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Andromeda Metals has released the results of an updated definitive feasibility study (DFS) for its Great White halloysite kaolin project.

The Great White project (GWP) is located in South Australia. It produces kaolin, a clay-type material composed of minerals of the kaolin group and is used in ceramics, coated medicine and cosmetics, to name a few.

According to the GWP’s 2023 DFS, the project’s net present value (NPV) has increased by 65 per cent to $1 billion, its average annual earnings before interest tax depreciation and amortisation (EBITDA) has increased by 59 per cent to $130 million, and its revenue has increased by 32 per cent to $6.2 billion.

Andromeda said the increased NPV in 2023 compared to the 2022 DFS is due to:

  • 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 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 per product tonne

“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,” Andromeda Metals chief executive officer Bob Katsiouleris said.

“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.”

Andromeda also plans to distribute its kaolin products to IberoClaysPlantan YamadaFoshan Gaoming.