Key Highlights

  • Continuous pilot production of 4N+ HPA achieved with confirmed purity of 99.9986%, exceeding the 4N 99.99% industry specification
  • Non-binding Heads of Agreement signed with Traxys North America to advance a potential HPA Supply pathway into the United States
  • $3.04 million raised before costs through a Share Purchase Plan and share placement, with Keith Pollocks appointed as CFO
  • South Africa Patent granted — the first in a portfolio of national patent applications being pursued globally by the company

Andromeda Reaches a Defining Technical Milestone

Andromeda Metals Limited (ASX:ADN), the ASX-listed critical minerals developer, recorded what may be the most consequential technical achievement in its history during the quarter ended 30 September 2026. Continuous pilot production of High Purity Alumina from Great White kaolin delivered confirmed purity of 99.9986% — a result that exceeds the 4N 99.99% industry specification threshold and places Andromeda's HPA product firmly in the high-value tier of the global alumina market.

The milestone matters because 4N+ HPA commands a significant price premium over lower-purity alumina grades and is the specification required for a growing range of critical technology applications. Hitting this benchmark from a continuous pilot run — rather than a one-off laboratory test — gives the result a credibility that single-batch demonstrations typically lack, and it provides a commercially relevant proof point as the company progresses toward production decisions.

Great White Project: Development-Ready and Seeking Strategic Partners

The Great White Project, located in South Australia, completed its pre-construction Early Works program earlier in 2026 and is now described as development-ready. Transportation of key long-lead equipment items — including the last components of a Filter Press — was completed during the quarter, with components now stored in Australia.

Despite this physical readiness, the company continues to pursue a funding and strategic Partnership process before committing to a Final Investment Decision for the Stage 1A+ development. Discussions are ongoing with multiple counterparties regarding funding, strategic, and corporate opportunities. This approach is consistent with the capital-intensive nature of the project and the preference among many junior miners to de-risk construction financing before ground-breaking.

US Market Access: Traxys Agreement Opens a Critical Pathway

The signing of a non-binding Heads of Agreement with Traxys North America represents a potentially material step in Andromeda's commercial development. Traxys is a significant commodities trading and Marketing company with established networks in North American critical materials markets. The agreement is intended to advance a potential pathway for HPA supply into the United States — a market where domestic and allied-nation supply chain Diversification is a policy priority under the US critical minerals strategy.

Access to the US market for battery-grade HPA could substantially expand the addressable market for Great White's production. The non-binding nature of the agreement means no Revenue is guaranteed, but it signals market-level validation of Andromeda's product proposition and opens formal commercial discussions.

IP Portfolio Expands Internationally

The granting of a patent in South Africa during the quarter marks the first national grant in what Andromeda describes as a portfolio of patent applications being pursued across multiple jurisdictions. Patent protection for the company's HPA production process adds a layer of proprietary value to the technology and strengthens Andromeda's negotiating position with potential strategic partners and offtake customers who want confidence in the exclusivity of the production method.

Corporate: Capital Raise and New CFO

Andromeda raised $3.04 million before costs during the quarter through a combination of a Share Purchase Plan and a share placement. The capital strengthens the Balance Sheet ahead of what could be an intensive period of funding discussions and development activity. The concurrent appointment of Keith Pollocks as Chief Financial Officer — with more than 30 years of senior finance Leadership experience — signals the board's intent to professionalise the financial management function ahead of a potential construction financing process.

Risks

Andromeda's investment case rests on its ability to secure project financing for the Great White Project at commercially viable terms. Without a Final Investment Decision, the development-ready status of the project does not translate to production cash flows. The non-binding nature of the Traxys agreement means it can be terminated before converting to a commercial offtake contract. HPA market pricing, while currently favourable, is subject to supply additions from competing producers in China and other jurisdictions.

What to Watch Next

Progress in the strategic partnership funding discussions for Great White will be the central focus. Any binding offtake or supply agreement flowing from the Traxys Heads of Agreement would materially advance the company's commercial position. Additional patent grants across new jurisdictions and any further pilot production data confirming product consistency will also be closely watched.

Sector Context

High Purity Alumina is a critical input for Lithium-Ion Battery separators, LED sapphire substrates, and semiconductor components. Demand is growing alongside electric vehicle adoption and the expansion of the global semiconductor supply chain. Australia's rich kaolin deposits and established Mining regulatory framework position it as a potential significant supplier to allied-nation critical mineral strategies, particularly as the US and EU work to reduce supply chain dependence on Chinese-sourced materials.