Andromeda Metals Ltd (ASX: ADN) is in the news today, thanks to the Andromeda share price plummeting 7.4% to 25 cents in early trade today.
However, that bearish momentum did not last, and the share price has since recovered ground. On close of trade today, the Andromeda share price had recovered to 27 cents per share, down 1.82%.
Andromeda shares are now down 12.9% year to date and more than 25% off of the company's 52-week high of 36 cents a share that we saw back in December. However, they are also up a stunning 440% since early September last year.
So what's going on with this company?
Image source: Getty Images
Andromeda makes an announcement
Andromeda Metals is an industrial minerals producer, whose crown jewel is its Great White halloysite-kaolin mine, which is not yet operational. Halloysite and kaolin are components in the manufacturing of porcelain.
Today's share price moves can likely be put down to the quarterly report (for the quarter ending 31 December 2020) that Andromeda released to the market this morning.
In the report, Andromeda told investors that the company had completed an updated 'mineral resource estimate' for its Great White site. This update estimates that Great White holds 34.6 million tonnes of 'bright white' kaolin ore, a 33% increase on previous estimates.
Further, the company also revealed that testing of kaolin form Great White has "delivered exceptional ISO brightness results, superior to current market leading products, making this material ideally suited to the high-value coatings and polymer markets".
In other news, Andromeda also told investors that Evolution Mining Ltd (ASX: EVN) has "formally withdrawn" from the Drummond Epithermal Gold joint venture, meaning Andromeda reverts to full ownership.
The company also announced that it has encountered a "significant gold intercept" of between 3.06 and 5.35 grams per tonne at hits Eye Peninsula joint venture project with Cobra Resources. Apparently, "Cobra is now analysing the results of the full drilling program".
Finally, Andromeda reported that the company's cash on hand is now at $7.938 million after raising $5.7 million over the quarter. This was mostly enabled by the completion of Andromeda's options issuance, of which a reported 99.8% of eligible shareholders participated in.
It's unclear which of these announcements weren't up to investor expectations today, seeing as this report has prompted a share price drop. Perhaps investors were simply expecting more out of one or more of Andromeda's mining projects.
