Andromeda Metals Ltd (ASX: ADN) 4N HPA Breakthrough Sparks Share Price Surge to 52-Week High, Unlocking New Growth Opportunities

May 1, 2025 | ACB News — Reporter: Anna

ASX-listed kaolin developer Andromeda Metals Ltd (ASX: ADN) today announced a major technical breakthrough in its High-Purity Alumina (HPA) development efforts. The company has successfully produced 4N-grade (99.9985% purity) HPA at laboratory scale, using a proprietary process based on refined kaolin from its flagship Great White Project in South Australia.

The novel process, developed in-house by Andromeda, eliminates the need for traditional high-cost aluminium feedstocks and avoids high-temperature, high-pressure acid re-crystallisation steps. The company estimates up to 68% lower carbon emissions compared to conventional methods, with significantly reduced energy and capital costs.

HPA samples were independently tested by EAG Eurofins in the U.S. and CSIRO in Australia, confirming 4N-level purity, well above the 3N (99.9%) commercial benchmark. HPA is a critical input for LED, semiconductor, ceramic, and lithium-ion battery technologies. Market forecasts anticipate global HPA demand to outpace supply by 45% by 2028, driving strong pricing momentum.

Market Responds Sharply: Share Price Hits 52-Week High

Investors have responded enthusiastically to the announcement. By 10:48 am AEST, Andromeda’s share price surged 92.86% to $0.027, with trading volume exceeding 47.58 million shares, totalling nearly A$1 million in turnover. The stock has more than doubled this week on surging volume, with intraday prices hitting a 52-week high—a strong indication of growing investor appetite for Andromeda’s technological advancement and future valuation upside.

Strategic Context: HPA Adds Value to Great White Ahead of Final Investment Decision

Last week, ACB News reported that Andromeda is approaching a Final Investment Decision (FID) for its Great White Project, currently in advanced discussions with key engineering partners and financiers. The South Australian government has designated Great White a strategic critical minerals project.

While Andromeda remains focused on commercialising its premium kaolin products in the near term, this HPA breakthrough significantly expands the project’s long-term value proposition. The HPA process leverages Great White’s ultra-pure kaolin feedstock, strengthening Andromeda’s potential entry into high-value downstream materials.

Acting CEO Sarah Clarke commented:

"We’re delighted to confirm that our internally developed process can transform Great White kaolin into ultra-high-purity HPA. This positions us strongly for future participation in the energy transition and advanced materials supply chains."

The company will now advance to a Scoping Study for its HPA pathway and engage with potential offtake partners and government funding programs to accelerate commercialisation.