Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Investor Presentation (May 2025)
41 slides from Andromeda Metals's investor presentation, May 12, 2025
Slide 1: Andromeda: The Great White Mineral Company
Andromeda For personal use only The Great White Mineral Company Company Update May 2025 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 Directors of Andromeda Metals Ltd
Slide 2: Disclaimers and Important Information
Disclaimers and Important Information This presentation contains summary information about Andromeda, and its activities current only at the date of this presentation. Information in this presentation which is attributed to, or derived from, a third-party source has not been independently checked or
Slide 3: Section A: Executive Summary
For personal use only Section A: Executive Summary 3
Slide 4: Andromeda Metals
Andromeda Metals Australia’s next leading industrial minerals products company Who is Andromeda? What is the Opportunity? • Andromeda Metals (Andromeda, the Company) is an ASX-listed • The Project has been largely de-risked and is ready to develop: (ADN) pre-development industrial minerals company •
Slide 5: Investment Thesis
Investment Thesis De-risked, high-grade asset • The Great White Project (GWP): High-grade kaolin asset delivering premium products over a 28-year mine life • Strong economics: $763M post-tax NPV8; 43% IRR; $140M average annual EBITDA Tier 1 Project • Favourable capex: low $194M capex hurdle achievab
Slide 6: Section B: Opportunity Overview
For personal use only Section B: Opportunity Overview 6
Slide 7: Corporate overview
Corporate overview Experienced Board & executive team to execute Andromeda’s strategy Andromeda Metals Limited (ASX:ADN) $0.030 Board of Directors $0.025 For personal use only $0.020 $0.015 $0.010 Sue-Ann Higgins Mick Wilkes JD Sorel Miguel Galindo $0.005 Executive Chair Independent Non- Non-Executi
Slide 8: The Great White Project
The Great White Project Staged Delivery of a High-Value Project Characteristics 3-Stage Development with Robust Economics (NPV 8, real post-tax)1 High-grade 15.1Mt reserve supporting From Stage 2, Project will generate $140m Stage 2 ≅ 120,000 wmt pa 28-year mine life annual EBITDA for 22 years Cap
Slide 9: Stage 1A+ supported by binding offtakes
Stage 1A+ supported by binding offtakes Agreements for Andromeda’s premium ceramic kaolin Binding Offtake Agreements support Stage 1A+ production capacity5 Overview of Offtakers Wet metric tonnes per annum Offtaker Market Company and end uses Ongoing contracted volumes>> 100,000 Physical commodity
Slide 10: Targeting Premium Markets
Targeting Premium Markets Offtakes geared towards high-quality/price kaolin import markets Target markets Target segments Key metrics • Spain: #3 importer of kaolin1; #8 ceramic tile producer2; #3 exporter of ceramic tiles2 Europe High-end • Italy: #1 importer of kaolin1; #9 ceramic tile producer2;
Slide 11: HPA Breakthrough
HPA Breakthrough Successful Production of 4N HPA & Validation of Novel Flow Sheet1 • Lab-scale test work undertaken to produce HPA on novel flowsheet using high-quality refined kaolin from the Great White Project (GWP) . • Independent analysis confirms HPA produced above 99.99% purity (4N HPA), at 9
Slide 12: Stage 1A+ funding process update
Stage 1A+ funding process update Moving towards FID Entered exclusive negotiations with Merricks Capital for a debt financing facility of up to $75 million1 • A leading Australian alternatives investment manager and hard-asset investment specialist that has managed over $8 billion in AUM. • Exclusiv
Slide 13: Section C: Global kaolin market & Andromeda's products
For personal use only Section C: Global kaolin market & Andromeda’s products 13
Slide 14: The kaolin market
The kaolin market Globally important industrial mineral Large, Diversified Global Market De-Commoditised Market • Natural white clay which is processed into a wide range of products • Not a commodity market – product-driven market with large quality and price differentials • Products are used in a d
Slide 15: Supply-demand outlook
Supply-demand outlook GDP+ demand growth supported by challenged supply 1 Demand growth in excess of global GDP Highest growth segment is Andromeda’s targeted ceramics segment (6.4% CAGR)1 2 Depletion of high-quality sources of supply Affecting all major production regions (Europe, China, USA) 3 Few
Slide 16: What makes a premium ceramics kaolin?
What makes a premium ceramics kaolin? Andromeda delivers high “value in use” to customers • Value in use is the pricing basis for industrial minerals. It quantifies the profit realised through converting a raw material into a finished product • Andromeda has established high value in use and premium
Slide 17: What is Andromeda's market position?
What is Andromeda’s market position? High quality kaolin products for premium ceramics Validated premium ceramic kaolins for use in ceramic formulations to deliver premium products Ceramic Product: Great White CRM T Engobe & Frits* A refined high-quality product for the high-end • application opport
Slide 18: Where does Andromeda's Kaolin Price?
Where does Andromeda’s Kaolin Price? Premium pricing for high value in use • Andromeda’s premium products are priced within the high-quality range of global kaolins – as validated by signed offtake agreements o European competition regulations do not allow the publishing of pricing received under co
Slide 19: Product in Development – HPA
Product in Development – HPA HPA Breakthrough: Successful production of 4N HPA & validation of novel flowsheet Producing HPA from Andromeda’s high-quality kaolin Progress with HPA2,3 • Great White kaolin ideally suited to make High-Purity Alumina (HPA): Development of novel flowsheet to produce HPA
Slide 20: Product in Development – Zircon Displacement
Product in Development – Zircon Displacement Zero incremental capex cost Leveraging the high whiteness of Great White CRMTM to reduce the usage of high-cost zircon as a whitening agent in ceramic tiles and slabs For personal use only Zircon displacement with Great White CRMTM Substantial addressable
Slide 21: Product in Development – Concrete Decarbonisation
Product in Development – Concrete Decarbonisation ~50% margin uplift at zero incremental capex cost Great White HRMTM Mechanics and Price Drivers An additive that can assist in decarbonising concrete, cost-effectively How it works • Value in use and pricing strategies driven by material commercial b
Slide 22: Section D: Delivering the Great White Project
For personal use only Section D: Delivering the Great White Project 22
Slide 23: The Great White Project: Defined, de-risked & deliverable
The Great White Project Defined, de-risked & deliverable Building blocks are in place to deliver the GWP Key Foundations First Stage Execution First Stage Operations For personal use only Mining & Environmental Stage 1A+ 2024 Bankable Mining contractor shortlisted Approvals Granted Feasibility Study
Slide 24: Foundation Works
Foundation Works LOM scope & strategy driven by approvals held & Andromeda’s feasibility studies Approvals (ML & PEPR) Feasibility Studies The Project has received all required approvals to commence Andromeda feasibility studies have established the viability of development GWP and the development p
Slide 25: LOM capacity pathway
LOM capacity pathway Modular expansion to Stage 1B and Stage 2: derisking the path to full capacity Full capacity of 330 ktpa delivered by 48 months from Stage 2: Stage 1A+ final investment decision (FID) Final Stage 2: Completion* Stage 1B FID Final +48 months Stage 1A+ supports a majority of site
Slide 26: Preparations ahead of planned construction
Preparations ahead of planned construction Freehold land purchased Drum washer built Thickener built Centrifuge purchased For personal use only Fluid bed dryer built Stage 1A Filter press built Cake feeder designed Engineering design 26
Slide 27: Stage 1A+ execution
Stage 1A+ execution Defined development plan to be executed by Andromeda’s experienced Project Team Stage 1A+ design and construction will be executed under an owner direct managed strategy by a dedicated Project Team, delivering: • an integration of design, procurement, construction, quality, commi
Slide 28: Stage 1A+ operations
Stage 1A+ operations Low risk mining and processing Mining CRM TMP stockpiles * (high/medium/low) • Ore body is shallow with a low strip ratio. • Mining of ore will be predominantly free dig operation (60 tonne CRM TMT stockpiles ROM blending/feed Mining excavator) (high/medium/low) ores to process
Slide 29: Logistics
Logistics Optionality and opportunities GWP planned logistics route and expansion alternatives Thevenard For personal use only Potential for bulk • Proposed route via Adelaide is shipments with product taken by considered a lower risk option road to Thevenard • As production expands, Whyalla increme
Slide 30: Resource Profile
Resource Profile Commercial optionality & potential upside value Andromeda’s regional high-quality kaolin resources profile Classification Whole Rock -45 µm fraction For personal use only Measured Indicated Inferred Total -45 µm ISO B Al2O3 Fe2O3 TiO2 Deposit (Mt) (Mt) (Mt) (Mt) (%) (%) (%) (%) (%)
Slide 31: Focused on safe and sustainable operations
Focused on safe and sustainable operations With the aim of being 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 standar
Slide 32: GWP is de-risked and construction-ready
GWP is de-risked and construction-ready Stage 1A+ Funding Process is underway Tier 1 asset in a low-risk mining jurisdiction De-risked and with all key permits required to commence construction 100% of planned production capacity for Stage 1A+ committed under binding offtake contracts in year
Slide 33: Section E: Project economics
For personal use only Section E: Project economics 33
Slide 34: Project economics
Project economics Robust returns with low capex hurdle Andromeda has assessed the economics of each Stage of development • Standalone economics of each Stage analysed – i.e. the discrete added value of each Stage to determine investment decision • NPV calculated at an 8% discount rate on a real, pos
Slide 35: Project economics: LOM progressive cashflow
Project economics LOM progressive cashflow Rapid payback followed by 22 years of $140 million average annual EBITDA • Generational asset delivers significant long-term cash generation 250 2,500 For personal use only 200 2,000 150 1,500 100 1,000 $ millions 50 500 - - (50) (500) (100) (1,000) (150) (
Slide 36: Summary of Key Risks
Summary of Key Risks The Risks section describes some of the potential risks associated with an investment in the Company. Any In order to bring the Great White Project into development, the Company will need significant funding in addition to investment in the Company is subject to risk factors spe
Slide 37: Summary of Key Risks
Summary of Key Risks Notwithstanding this, there is a risk that: • Commercialisation of Great White HRMTM will not be successful, and this product will not be accepted by end users Mine Development and Operational risks in the market; • the Company will be unable to commercialise the use of its prod
Slide 38: Summary of Key Risks
Summary of Key Risks Executive Management and Key Personnel The responsibility of overseeing the day-to-day operations and the Company’s strategic management depends Offtake Agreements substantially on its Directors and senior management. There can be no assurance that there will be no detrimental i
Slide 39: Summary of Key Risks
Summary of Key Risks Mineral Resources and Reserves The Company’s mineral resources and ore reserves estimates are based on a number of assumptions in accordance with Regulatory and government risks the JORC Code. There can be no assurance that the Company’s mineral resources and ore reserves will b
Slide 40: Summary of Key Risks
Summary of Key Risks Operations risk Safety In the event the Company commences operations at the Great White Project, the Company’s assets Safety is of critical importance in the planning, organisation and execution of the Company’s exploration and operational and mining operations and its ability t
Slide 41: Andromeda: The Great White Mineral Company
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