Slide 1: ASX Announcement: 2023 DFS investor presentation and webcast details
28 August 2023 Andromeda Metals Limited ASX: ADN ASX Announcement 10/431 King William Street Tel:+61 8 7089 9800 ABN Adelaide, SA 5000 admin@andromet.com.au 75 061 503 375 2023 DFS investor presentation and webcast details Andromeda Metals Limited (ASX: ADN) (Andromeda) advises investors that Bob Ka
Slide 2: Results of the 2023 DFS for The Great White Project
Andromeda For personal use only The Great White Mineral Company Results of the 2023 DFS for The Great White Project ASX:ADN andromet.com.au Level 10, 431 King William Street, Adelaide, South Australia 5000 +61 8 7089 9800 Authorised for release by the Board of Andromeda Metals Ltd
Slide 3: Disclaimer and qualifications
Assumptions and Notes for Financial Information in this presentation: Disclaimer and qualifications The information in this presentation is derived from the 2023 DFS, which was prepared for the sole and exclusive • The 2023 DFS financial model methodology has been verified by an independent financia
Slide 4: Third party data from consultants and government agencies
Third party data from consultants and government agencies Andromeda has relied on information provided by specialist consultants and government agencies in preparing the Mineral Resources and Ore Reserves Estimates 2023 DFS and this presentation. Andromeda has reviewed all information to the best of
Slide 5: Acknowledgement of Country
Acknowledgement of Country Andromeda recognises the Kaurna people of the Adelaide Plains and For personal use only the Wirangu people of South Australia’s Eyre Peninsula as the Traditional Owners and Custodians of the lands on which we operate. We pay our respect to Elders past and present, and reco
Slide 6: 2023 DFS delivers a 65% NPV increase to $1.01 Billion
1 2023 DFS delivers a 65% NPV increase to $1.01Billion Average annual EBITDA increased by 59% to $130 million The 2023 DFS follows a comprehensive commercial strategy review and approach to developing the world-class, high quality halloysite-kaolin of The Great White Deposit. For personal use only I
Slide 7: 2023 DFS – Key Metrics Comparisons to 2022 DFS
2023 DFS – Key Metrics Comparisons to 2022 DFS Compelling Project Economics 2022 DFS 2023 DFS $613 million NPV8 $1,010 million +65% Enhanced product portfolio and pricing environment $4,706 Revenue $6,207 million +32% has resulted in revenue increase of 32% to $6.2 billion For personal use only Kaol
Slide 8: Improvements driven by enhanced sales and product mix
Improvements driven by enhanced sales and product mix Supported by more favourable foreign exchange and operating costs, with logistics costs impacted by product mix For personal use only NPV – 2022 DFS vs. 2023 DFS Revenue – 2022 DFS vs. 2023 DFS $1,300 $1,200 $24 $3 $1 $12 $54 $53 $112 $139 $1,100
Slide 9: Strong cashflows over years LOM
Strong cashflows over 28 years LOM 300 2023 DFS – Cashflow over Life of Mine 3,500 For personal use only 3,000 250 2,500 200 2,000 150 1,500 Improvement in payback ($ millions) ($ millions) 100 period to 5.1 years6 driven by 1,000 50 increased margin and 500 reduced capital costs 0 - -50 (500) -100
Slide 10: Key driver of the 2023 DFS is the Commercial Strategy review
Key driver of the 2023 DFS is the Commercial Strategy review For personal use only Identified a product portfolio that balances a rigorous segmented market to mine approach with a disciplined and optimised mine to market response. 9
Slide 11: Market to Mine
Market to Mine • Key macroenvironment and microenvironment drivers to understand strategic market opportunities For personal use only • Strategic Lens decision-making tool to identify strategic white mineral product options • Market and technical validation to determine value in use (VIU) across tar
Slide 12: Strengthening global prices driven by geopolitical risk and supply shortages
Micro- Macro- environment environment Strengthening global prices For personal use only Market to Mine Driven by geopolitical risk and global and regional supply shortages Ukraine, a word leader in high Companies increasingly looking to quality kaolin for use in ceramic diversify their supply chains
Slide 13: Confirmed high quality against European sources of supply
Market and Technical Strategic Lens Validation Confirmed high quality against European sources of supply For personal use only Market to Mine 10 International benchmarking confirms Great White CRM as market leading TM Fired Samples at 1200 C Results of analysis on Andromeda’s Great White CRMTM show:
Slide 14: Established above market high value in use in the global high quality kaolin market
Market and Technical Strategic White Mineral Validation Product Options Established above market high value in use in the global high quality kaolin market For personal use only Market to Mine Independent testing confirms Great White CRMTM as a market leading product Value-in-use test work conducted
Slide 15: Established above market value in high quality kaolin markets
Market and Technical Strategic White Mineral Validation Product Options Established above market value in high quality kaolin markets For personal use only Market to Mine 12 Market leading position of Great White CRM for potential displacement of white minerals TM Ceramic tile formulation Great Whit
Slide 16: Positioned to be the industrial mineral of choice in the global ceramics market
Market and Technical Strategic White Mineral Validation Product Options Positioned to be the industrial mineral of choice in the global ceramics market For personal use only Market to Mine Great White CRM™ properties and applications13 High brightness is retained in Top 3 Iron/Alumina ratio high tem
Slide 17: Decarbonisation opportunities in construction materials
Market and Technical Marketing and Sales Strategic Lens Validation Strategy Decarbonisation opportunities in construction materials For personal use only Market to Mine Regulations and ESG standards support the product portfolio Great White HRM™ Offtake Strategy for Global Low-Carbon • Working with
Slide 18: The Strategic Lens identifies strategic white mineral product options
Core Complementary Business Business Products Products The Strategic Lens identifies strategic white mineral product options For personal use only Market to Mine Andromeda’s Strategic Lens Andromeda’s Core and Complementary product portfolio Product commercialisation is validated by a product lifecy
Slide 19: Mine to Market Response
Mine to Market Response • Ensure products are value accretive for the LOM For personal use only • LOM plan and schedule is developed • Product mix determined in response to evolving market demand • Sales plan developed to match the product mix, which may be adjusted depending on current demand LOM P
Slide 20: Updated mine development plan
Mine Response Updated mine development plan Supports accelerated sales profile and reduced costs For personal use only • New starter pit positioned for ideal mine response to the market to mine plan • Improved sequencing of overburden removal reduces cost (Concrete) (Tableware) Mine to Market • Cost
Slide 21: LOM Plan + Mining Schedule
LOM Plan + Mining Schedule Staged expansion optimised by Mine to Market Response The 4-stage development will ramp up to full anticipated production of 300ktpa Stage Stage 1A Stage 1B Stage 2 Stage 3 First Shipment Oct 2024 Dec 2025 Dec 2027 Dec 2029 For personal use only Kaolin Production 50,000 tp
Slide 22: Execution
Execution For personal use only • Marketing and sales strategy identified strategic trends and pricing, branding and positioning, promotion and key target customers and distributors • Developed hub and spoke offtake strategy • Sales and operational planning based on understanding of customer quality
Slide 23: A strategic approach to Sales & Marketing
A strategic approach to Sales & Marketing Driven by revised offtake strategy Execution Sales Agreements: Offtake Strategy for the Global High Quality Ceramic Tiles Market For personal use only Great • Long form offtake agreement with Plantan Yamada Co White Ltd, for the supply of Great White KCM™90
Slide 24: Stage 1A Processing Plant
Sales and Operational Planning Stage 1A Processing Plant Design and procurement readiness ahead of planned construction Execution Long lead items ✓ Ordered For personal use only • Dryer – ordered • Thickener ✓ Ordered • Drum washer ✓ Ordered • Filter press • Filter cake feeder Terms agreed • Noodler
Slide 25: Adapting logistics to meet market and partner needs
Adapting logistics to meet market and partner needs Transport and shipping options to cater to changing conditions Execution Updated Logistics Routes For personal use only Thevenard Future Catering to customer needs Opportunity Bagged product taken by road to Whyalla for delivery in bulka bags or Po
Slide 26: Safe and sustainable operations
Safe and sustainable operations Aiming to be a supplier, partner and employer of choice As the Company moves into production, its aspiration is to adopt, monitor and report on relevant frameworks and metrics that emerge from the developing consensus and convergence of ESG standards For personal use
Slide 27: Key Corporate and Project Risks
Key Corporate and Project Risks 23 Mitigation plans are in place For personal use only Corporate Risks Project Risks • Major and unrecoverable failure to • Safety incident on site leads to deliver on material announced project incident/fatality outcomes • Processing plant does not perform to • Fundi
Slide 28: Why "now"?
Why “now”? Forces making “now” the right time for developing The Great White Project For personal use only Unique, high quality, Global depletion of high large resources quality kaolin deposits • Defined, very high value in use • Porcelain tableware market • Clear view on target segments Geopolitica
Slide 29: Contact
Andromeda For personal use only The Great White Mineral Company For more information about the Company, please visit our website, www.andromet.com.au or contact: Patrick Sinclair Manager, Investor Relations & Corporate Affairs T: 08 7089 9819 M: 0403 708 431 E: Patrick.Sinclair@andromet.com.au