Winners and Losers: Andromeda ramps up kaolin mining project
The week’s biggest Loser slid after raising $5 million at a discount as it prepares to progress a major South Australian mining project.
Andromeda shares fell by 29.41 per cent in the week after the company raised $5 million at a 23.5 per cent discount to the company’s previous closing price.
The company – technically the week’s biggest Loser – raised $5 million from institutional and sophisticated investors at $0.013 per new share.
Funds will be used to progress early works, advanced plant design and technical, financial and legal activities for its South Australian ‘Great White’ mining project.
The Tier 1 asset has all key approvals in place to commence construction of infrastructure for its kaolin mining project which is expected to have a lifespan of 28 years.
The company hopes to be able to generate 3330,000 tonnes per annum of refined kaolin products.
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Earlier this year, the company announced a “breakthrough” in its plans to commercialise the production of the critical mineral high purity alumina.
Andromeda said 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.
Last week, Andromeda CEO Sarah Clarke said the interest in the placement demonstrated “strong investor confidence in Andromeda’s future”.
There was no major news from the week’s Winner, Barton Gold, which surged 28 per cent higher as investor support for gold stocks remained strong.
Similarly, there was little news from Vintage Energy, which rose by 25 per cent alongside a 5 per cent rally in Brent crude prices broadly which helped the oil stocks move higher for the week (Santos was also up by 6 per cent).
Markets in Australia continued on an upward streak, with the S&P500 still on a tear, having rallied more than 22 per cent in just 28 days from their early April lows as tariff fears recede.
The full list of Winners and Losers for the week ended 16 May 2025:
Data compiled by Baker Young Limited analysts.
