Andromeda Metals (ASX:ADN) share price climbs 18%

The Andromeda Metals share price shot higher today, 4 days after the company released a number of announcements.

| More on:
surging asx share price represented by piggy bank with rocket attached to it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Today the Andromeda Metals Ltd (ASX: ADN) share price climbed 18.75% to 19 cents before dropping back to close at 18 cents per share. This gain comes 4 days after the company released a number of announcements to the market.

What did Andromeda Metals announce recently?

During the quarter ended 30 September, the Great White Kaolin joint venture in which Andromeda Metals has a 75% interest revealed the following:

  • Maiden reserve of 12.5 million tonnes of kaolinized granite classified as a probable reserve, comprising 15% halloysite and 78% kaolinite.
  • Assay results from aircore drilling revealed an extensive area of kaolin consisting of 2.4 kms by 0.5  kms. 
  • An inferred resource of 51.5 million tonnes of kaolinized granite

Elsewhere, at the company's Mount Hope kaolin project, a new inferred resource of 18 million tonnes of kaolinised granite was estimated during the last quarter.

Drilling of the Andromeda Metals Drummond Epithermal gold joint venture commenced in late September by Evolution Mining Ltd (ASX: EVN), with results pending.

At the company's Eyre Peninsula gold joint venture, an RC drilling program of up to 6,750 metres recently commenced across a number of targets. 

Additional updates from the most recent quarter September included:

  • The company spent $1.22 million on exploration and evaluation
  • Andromeda Metals received cash of $2.03 million from the exercise of options 
  • Cash on hand was $3.66 million at 30 September 2020

Andromeda Metals also announced that it had appointed financial services firm Taylor Collison to advise it on mergers and acquisitions along with equity capital markets transactions. 

About the Andromeda Metals share price

Andromeda Metals is a minerals exploration company with a focus on halloysite-kaolin, gold and copper. The company has assets in South Australia, Western Australia and Queensland. Andromeda Metals has been listed on the ASX since 1996.

Andromeda Metals shares are up 873.68 % since their 52-week low of 1.9 cents and up 270% since the beginning of the year. The Andromeda Metals share price is up 362.5% since this time last year.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why did the Fortescue share price fall 7% in October?

Let's review what happened with the ASX 200 mining giant in October.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Why did the BHP share price get hammered in October?

ASX 200 investors sent BHP shares sharply lower in October. But why?

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Gina Rinehart's empire raked in another $5.6 billion. Here's how

Resources and mining continue to dominate the Australian market.

Read more »

two men in business suits sit across from each other at a table with a chess board on it. Both hold their hands to their chins and look down in serious contemplation of their next move.
Resources Shares

'Not ruled out': Could BHP still buy Anglo-American?

This mega-deal might not be as dead as it looks.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Miner looking at a tablet.
Resources Shares

Here are the latest share price forecasts for Fortescue

Let’s unearth what analysts think could happen with this iron ore miner.

Read more »

A businesswoman ponders why her boat is sinking in the ocean.
Resources Shares

Lake Resources share price sinks on quarterly cash flow news

Let's take a look at the highlights of the company's Q3 update.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Resources Shares

Why today is a big day for BHP shares

Guess why everyone’s talking about BHP shares today.

Read more »