- Andromeda Metals (ADN) completes definitive feasibility study (DFS) for its Great White kaolin project in South Australia
- Results from the DFS include high margin cashflows, with pre-tax net present value of $613 million, with an internal rate of return of 36 per cent
- Great White has a mine life of 28 years and is proposed in four production stages, with an an initial capital cost of $93.8 million
- The payback period is 5.9 years, which includes stage two upgrade and stage three plant expansion capital expenditure to reach 600,000 tonnes per annum processing capacity
- On the market, ADN drops 34.3 per cent and trading at 11.5 cents
Andromeda Metals (ADN) has completed a definitive feasibility study (DFS) for its Great White kaolin project in South Australia which the company says confirms its status as a globally significant deposit.
Results from the DFS include high margin cashflows, with pre-tax net present value of $613 million, with an internal rate of return of 36 per cent.
Great White has a mine life of 28 years, with an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of $81.5 million, and total EBITDA of $2.28 billion.
The project is proposed in four production stages, with an initial capital cost of $93.8 million. The total cost is $233 million.
The payback period is 5.9 years, which includes stage two upgrade and stage three plant expansion capital expenditure to reach 600,000 tonne per annum processing capacity.
“The DFS confirms the project as a globally significant supplier of high value kaolin to international ceramic, paint and other specialised markets,” Managing Director James Marsh said.
“The completion of this stage in the development of the Great White kaolin project further advances Andromeda as a fast-growing South Australian company with a vision to lead the world in the sustainable supply of superior quality industrial minerals and advancement of nanotechnologies.”
Over the next six months, Andromeda will continue to focus on marketing, securing additional binding offtake agreements, secondary approvals and financing.
On the market, ADN dropped 34.3 per cent and was trading at 11.5 cents at 1:01 pm AEST.