin Rheology Modifier being Addition levels as low as 1kg/m3 tested in a range of construction products of concrete show clear positive benefits in handling and strength Austra
Slide 11: Halloysite & Nanotechnology Uses
HALLOYSITE & NANOTECHNOLOGY USES 11 For personal use only Natural Nanotech JV Most researched clay mineral in the world Carbon Dioxide Batteries and Super- Water Purification Capture/Storage and Capacitors Conversion to Fuels Use only constrained by supply shortage 100’s of Patents Granted Pilot Pla
Slide 12: High Purity Alumina Project
12 HIGH PURITY ALUMINA PROJECT For personal use only • HPA is recognised as a key component in the Lithium-Ion Battery supply chain • Annual demand is set to quadruple between 2020 and 2028 causing a significant shortfall in supply • Current 4N (99.99%) HPA pricing is approx. US$24,000/t and 5N (99.
Slide 13: Feasibility Study Progress
FEASIBILITY STUDY PROGRESS 13 For personal use only Great White Project PFS DFS and upside • On-site wet processing from start of production • Likely to incorporate a phased construction: • 250ktpa of ore processed year one • Doubling of capacity end of year two • Based on coatings and ceramic marke
Slide 14: What's Next
WHAT’S NEXT 14 For personal use only • Additional Binding Offtake Agreements • Definitive/Bankable Feasibility Studies • Mining Approvals • High Purity Halloysite – resource and/or purification • Concrete Application Testing – commercial agreement • Additional Resources • Nanotechnology Commercialis
Slide 15: Key Raising Details
Key Raising Details 15 Up to $45m capital raise to support ongoing development For personal use only • Targeting a $45 million capital raise via a placement and Post-capital raise pro forma $45 million raise SPP Pre-raise ordinary shares 2,160,727,827 87.8% • Single tranche placement of up to $30 mi
Slide 16: Indicative placement and SPP timeline
For personal use only Indicative placement and SPP timeline 16 Key dates Record Date SPP 29 June 2021 Andromeda announces completion of placement & intention to launch SPP 30 June 2021 Dispatch SPP Booklet to eligible shareholders and release offer letter on the ASX 06 July 2021 Opening Date of SPP
Slide 17: Key Takeouts & Summary
KEY TAKOUTS & SUMMARY 17 For personal use only 1 2 3 Andromeda has one of the world’s This is a high value industrial Global demand is increasing, and largest resources of high purity mineral selling into a low-volatility supply is decreasing halloysite-kaolin market 4 5 6 Simple business model with
Slide 18: James Marsh, Managing Director
For personal use only James Marsh Managing Director james.marsh@andromet.com.au ASX:ADN www.andromet.com.au v
Slide 19: Cautionary Statements
19 For personal use only Cautionary Statements The preliminary feasibility study (Pre-Feasibility Study, PFS) referred to in this announcement has been undertaken to study a range of options to produce high-quality halloysite-kaolin product from the Kaolin Resource at Poochera in South Australia in
Slide 20: International Offer Restrictions
20 For personal use only International Offer Restrictions No action has been taken to register the securities or otherwise permit a public offering of securities in any jurisdiction. The distribution of this document outside Australia may be restricted by law. Persons who come into possession of thi
Slide 21: International Offer Restrictions (continued)
21 For personal use only International Offer Restrictions (continued) United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of
Slide 22: Key Risks
Key Risks 22 For personal use only Development of the The Company's ability to successfully develop and commercialise the Great White Project may be affected by factors including feasibility study and project construction delays or costs overruns. If the Company Great White Project experiences proje
Slide 23: Key Risks (continued)
Key Risks (continued) 23 For personal use only Resource and Reserve Current and future Mineral Resource and Ore Reserve estimates for the Company's projects are estimates only and are expressions of judgement based on knowledge, experience and industry practice. In Estimates and addition, by their v
Slide 24: Key Risks (continued)
Key Risks (continued) 24 For personal use only Operational Risks The Company’s operational and development activities will be subject to numerous operational risks, many of which are beyond the Company’s control. The Company’s operations may be curtailed, delayed or cancelled as a result of factors
Slide 25: Key Risks (continued)
Key Risks (continued) 25 For personal use only Key Personnel and Staff The responsibility of overseeing the day-to-day operations and the Company’s strategic management depends substantially on its senior management and key personnel. There can be no assurance given that Risk there will be no detrim
Slide 26: Key Risks (continued)
Key Risks (continued) 26 For personal use only General Risks Securities investments and share market conditions: There are risks associated with any securities investment. The prices at which the securities trade may fluctuate in response to a number of factors. Furthermore, the stock market, and in