Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Shareholder Meeting (November 2019)
21 slides from Andromeda Metals's shareholder meeting presentation, Nov 28, 2019
Slide 1: Developing a World-Class Halloysite-Kaolin Project
Andromeda For personal use only Developing a World-Class Halloysite-Kaolin Project James Marsh, Managing Director AGM Presentation th November 28 2019 ASX:ADN www.andromet.com.au
Slide 2: Andromeda Corporate Overview
Andromeda Corporate Overview For personal use only Capital Structure (as at 27th November 2019) Cash Reserves of $4.93M Zero Debt Enterprise Value $76.0M Shareholder Breakdown Andromeda Metals has on issue the following securities: • 1,444,507,511 fully paid ordinary shares • 700,626,653 list option
Slide 3: Company Overview
Company Overview For personal use only Our Vision To be a world leading producer of halloysite kaolin, and specialist nanotube technology company • Exploration and development company with a portfolio of assets in key minerals regions of SA, QLD and WA • Focused on development of the Poochera core a
Slide 4: Poochera – World Class Opportunity
Poochera –World Class Opportunity For personal use only Primary Project Focus - Halloysite-Kaolin Project JV with Minotaur Exploration ▪ Project hosts one of the world’s largest halloysite-kaolin Resources(1) ▪ Located close to essential infrastructure ▪ Very positive Scoping Study reinforces the vi
Slide 5: Defined Resource
Defined Resource For personal use only JORC 2012 Resource Estimate for Carey’s Well ▪ Total 20Mt of “bright white” kaolinised granite ▪ Halloysite component of 9.7Mt(1) Exploration ▪ Drilling campaign recently completed ▪ Extensive drilling campaign planned for Dec 2019 ▪ Exploration targets indicat
Slide 6: What is Halloysite-Kaolin?
Typical Kaolin with Plate- Like Structure What is Halloysite-Kaolin? (Al2O3 2SiO2.2H2O) For personal use only • Halloysite is a rare ‘tubular shaped’ derivative of kaolin The Poochera resource is a naturally occurring hybrid blend of halloysite and kaolin Halloysite Kaolin Hybrid Pure Halloysite wit
Slide 7: Where is Halloysite-Kaolin Used?
Where is Halloysite-Kaolin Used? For personal use only Mature Established Markets ▪ Ceramics - for high-quality porcelain ▪ Catalysts - for Fluid Catalytic Cracking (FCC) New and Emerging Markets ▪ High Purity Alumina production (HPA) - New ▪ Halloysite Nanotube Technologies – Existing and Emerging
Slide 8: Scoping Study Highlights
Scoping Study Highlights For personal use only • Initial mine life of 15 years at 500ktpa One of our five assets has a A$413 NPV • Early shallow open-cut mining to ship DSO for toll wet-refining in China • Dry-processing on site during the second year of operation to give a ‘Concentrate’ • LOM proje
Slide 9: The Path Forward
The Path Forward For personal use only • Scoping Study Released – Sep 2019 • Halloysite Purification Testing – Dec 2019 • Resource Upgrade – Dec 2019 • Exploration Access Camel Lake – Dec 2019 • Poochera Drilling Program – Dec 2019 • Environmental and Feasibility Studies - to mid 2020 • Land Access
Slide 10: Operational Strategy
Operational Strategy For personal use only Opportunities Short Term – early cash flow ▪ Direct Shipping Ore to Toll Wet-Refining ▪ Wet Refining Toll Process (China/Japan) – premium product Medium Term – 18 months from start of operations ▪ Dry or Wet Process at Mine Site – 50 to 60% waste reduction
Slide 11: Dry-Processing Option
Dry-Processing Option For personal use only ▪ Dry-processing to remove 50% waste (sand) and about 10% moisture ▪ Transport cost reduced by about 60% ▪ Potential to give market ready products (Offtakes signed for dry-processed )
Slide 12: Marketing Strategy
Marketing Strategy For personal use only Short Term – Halloysite-Kaolin ▪ Convert Offtake LOI’s to Binding Agreements ▪ Target Additional Regions – Asia/Europe/Middle East ▪ Target Additional Sectors – Catalysts/Remediation/Calcined Medium Term ▪ Offtake LOI’s for High-Purity Halloysite ▪ Industrial
Slide 13: Existing Infrastructure
Existing Infrastructure For personal use only ▪ Adjacent to Streaky Bay, SA ▪ Local potential workforce ▪ Ports at Lucky Bay, Ceduna, Port Lincoln and Whyalla have capacity and offer suitable shipping options ▪ Ceduna currently shipping industrial minerals in bulk
Slide 14: High Purity Halloysite a Potential Game Changer
High Purity Halloysite a Potential Game Changer For personal use only • Over 7,000 current research papers • 70 new patents granted last year alone • No significant commercial supply globally • ADN has high-purity halloysite – resources to be determined Emerging Applications: ➢ Hydrogen Storage and
Slide 15: Halloysite Exploration Plans
Halloysite Exploration Plans For personal use only Extensive drilling campaign carried out at Poochera in Apr/May 2019 • Resource upgrade results imminent • High purity halloysite regions confirmed What’s next • Poochera – Further resource extension, high-purity halloysite areas and geotechnical dri
Slide 16: Poochera Drilling Apr/May 2019
Poochera Drilling Apr/May 2019 For personal use only • April/May 2019 drilling program totaled 109 holes for 3,265 metres Prospect/Deposit Location Drillholes Total Completed Metres Carey’s Well 20kms southwest of Poochera 95 2,736m Condooringie 4kms north of Carey’s Well Deposit 5 234m Tomney East
Slide 17: Poochera Exploration
Poochera Exploration For personal use only • Further extension to Carey’s Well resource Poochera Project Exploration targets indicate 570 – 810 million tonnes • Sterilisation drilling at Carey’s Well • Mine planning drilling at Carey’s Well • Condooringie Well drilling – high purity halloysite targe
Slide 18: Camel Lake Exploration
Camel Lake Exploration For personal use only Potential Drilling Targets High Purity Halloysite Just Below Surface • Halloysite found at 99.6% purity just below surface • Samples show extremely high shape consistency • Samples show ideal shape for new nano-technology Extremely Consistent Size and Sha
Slide 19: Mount Hope Exploration
Mount Hope Exploration For personal use only • 100% owned • Historical non JORC Resource of 12.26Mt • Nine historic mining leases granted • Sample pit dug • Only 80km from Port Lincoln
Slide 20: In Summary
In Summary For personal use only ▪ South Australia has one of the world’s largest resources of halloysite-kaolin ▪ This is a relatively high value industrial mineral ▪ Global demand is increasing*and production is decreasing ▪ Right product, at the right time, in the right place ▪ Andromeda is well
Slide 21: Cautionary Statements
Cautionary Statements The Scoping Study referred to in this announcement has been undertaken to determine the potential viability of a direct shipping and dry-processing operation to produce high-quality halloysite-kaolin product at Poochera in South Australia that will provide Andromeda Metals with
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