Slide 1: Andromeda: The Great White Mineral Company – Placement Presentation
Andromeda The Great White Mineral Company Placement Presentation August 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
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 (TGWP, 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
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 $0.035 $0.030 $0.025 $0.020 $0.015 $0.010 Mick Wilkes Luke Anderson Austen Perrin Sue-Ann Higgins Independent Non- CEO Non-Executive Non-Executive $0.005 Execut
Slide 9: The Great White Project: Staged Delivery of a High-Value 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: 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 Traxys Agreement4 Ongoing contracted volumes>> • Traxys is a global trader of industrial minerals. 100,000 Stage 1A+ cumulative nominal • The of
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: Proposed Capital Raise
Proposed Capital Raise Moving The Great White Project towards FID Capital raise for a total of $6.3m (before costs) comprising: Offer • Placement to professional and institutional investors to raise $3.4m Structure • Pro-rata non-renounceable entitlement offer to raise up to $2.9m (1 share for each
Slide 13: Proposed Capital Raise
Proposed Capital Raise Moving The Great White Project towards FID Purpose of Raise Proposed Sources & Uses Sources and Uses for the Raise • Initial stage of the project has been increased to 100ktpa Sources Uses (Stage1A+) based on market demand. Entitlement Offer $ 2,900,000 Detailed Engineering &
Slide 14: Section C: Global kaolin market & Andromeda's products
Section C: Global kaolin market & Andromeda’s products 14
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Section D: Delivering the Great White Project
Section D: Delivering the Great White Project 23
Slide 24: The Great White Project
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 Mining & Environmental Stage 1A+ 2024 Bankable Approvals Granted Feasibility Study Finalised Mining contractor shortlisted 2023 Defin
Slide 25: 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 26: 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 27: Pathway to Stage 1A+ Development
Pathway to Stage 1A+ Development Foundations in place to move towards FID • With the finalisation of the Traxys offtake, the Company now has the required foundations to move towards making a final investment decision (FID) for Stage 1A+. ✓ Fully permitted ✓ Feasibility Studies complete ✓ Offtakes si
Slide 28: 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 29: 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 30: Logistics
Logistics Optionality and opportunities TGWP planned logistics route and expansion alternatives Thevenard 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 incremental volumes provide
Slide 31: 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) (%) (%) in -45 µm fraction Great White1 34.6 50.2 83.2 36.5 0.51 0.45 10.5 Chairlift2
Slide 32: 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 33: Why invest in Andromeda?
Why invest in Andromeda? Defined, de-risked and development-ready Building blocks are in place to deliver the TGWP The Great White Project ✓ Long-Life, High-Quality Resource ✓ Strong Economics ✓ Mining Lease Granted ✓ Project Team & Execution Strategy Ready ✓ Stage 1A Long-lead Items Ordered ✓ Stage
Slide 34: Section E: Project economics
Section E: Project economics 34
Slide 35: 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 36: 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 2,500 200 2,000 150 1,500 100 1,000 $ millions 50 500 - - (50) (500) (100) (1,000) (150) (1,500) 1 2 3 4 5 6 7 8 9 10 1
Slide 37: Section F: Risks
Section F: Risks 37
Slide 38: Summary of Key Risks
Summary of Key Risks In order to bring the Great White Project into development, the Company will need significant funding in addition to The Risks section describes some of the potential risks associated with an investment in the Company. Any that sought under the Offer and Additional Funding, for
Slide 39: Summary of Key Risks
Summary of Key Risks Product development The Company has several products or applications under commercialisation and development, including Great White HRMTM, HPA and zircon displacement applications. It is noted that the funding for the development of the Great White Mine Development and Operation
Slide 40: 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 41: 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 42: 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 43: Andromeda: The Great White Mineral Company
Andromeda 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