Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Shareholder Meeting (November 2020)
26 slides from Andromeda Metals's shareholder meeting presentation, Nov 26, 2020
Slide 1: Company AGM Presentation
COMPANY AGM PRESENTATION Nov 26th 2020 DEVELOPING A WORLD-CLASS HALLOYSITE-KAOLIN PROJECT ASX:ADN www.andromet.com.au v
Slide 2: Corporate Overview
CORPORATE OVERVIEW 2 $604M $7.7M $0M 2,082M $0.29c MARKET CASH DEBT FULLY PAID CURRENT SHARE CAPITALISATION ORDINARY SHARES PRICE OPTIONS ▪ 68,281,039 listed ($0.012 & expiry 30 Nov 2020) v
Slide 3: Andromeda Board Overview
ANDROMEDA BOARD OVERVIEW Rhod Grivas – Non Executive Chairman ▪ Geologist with 30+ years experience ▪ 20+ years of corporate/board experience ▪ Experience in resource discovery, feasibility studies, development and production ▪ Ex MD of Dioro Exploration (ASX/TSX listed) - South Kal/Frogs Leg Gold M
Slide 4: Andromeda Assets
ANDROMEDA ASSETS 4 HALLOYSITE-KAOLIN PRIMARY FOCUS Great White Kaolin (ADN 75% JV with MEP 25%) and Mount Hope (100%) Projects in South Australia GOLD COPPER ASSETS& JV’S ADDITIONAL Environmental Evolution Mining JV Cobra Resources JV Gold Tenements Copper Recovery JV Gold in Qld Gold in SA Pilbara
Slide 5: What is Halloysite-Kaolin
WHAT IS HALLOYSITE-KAOLIN 5 Standard Kaolin Product Kaolinite Plates Halloysite Tubes The Great White Resource is a naturally occurring blend of tubes and plates v
Slide 6: Kaolin Uses
KAOLIN USES 6 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 Product Ceramics v 34%
Slide 7: Great White Kaolin Project (75% ADN:25% MEP)
GREAT WHITE KAOLIN PROJECT (75% ADN:25% MEP) 7 Primary Project Focus – Halloysite-Kaolin • Great White – one of the world’s largest known high-purity halloysite-kaolin Reserves & Resources • Current total resources of well over 100Mt • Located close to essential infrastructure • Extremely robust Pre
Slide 8: Great White Project Resources
GREAT WHITE PROJECT RESOURCES Great White Project Tenements • Great White 34.6Mt (Approx. 30% increase over PFS Resource) • Hammerhead 51.5Mt • Manta/Bronze Whaler/Tiger - TBD v
Slide 9: Great White Mine Plan
Andromeda GREAT WHITE MINE PLAN Great White 2020 HE Halloysite >5% R4S7>B4% Measured Indicated Halloysite Zone High Purity Zone —— 2020 PFS pit shell 6,368,000 mn. Mine Access Overburden Stockpile Processing Pant Pit Area / |B Soil Stockpile Area 6,367,000 mN : La 1 Mineral claim MPL Boundary 0 moto
Slide 10: Great White Project Progression
GREAT WHITE PROJECT PROGRESSION Mine Plan – Production Target Updated SS PFS Change From Measured Resources 4.2 Mt 11.2 Mt +167% From Indicated Resources 3.4 Mt 1.3 Mt -61% From Inferred Resources 0.0 Mt 0.2 Mt Minimal Total Production Target 7.6 Mt 12.7 Mt +67% Capital Costs Initial Capital Costs $
Slide 11: Camel Lake Prospect (Part of Great White Project)
CAMEL LAKE PROSPECT (Part of Great White Project) Highest Purity and most Consistent Halloysite Discovered Purity of 99.6% Found Very Close to Surface Electron Micrograph of Camel Lake Halloysite v
Slide 12: Mount Hope Project (100% ADN)
MOUNT HOPE PROJECT (100% ADN) Mount Hope Resource PSD Kaolinite Halloysite Domain Mt -45µm % % Southern area is 4 times the average Great Main 12.8 40.95 33.6 0.9 White thickness and still open Halloysite 1.6 39.13 25.6 6.7 Ultra-Bright 3.7 44.37 38.0 0.7 Total 18.0 41.49 33.8 1.4 v
Slide 13: Mount Hope drill intercepts
Mount Hope MOUNT HOPE MH20AC039 MH20AC040 MH20AC039 MH20AC039 MH20AC040 MH20AC040 MH20AC039 -45µm (45.7%) From 7m, 21m @ 85.2% ISO B’ness MH20AC040 -45µm (45.1%) From 7m, 41m @ 81.4% ISO B’ness
Slide 14: Test Results to Date
TEST RESULTS TO DATE Fired Brightness off the Scale Out-Performs the World’s Best Products Grade Mt Hope Mt Hope Eckalite YMT Supreme Speswhite 70% <2um 90% <2 um Country Australia Australia Australia UK UK Brightness (%) 89.0 90.0 88.0 88.0 85.5 Yellowness (%) 4.5 4.1 4.5 3.8 4.7 Oil Absorption (g/
Slide 15: New Halloysite-Kaolin Application
NEW HALLOYSITE-KAOLIN APPLICATION 15 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 Australian Industry Standard
Slide 16: Halloysite Rheology Modifier
HALLOYSITE RHEOLOGY MODIFIER COMPLIANCE TEST REPORT No. 1 Issue date: 25th November 2020 AS 1478.1 – 2000 CHEMICAL ADMIXTURES FOR CONCRETE, MORTARS & GROUT Part 1: Admixtures for concrete. PRODUCT NAME: HRM ADMIXTURE TYPE: SN Test conducted in conjunction with Cement Australia QLD NATA laboratory an
Slide 17: Halloysite & Nanotechnology Uses
HALLOYSITE & NANOTECHNOLOGY USES 17 Most researched clay mineral in the world Use only constrained by supply Hydrogen Storage and Batteries and Super- Water Purification shortage Transport Capacitors >8000 Papers and 100’s of Patents Granted Great White Project halloysite is being tested in numerous
Slide 18: Carbon Capture is Leading the Way
CARBON CAPTURE IS LEADING THE WAY Professor Ajayan Vinu : Global Innovation Centre for Advanced Nanomaterials …”the Great White halloysite-kaolin has been successfully synthesized to create advanced nanomaterials to specifically adsorb CO2 from a mixture of gases, up to 1.1 tonne of CO2 per tonne of
Slide 19: Commercialisation Progress
COMMERCIALISATION PROGRESS v
Slide 20: Current Highlights
CURRENT HIGHLIGHTS 20 Great White Project PFS Mid Term • Concrete application developments • High purity halloysite • Ultra high-purity kaolin evaluation • Nanotechnology commercialisation • High Purity Alumina * Andromeda ASX Announcement July 10 2020 – ‘Maiden Ore Reserve for Carey’s Well Deposit’
Slide 21: Market Value Overview
MARKET VALUE OVERVIEW 21 A$ Millions per Tonne A$1,000/t - A$5,000/t (depending on purity) Halloysite-Kaolin into Concrete and high – purity halloysite applications Expected Profit A$700/t Premium Ceramic Grade Very Significant A$1000/t Premium Coatings Grade Expected Profit Expected Profit: 50% 80%
Slide 22: Key Takeout
KEY TAKEOUT 22 1 2 3 4 Andromeda is a low capex, short Halloysite-kaolin is much more Global supply of high-quality Andromeda aims to be the largest payback period, large scale valuable version of standard kaolin halloysite-kaolin is reducing – supplier of Halloysite-Kaolin and a potential Halloysit
Slide 23: So What's Next?
SO WHAT’S NEXT? 23 IN PROGRESS 2020/2021 • Great White Definitive/Bankable Feasibility Study • Mining lease approvals • Additional halloysite-kaolin and ultra-high purity kaolin resources • Ceramic customers approvals for binding offtakes • Customer offtake agreements for multiple applications • Con
Slide 24: In Summary
IN SUMMARY 24 1 2 3 4 Andromeda has one of the world’s This is a high value industrial Global demand is increasing, and Low capex project with a short largest resources of high purity mineral selling into a low-volatility supply is decreasing timeline to operation halloysite-kaolin market 5 6 7 8 Si
Slide 25: Thank You
THANK YOU James Marsh Managing Director james.marsh@andromet.com.au ASX:ADN www.andromet.com.au v
Slide 26: Cautionary Statements
26 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 order to provide Andro
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