Andromeda Metals has released the results of an updated Definitive Feasibility Study (2023 DFS) for its Great White Deposit, following the conclusion of a commercial strategy review.
According to the company, the Great White Project is construction ready, with the required permits in place.
The study found that the project’s Net Present Value (NPV) increased by 65 per cent to $1,010 million, and average annual earnings before interest tax depreciation and amortisation increased by 59 per cent to $130 million.
The increased NPV compared to the 2022 DFS, primarily results from:
- Strengthened global prices driven by geopolitical risk and global and regional supply shortages
- Enhanced product mix and partner portfolio
- Established high value in use of Andromeda products in key market segments
- An updated mine development plan (based on the Mine to Market response) that supports an accelerated sales profile and reduced costs across the life of mine
- Improved weighted average product margin by 34 per cent to $450/t of product
The commercial strategy review confirmed The Great White Project’s kaolin core product portfolio and identified a value in use that is above market in established and growing segments for high quality ceramic tiles and porcelain tableware.
Andromeda’s complementary product portfolio was defined as Great White HRM™ and industrial sand co-products.
In addition to the current established use of this product as a rheology modifier, the global market for low-carbon concrete production has been identified as a further opportunity to be commercialised.
Industrial sand co-products (not commercialised in the 2022 DFS) will be sold to meet the regional shortfall in the construction and infrastructure markets.
Subject to additional funding, the commercial strategy review identified an opportunity for High Purity Alumina (HPA) to become part of Andromeda’s complementary product portfolio. Technical and market validation is proposed to restart, after the project’s commissioning.
It is estimated $8-10 million will be required to complete a prefeasibility study on HPA, the commercialisation of which is not included in the 2023 DFS.
Andromeda said it is focused on the sustainable development of its future operations, through a low-impact approach to mining and processing over the life of the Great White Project, and effective, ongoing, and transparent consultation across all stakeholders, including First Nations people and the local community.
Andromeda Metals’s CEO and Managing Director, Bob Katsiouleris, said that the 2023 DFS represents the outcome of a rigorous commercial and business strategy review for commercialising our construction ready project, to meet rising market demand.
“As we move to finalising debt funding, the 2023 DFS will underpin our funding strategy for the remaining capital required to move towards anticipated construction and into production.”
