Key Highlights

  • Continuous pilot plant production of HPA reached 99.9986% purity, above the 99.99% 4N specification.
  • A non-binding Heads of Agreement with Traxys North America targets 2,000 tonnes a year of HPA into the United States, equal to about US$40 million annually at indicative pricing.
  • The Share Purchase Plan and placement raised $3.04 million, lifting quarter end cash to $4,302k.
  • Equity still required to reach a final decision on Stage 1A+ of the Great White Project is about $40 million, alongside a credit-approved $75 million debt facility.

Andromeda Metals Limited (ASX:ADN) reported a quarter centred on its high purity alumina project, with continuous pilot production of HPA reaching a confirmed purity of 99.9986%, above the 99.99% 4N specification. The company signed a non-binding Heads of Agreement with Traxys North America for potential HPA supply into the United States and completed a $3.04 million capital raising before costs. Cash at 30 September 2026 was $4,302k, up $1,106k from $3,196k at the end of June.

HPA Pilot Plant Reaches 4N Plus Purity

Commissioning of the HPA pilot plant was completed during the quarter and an optimisation and testwork program began. The plant produced HPA at continuous pilot scale from Great White kaolin, and independent analysis by EAG Eurofins confirmed purity of 99.9986%, a step up from earlier laboratory production. The program is designed to scale up the continuous flowsheet, produce commercial samples for customer evaluation and generate co-product material, including amorphous silica and gallium, for further assessment. Samples for customer evaluation are planned over the fourth quarter of 2026.

Data on process performance, reagent consumption, recoveries and scale-up assumptions is being collected to support a Pre-Feasibility Study, and planning for that study has commenced following the capital raising. The company also moved its HPA patent application from the international Patent Co-operation Treaty phase into national phase, and after quarter end the Republic of South Africa granted the first patent covering the process to produce HPA or smelter-grade alumina.

Traxys Agreement and the Great White Project

The Heads of Agreement with Traxys North America sets out a framework for negotiating a five-year sales agency agreement with an indicative volume of 2,000 tonnes of HPA a year into the United States. At indicative pricing of US$20,000 per tonne, that equates to annual sales of about US$40 million, with final pricing to be set by market conditions at the time of industrial production. Traxys has been appointed under the US Government's Project Vault initiative to support critical minerals procurement.

At the Great White Project, Early Works are complete and transport of key long lead equipment was finished after the last components of the Filter Press arrived in Australia and were placed in secure storage. With Early Works done, the balance of equity needed to reach a final decision on Stage 1A+ is estimated at about $40 million, in addition to the credit-approved $75 million debt facility with Merricks Capital, whose binding agreement remains subject to finalisation of the remaining funding. The company said discussions with a number of strategic counterparties about funding, strategic and corporate options continued and remain confidential.

Capital Raising and Cash Movements

The Share Purchase Plan drew 342 participating shareholders and raised $3,044,576 before costs at an issue price of $0.0059, made up of $2.94 million through the plan and $102,000 through a placement at the same price. Net cash used in operating activities was $1,358k, outflows for non-operating activities were $436k, and financing activities provided $2,900k. Exploration and evaluation expenditure was $503k, and payments to related parties were $33k. Directors continued cost saving measures, including one director forgoing fees until the Great White Project is fully financed. Keith Pollocks, who has more than 30 years of senior finance experience, was appointed Chief Financial Officer.

Where the Quarter Leaves Andromeda

The September 2026 quarter produced 99.9986% HPA at pilot scale, a non-binding US supply framework, a first granted patent, a $3.04 million raising and a cash balance of $4,302k, with 498,741,943 shares issued under the plan on 7 September and 17,288,138 under the placement on 4 September. The Great White Project stays development-ready with a $40 million equity balance and a $75 million debt facility credit approved.