Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Investor Presentation (June 2024)
33 slides from Andromeda Metals's investor presentation, Jun 28, 2024
Slide 1: Andromeda: The Great White Mineral Company Investor Presentation
Andromeda For personal use only The Great White Mineral Company Investor Presentation June 2024 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: Disclaimer and Qualifications
Disclaimer and Qualifications Readers are cautioned against placing undue reliance on forward-looking statements. These forward-looking This presentation contains summary information about Andromeda, and its activities current only at the date statements are not guarantees of future performance and
Slide 3: Mineral Resources and Ore Reserve Estimates
Mineral Resources and Ore Reserve Estimates Third party data from consultants and government agencies Information that relates to Ore Reserve Estimate has been previously announced to ASX on 6 April 2022, "Great White Kaolin Project –Definitive Feasibility Study and Updated Ore Reserve. Andromeda co
Slide 4: Section A: Executive Summary
For personal use only Section A: Executive Summary 4
Slide 5: Andromeda Metals
Andromeda Metals Australia’s next leading industrial minerals products company Who is Andromeda? • Andromeda Metals (Andromeda, the Company) is an ASX-listed (ADN) pre-development industrial minerals company. • We are developing The Great White Project (TGPW, the Project) on the Eyre Peninsula in So
Slide 6: Investment Thesis
Investment Thesis De-risked, high-grade asset • The Great White Project (TGWP): 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 achieva
Slide 7: Section B: Opportunity Overview
For personal use only Section B: Opportunity Overview 7
Slide 8: Corporate overview
Corporate overview Experienced Board & executive team to execute Andromeda’s strategy Andromeda Metals Limited (ASX:ADN) Board of Directors $0.05 $0.04 For personal use only $0.03 $0.02 $0.01 Mick Wilkes Bob Katsiouleris Austen Perrin Sue-Ann Higgins Independent Non- CEO & Managing Non-Executive Non
Slide 9: 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 28-year mine life From Stage 2, Project will generate $140m Stage 2 120,000 wmt pa ✓ Simple mining with low strip
Slide 10: Offtake profile
Offtake profile Agreements for Andromeda’s premium ceramic kaolins • Contracted volumes5 plus non-binding Heads of Agreement, including Traxys6 which is at an advanced stage for conversion to a binding contract • Andromeda products pricing within the high-quality price range7 Ongoing contract volume
Slide 11: Targeting Premium Markets
Targeting Premium Markets Offtakes geared towards high-quality/price kaolin import markets Target markets Target segments Key metrics • Spain #1 importer of kaolin1; #5 ceramic tile producer2; #2 exporter of ceramic tiles3 Europe High-end • Italy #4 importer of kaolin1; #7 ceramic tile producer2; #4
Slide 12: Section C: Global kaolin market & Andromeda's products
For personal use only Section C: Global kaolin market & Andromeda’s products 12
Slide 13: 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 14: 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 Affecting all major production regions (Europe, China, USA) 2 Depletion of high-quality sources of supply May 2
Slide 15: 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 16: 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 17: 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 18: Product in Development – Zircon Displacement
Product in Development – Zircon Displacement ~25% margin uplift at zero incremental capex cost Zircon displacement with Great White CRMTM Mechanics and Price Drivers Leveraging the high whiteness of CRMTM to reduce high-cost zircon use as a How it works whitening agent in ceramic tiles and slabs Add
Slide 19: Product in Development – Concrete Decarbonisation
Product in Development – Concrete Decarbonisation ~50% margin uplift at zero incremental capex cost Concrete Decarbonisation with Great White HRMTM Mechanics and Price Drivers A kaolin concrete additive that will deliver cost-effective concrete How it works decarbonisation • Value in use and pricing
Slide 20: Product in Development – HPA
Product in Development – HPA HPA with Andromeda’s high-quality kaolin Progress with HPA1 • Great White kaolin ideally suited to make High-Purity Alumina (HPA): o Test work carried out by external consultants confirmed that kaolin from TGWP is Successfully achieved refined 4N HPA at laboratory scale
Slide 21: Section D: Delivering the Great White Project
For personal use only Section D: Delivering the Great White Project 21
Slide 22: The Great White Project: Defined, de-risked & deliverable
The Great White Project Defined, de-risked & deliverable Building blocks are in place to deliver the TGWP Key Foundations First Stage Execution First Stage Operations For personal use only Mining & Environmental Stage 1A+ 2024 Bankable Approvals Granted Feasibility Study Finalised Mining contractor
Slide 23: 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 TGWP and the development
Slide 24: 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+ incorporates majority of sit
Slide 25: 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 26: Stage 1A+ operations
Stage 1A+ operations Low risk mining and processing Mining * • Ore body is shallow with a low strip ratio. Mining will, typically, be a free dig operation (60 tonne excavator) • Mined ore will be allocated into three quality graded ROM stockpiles for each product - high, medium and low – blended int
Slide 27: Logistics
Logistics Optionality and opportunities TGWP 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 Whyalla • As production expands, increm
Slide 28: Resource Profile
Resource Profile Commercial optionality & potential upside value Andromeda Metals: regional high-quality kaolin resources profile Halloysite ISO B Al2O3 Fe2O3 TiO2 KAOLIN Tonnes -45 µm (%) (%) (%) (%) DEPOSIT (Mt) (%) (%) For personal use only in -45 µm fraction Great White1 34.6 50.2 83.2 36.5 0.51
Slide 29: Focused on safe and sustainable operations
Focused on safe and sustainable operations With the aim of being 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 s
Slide 30: Section E: Project economics
For personal use only Section E: Project economics 30
Slide 31: 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 32: Project economics: LOM progressive cashflow
Project economics LOM progressive cashflow Rapid payback followed by 22 years of $140m 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) (1,500)
Slide 33: 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