Pilot Plant Hits 4N Purity as Andromeda Metals (ASX:ADN) Cuts Its Great White Equity Need to About $40m

Aditi Sarkar

28 October 2026 04:12 PM AEDT

Pilot Plant Hits 4N Purity as Andromeda Metals (ASX:ADN) Cuts Its Great White Equity Need to About $40m

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Highlights

Continuous pilot production of 4N+ high purity alumina reached 99.9986% purity, above the 99.99% specification.
Andromeda signed a non-binding heads of agreement with Traxys North America for a possible five-year sales agency.
Equity needed to reach a final investment decision for Great White Stage 1A+ is now about $40m.
Cash at 30 September 2026 was $4.30m, which the company calculates as about 2.36 quarters of funding.

One result is strong, one number is thin. Continuous pilot production of high purity alumina reached 99.9986% purity, above the 4N specification, yet Andromeda Metals (ASX:ADN) ended the quarter with $4.30m of cash and about 2.36 quarters of funding. Meanwhile, the equity still needed for its Great White kaolin project has fallen to about $40m.

Pilot Plant Purity Result

The quarterly activities report for the period ended 30 September 2026 highlights progress on the company's high purity alumina (HPA) project. Continuous pilot production of 4N+ HPA reached a confirmed purity of 99.9986%, based on independent analysis by EAG Eurofins. The 4N specification is 99.99%.

Most pilot plant milestones are complete, including commissioning and the first HPA samples. Process optimisation is under way, and samples go to customers for evaluation in the fourth quarter of 2026. Planning has begun for a pre-feasibility study, with amorphous silica and gallium being assessed as possible co-products. After the quarter ended, a South African patent covering the HPA process was granted, the first in a planned portfolio of national patents.

The Traxys Heads of Agreement

Andromeda signed a non-binding heads of agreement with Traxys North America. It sets a framework for a possible five-year sales agency agreement targeting 2,000 tonnes a year to the United States. At an indicative US$20,000 a tonne, that equates to about US$40m a year. The figure uses pricing from the 2025 scoping study, before fees and costs, and final pricing will depend on market conditions. Because the agreement is non-binding, it does not represent contracted revenue.

Great White Project Funding

Pre-construction early works at the Great White kaolin project were completed earlier in 2026, and the company describes the project as development-ready. The balance of equity needed to reach a final investment decision for Stage 1A+ is now about $40m. That figure is indicative, subject to change, and excludes possible effects of recent geopolitical events on diesel pricing or availability.

A credit-approved $75m debt facility with Merricks Capital is in place, but final approvals and a binding agreement remain subject to funding for Stage 1A+. The company is in confidential discussions with strategic counterparties about funding, strategic and corporate options, and no outcome has been announced. Filter press components have arrived in Australia, cleared customs and been moved to secure storage, completing transport of the key long-lead equipment.

Cash, Funding and Management

During the quarter Andromeda raised $3,044,576 before costs through a share purchase plan and placement at $0.0059 per share. The plan raised $2.94m and the placement $102,000, with 342 shareholders participating.

Cash at 30 September 2026 was $4.30m, up from $3.20m at 1 July. Operating cash outflow was $1.36m and financing inflow was $2.90m. Quarterly net outgoings were $1.86m against total available funding of $4.39m, including $88,000 of unused facilities, which the company calculates as about 2.36 quarters of funding.

Keith Pollocks was appointed chief financial officer, replacing Pascal Alexander-Bossy, who resigned. Mick Wilkes is waiving director fees until Great White is fully financed, Sue-Ann Higgins has accepted reduced fees, and directors will take some fees as zero-exercise-price options, subject to annual general meeting approval.

Exploration and Next Steps

At the Eyre Kaolin Project, where the company has earned 51%, in-house analysis of the 2025 Chairlift drill samples was postponed. It can earn a further 29%, to reach 80%, by spending $2m on exploration by November 2027.

Near-term milestones are customer sampling of HPA in the fourth quarter of 2026, planning for the pre-feasibility study and resolution of Stage 1A+ funding. The short funding runway and the non-binding Traxys framework are the main open points, and no timing for a final investment decision has been given.

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