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Highlights

  • Andromeda Metals’ Scoping Study shows potential for 10,000 tpa High Purity Alumina production from Great White kaolin.

  • The Project estimates a Net Present Value of AUD 1.48 billion pre-tax and AUD 1.01 billion post-tax.

  • Pre-production capital costs are estimated at AUD 155 million, with an operating margin of 85%.

Andromeda Metals Limited (ASX: ADN) has released the outcomes of its Scoping Study into the production of High Purity Alumina (HPA) from the company’s Great White kaolin project in South Australia. HPA is recognised as a Critical Mineral in Australia, the United States, and Europe due to its growing application in advanced technologies, particularly in the energy transition sector.

The Scoping Study provides a preliminary technical and economic assessment of developing an HPA facility, positioning Andromeda to advance the project toward development.

Project Economics

The proposed HPA Processing Facility is designed to produce 10,000 tonnes per annum (tpa) of 4N HPA, utilising approximately 30,000 tpa of Great White Project kaolin as feedstock.

Key financial metrics from the study include a Net Present Value (NPV10) of AUD 1.48 billion pre-tax and AUD 1.01 billion post-tax. The Internal Rate of Return (IRR) is calculated at 88% pre-tax and 69% post-tax.

The estimated pre-production capital cost stands at AUD 155 million, inclusive of a 30% contingency. Capital intensity is estimated at AUD 15,459 per tonne of HPA capacity, which the company reports as below other comparable projects.

Operating costs are projected at AUD 4,718 per tonne, resulting in a cash operating margin of AUD 26,532 per tonne based on a conservative HPA sales price assumption of AUD 31,250 per tonne.

The Project anticipates average annual EBITDA of approximately AUD 247 million over a 24-year life, with a payback period of 3.2 years.

Market Dynamics

Global HPA demand is forecast to grow at a compound annual rate of 20%, with an estimated supply shortfall of more than 78,000 tonnes by 2030. This shortfall equates to over 120% of current global production capacity.

The study highlights Andromeda’s potential to provide cost-effective and environmentally competitive HPA. Process modelling indicates emissions of 6.47 tonnes of carbon dioxide per tonne of HPA, which is 48% lower than the reported levels for the traditional aluminium alkoxide process.

Feedstock and Project Life

Kaolin feedstock will be sourced through an arms-length offtake agreement from Andromeda’s 100% owned Great White Project. The deposit is supported by an Ore Reserve of 15.1 million tonnes.

The Scoping Study outlines a project life of 24 years.

Next Steps

Based on the favourable outcomes of the Scoping Study, Andromeda has determined that the HPA Project warrants further progression. Work will focus on advancing towards the next stages of feasibility and development.

Shares of Andromeda Metals traded 20% higher at AUD 0.024 per share during the session on 18 September 2025.