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ADN - Andromeda Metals

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ADN raising $45 million through a $30 million institutional placement that has already been completed and a $15 million Share Purchase Plan to eligible shareholders on the same terms as the Placement.

200 million shares (9.25% of the issued capital) were issued in the Placement at 15c per share, resulting in approximately 2,360 million shares on issue after the issuance of the Placement shares. So the upcoming SPP will also be at 15c and will involve the placement of 100 million shares which will take the total shares on issue after the capital raising is complete to 2,460 million shares on issue.

In the Investor Presentation they released yesterday they are very specific about how the funds will be used.


After the SPP completes they will be cashed up and ready to push the Great White Kaolin Project forward.
 
My October 2021 stock pick.

ADN has been on an extended downrun since March - from a high of 45 cents to around 15 cents since it was included in the All Ords index.

A number of announcements are due in the final quarter of 2021 and most likely in October. These include the State Government's decision on the Mining Licence and the Definitive/Bankable Feasibility Study for the Great White Halloysite/Kaolin Project. ADN has lots of irons in the fire and it has endured a few delays and downramping as the project settles. The DFS is only expected to cover the basic business of H-K for ceramics and coatings, leaving some high return and high tech prospects on the backburner for now. Nevertheless, it is looking the goods (IMO) as a profitable producer in the short term with the mine and plant operating at 116,000 t/a by the end of 2021 and doubling that output two years later.
 
A few months ago I almost purchased a few shares in ADN however due to the ever declining share price I did not follow through. In investigating ADN I found another company looking for the similar minerals.
Corella Resources (CR9) are seeking a maiden resource estimate hopefully the same as ADN with some results due any day now, they are currently trading at 4.8cents.
I would be happy if they reached the current ADN price.
Good luck with ADN I am sure they won’t be dwelling in the cellar going forward.
 
Good luck with CR9. By coincidence, my average price for ADN is almost exactly 4.8 cents (spread over about 20 lots purchased since early 2019).
 
Jack Aubrey said:
Good luck with CR9. By coincidence, my average price for ADN is almost exactly 4.8 cents (spread over about 20 lots purchased since early 2019).
Click to expand...
Hmmm that is a bit of coincidence so if the CR9 results are as good as ADN or better hopefully CR9 price follows the trajectory of the ADN and becomes a 10 bagger another coincidence. Time to get out then as another coincidence might see it drop to 15cents.
 
tech/a said:
Placed this one up as a "Trade This Chart " Candidate,

View attachment 131841
Click to expand...
A lift is also indicated by expected ANNs in the near term - Mining Licence and DFS/BFS being the main ones expected this week or next. Could also be further offtakes and news about concrete additive market (possible partnership) as well as debt financing for revised CAPEX. There are still more than 45 Million shorts outstanding (opened since the CR allowed around 70M to cover off market). A "short squeeze" isn't out of the question. Will be watching with interest!
 
The feedstock grade makes little difference. All the kaolin plays are the same. There is minimal resource risk. Results mean bugger all. The cost is in the processing and hence the risk is in the processing cost. Anyone can find some kaolin. Very few can create 4N/5N HPA successfully. Hence the switch to ceramic grade clay and the market realising they won't get $20k a ton of product. This will not peak again IMO.
 
ADN in a Trading Halt pending an announcement regarding a corporate transaction and an update on the Great White Kaolin Project.

and MEP .... also in a T/H ; requested in light of a pending material announcement regarding a possible change of control transaction involving the Company.
 
I've put ADN in for one of my 2022 yearly picks. this stock has been kind to me, even though i did take advantage of the high prices during the year to sell down 90% of my holdings and will look to increase again in moments of a weak price. I feel that as they move forward with getting the plant sorted, the SP should slowly ramp up in the new year.
 
With the DFS announcement the market anticipated for another CR and slammed the price hard to 34% which is lower than the CR was raised only few months back.
IRR of 34% has not attracted the market either
 
charlsie said:
Another drop of 17% today and finished at .095c
Years ago i would've thought this a buy now, as i've learnt through the years, it isn't. hopefully I'm wrong for those still holding
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Yes. There could be more inside story.
Funny enough, yesterday I for a hunch did a trade yesterday a buy and sale giving me $800 without any money excepting two brokerage.
Thankfully I did not get greedy to hold it for today in making $800 loss if sold today.
Some bad signs on ADN
 
It would never happen to me

I have learnt from experience
One of the basic rules at sea is

"Don't catch Falling Knives"
I was lucky once
I only lost a couple of fingers

Thank God
NO THUMBS!!
 
Captain_Chaza said:
It would never happen to me

I have learnt from experience
One of the basic rules at sea is

"Don't catch Falling Knives"
I was lucky once
I only lost a couple of fingers

Thank God
NO THUMBS!!
Click to expand...

Thank goodness I learned well and early from clever people like you at IC back in the day! I never tried to catch one and never will!

Andromeda Metals Ltd (ASX: ADN)The Andromeda Metals share price has continued to sink and is down a further 15% to 9.8 cents. Investors have been selling this kaolin explorer’s shares this week following the release of a bitterly disappointing definitive feasibility study (DFS) for the Great White Kaolin Project in South Australia. Management revealed an internal rate of return (IRR) of 36% and a 5.9 years payback, which compares unfavourably to previous estimates of 175% and 15 months, respectively.
 
plugged the drip? Down to low 6's in June, and up to 10.5c today on this news:

Highlights
  • Andromeda has signed a legally binding offtake Agreement with the Vietnam and Hong Kong based Asia Minerals Resources to supply halloysite-kaolin from the Great White Kaolin Project.
  • The binding Agreement is for up to a total of 38,500 tonnes of Great White KCM™ 90 over the first three years of production at a price in excess of the Definitive Feasibility Study pricing.
  • The Agreement includes sales into the ceramics sector covering Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the UAE.
But there's a whole heap of product out there, from all the aspiring producers.
 
Dona Ferentes said:
plugged the drip? Down to low 6's in June, and up to 10.5c today on this news:
Click to expand...

Interesting thanks for the heads up DF

Approx $330M Market Cap

With $35M in the Bank

This could/should have some legs over the next few months based on that alone (imhho) Its the vibe
 
Captain_Chaza said:
It would never happen to me

I have learnt from experience
One of the basic rules at sea is

"Don't catch Falling Knives"
I was lucky once
I only lost a couple of fingers

Thank God
NO THUMBS!!View attachment 140087
Click to expand...
ADN did it again on Friday. Now 0.07 last traded. SPP was 15 cents.
Why market did not like the strategy to place orders for long lead items ?
Yes, ADN stuffed up earlier on the financials between PFS to DFS.
But now it is getting stable. Not sure why the director resigned (personal reasons) and CEO unloaded stocks at 7 cents (paying off tax dues because got too much money in free options and remuneration)???
Could the off take agreement was not attractive enough after clarification ? DNH
Comments from the chartists, followers and investors please ? @peter2 @Ann @Captain_Chaza @barney @Sean K @debtfree @tech/a


 
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