Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Noosa Mining Virtual Conference 2020
13 slides from Andromeda Metals's conference presentation, Jul 15, 2020
Slide 1: Developing a World-Class Halloysite-Kaolin Project
Andromeda Developing a World-Class Halloysite-Kaolin Project James Marsh, Managing Director Noosa Mining Virtual Conference th July 15 2020 ASX:ADN www.andromet.com.au
Slide 2: Andromeda Corporate Overview
Andromeda Corporate Overview Capital Structure (as at 30th June 2020) ➢ Market Capitalisation $78.2M ➢ Cash $3.0M ➢ Debt $0M ➢ Enterprise Value $75.2M ➢ 1,532,863,256 fully paid ordinary shares Options • 615,173,484 listed ($0.012 & expiry 30 Nov 2020) • 17,500,000 unlisted ($0.012 & expiry 15 Nov 2
Slide 3: Company Overview
Company Overview Our Vision To be a world leading supplier of halloysite-kaolin and nanotechnology materials ▪ Primary Focus - developing the Poochera Project core asset in South Australia into a world-class halloysite-kaolin operation ▪ Three new potential resources drilled and results pending ▪ Ex
Slide 4: Poochera – World Class Opportunity
Poochera –World Class Opportunity Primary Project Focus - Halloysite-Kaolin ▪ Carey’s Well - among the world’s largest halloysite-kaolin Reserves & Resources (1) ▪ Located close to essential infrastructure ▪ Pre-Feasibility Study delivered extremely robust project economics (2) ▪ High grade halloysi
Slide 5: Significant Resources
Significant Resources The Poochera resource is a naturally occurring blend of halloysite tubes and kaolinite plates Pre-Feasibility Study Resource Estimate for Carey’s Well ▪ 26Mt of “bright white” kaolinised granite (now an Ore Reserve*) ▪ High halloysite component of 9.7Mt Future Opportunities Kao
Slide 6: The Halloysite-Kaolin Market
The Halloysite-Kaolin Market Mature Established Market ▪ Ceramics (high-quality porcelain) – Offtake LOI’s signed for a total of ➢The global market for kaolin into ceramics is about 9 million tpa with a projected compound annual almost 1 million tpa in 3 product forms growth rate of 4% through to at
Slide 7: Operational Strategy
Operational Strategy Short Term – early cash flow ▪ Based on Carey’s Well Resource ▪ Direct Shipping Ore (DSO) to Toll Wet-Refining ▪ Wet Refining Toll Process (China/Japan) – premium product Medium Term – 18 months from start of operations ▪ Wet Process at Mine Site – 50% sand removal ▪ Potential t
Slide 8: Pre-Feasibility Study Highlights
Pre-Feasibility Study Highlights • Initial mine life of 26 years mining at 500ktpa • Early shallow open-cut mining to ship DSO for toll wet-refining overseas • Wet-processing on site during the second year of operation to remove sand (50%) • EBITDA (LOM) of A$2.06B • Net Present Value of A$736M (pre
Slide 9: The Halloysite Nanotube Potential
The Halloysite Nanotube Potential Emerging and Existing Applications ➢ Hydrogen Storage and Transport ➢ Batteries and Super-Capacitors ➢ Water Purification ➢ Carbon Dioxide Capture/Storage and Conversion to Fuels ➢ Medical Delivery of Drugs and Anti-Bacterial Properties ➢ Construction ➢ Agriculture/
Slide 10: What's Next?
What’s Next? • Mining lease approvals – in progress • Progress customer offtake agreements – through 2020 • Define a kaolin resource at Mount Hope - imminent • Define a halloysite-kaolin resources at Condooringie and Tomney – 2020 • Potential studies on Condooringie and Mt Hope prospects – starting
Slide 11: Andromeda - A Compelling Story
Andromeda - A Compelling Story ▪ Time ▪ Cost Enviable Project Metrics ▪ Complexity ▪ Payback ▪ Risk Andromeda Phase 1 Andromeda Phase 2 Large Gold Project Large Lithium Project High Purity Alumina Project DSO On-Site Processing • Capex A$28M • Capex - funded from cashflow • Capex A$1.0B • Capex A$1.
Slide 12: In Summary
In Summary ▪ Andromeda has one of the world’s largest resources of halloysite-kaolin ▪ This is a high value industrial mineral selling into a low-volatility market ▪ Global demand is increasing and supply is decreasing* ▪ Low capex project with a short timeline to operation ▪ Simple business model w
Slide 13: Thank You
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 Androme
Andromeda Metals — Noosa Mining Virtual Conference 2020 on 6ix