Funding Pressure Eases as Andromeda Secures $2.34M R&D Tax Incentive Refund
Andromeda Metals has secured a $2.34 million R&D tax refund for the 2024 financial year, reinforcing its funding strategy and underpinning development of the Great White Project.
- Received $2.34 million R&D tax refund from Australian Government
- Eligible R&D expenditure of $5.4 million reported for FY2024
- Advance Finding certificate secures refundable tax offsets at 43.5% over three years
- Stage 1A+ of Great White Project R&D expenditure expected to total $26 million
- Refund supports ongoing funding efforts and innovation initiatives
Andromeda Metals Secures Significant R&D Tax Refund
Andromeda Metals Limited (ASX: ADN) has announced receipt of a $2.34 million Research and Development (R&D) tax incentive refund following the lodgement of its 2024 financial year tax return. This refund stems from $5.4 million in eligible R&D expenditure, marking a substantial cash inflow that bolsters the company’s financial position.
The refund is a direct result of an Advance and Overseas Finding Certificate awarded by AusIndustry, part of the Australian Government, which validates Andromeda’s R&D activities related to scaling up product and process development under Stage 1A+ of its flagship Great White Project. This binding Advance Finding ensures refundable tax offsets at a rate of 43.5% on eligible expenses over the next three financial years.
Strategic Impact on Funding and Innovation
Acting CEO Sarah Clarke highlighted the importance of this refund, describing it as a “valued contribution” that supports Andromeda’s innovation efforts and funding strategy. The cash rebate effectively returns close to half of the eligible R&D spend, providing a meaningful boost to the company’s liquidity as it advances its mineral exploration and development activities.
With Stage 1A+ R&D expenditures projected to reach approximately $26 million, the Advance Finding sets a clear framework for ongoing claims, subject to maintaining turnover below $20 million to retain refundable status. This financial mechanism not only incentivizes continued innovation but also mitigates some of the capital intensity inherent in mining exploration projects.
Looking Ahead: Funding and Project Development
The timing of this refund aligns with Andromeda’s current funding process, potentially easing capital constraints and enabling sustained progress on the Great White Project. The project itself remains a central pillar of the company’s growth ambitions, with R&D activities focused on scaling up technologies and processes that could enhance future production efficiency and cost-effectiveness.
Investors will be watching closely how Andromeda leverages this financial support alongside other funding avenues to maintain momentum. The company’s ability to continue claiming refundable tax offsets over the coming years will be a key factor in its financial planning and operational execution.
Bottom Line?
Andromeda’s R&D tax refund not only strengthens its balance sheet but also signals confidence in the Great White Project’s innovative potential.
Questions in the middle?
- Will Andromeda maintain turnover below $20 million to preserve refundable tax offset status?
- How will the company’s ongoing funding process integrate this refund to accelerate project milestones?
- What are the risks if government R&D tax incentive policies change in the coming years?
