Winners and Losers: Andromeda’s sky-high gains as ASX goes ‘beast mode’
Andromeda Metals experienced its highest volume week since 2022 while the Australian share market closed at two-month highs following a sustained rally.
A “breakthrough” in Andromeda Metal’s plans to commercialise the production of the critical mineral high purity alumina (HPA) sent the company’s share price soaring last week.
After announcing the news on Thursday, Andromeda shares jumped 78 per cent to experience its highest volume week since 2022.
The company closed the week up 122.22 per cent, while shares in ADN are up 150 per cent for the month.
Andromeda announced that lab-scale test work was undertaken to produce HPA using a novel process whereby it refines kaolin clay from the Eyre Peninsula.
New independent analysis confirmed Andromeda’s HPA produced above 99.99 per cent purity.
Andromeda said its process would be “significantly more cost-effective and less carbon-intensive than other reported processes”.
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This is important, ADN said, as the drive to produce HPA stems from growing demand for LED lights, semiconductors, wearable tech, lithium-ion batteries and high-tech ceramics.
“Whilst Andromeda’s primary focus remains the development of the Great White Project, the production of HPA is a high-value and complementary opportunity,” Andromeda acting CEO Sarah Clarke said.
“This latest test work validates our novel flowsheet, showing our Great White CRM product from the Great White Project can be used to produce HPA at an impressive 99.9985 per cent purity.
“These outstanding results demonstrate the potential to expand Andromeda’s product portfolio in the future to include a value-added critical mineral.”
Andromeda’s success came during a strong period for the ASX, with the All Ords trading in a near 1000-point range and closing the month 3.5 per cent higher.
Baker Young Limited analysts said Trump Turbulence peaked during the month, but the progressive tariff rollback allowed global markets to recover.
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The Australian share market closed at two-month highs on Friday after a sustained rally.
IG Markets analyst Tony Sycamore said investors had not been expecting such a dramatic performance from the stock market.
“The ASX200 does go into ‘beast mode’ from time to time, and this week it’s done exactly that,” Sycamore said.
“I feel like it’s probably a combination of shorts (sellers) being incinerated now that we are seeing some (tariff) off-ramps coming through from the Chinese and US leaders.”
Papyrus was the biggest Loser of the week, with stocks falling 30 per cent on the day it announced it had signed a contract with UniSA for a new R&D facility.
Though just outside the top five Losers for the week, Mighty Kingdom gets a mention too, with shares sliding after changes in substantial holdings, including the departure of former major shareholder Imagination Entertainment – owned by Adelaide entrepreneur and former CEO of the company Shane Yeend.
The full list of Winners and Losers for the week ended 2 May:
Data via Baker Young Limited analysts.
