Andromeda Metals Confirms Compliance Amidst Divergent Analyst Forecasts

Background to ASX Query

On 17 September 2025, the Australian Securities Exchange (ASX) issued a formal query to Andromeda Metals Limited (ASX, ADN) concerning the company’s handling of a research report commissioned from East Coast Research. The report had been publicly released and was linked to recent trading activity in ADN’s securities, prompting ASX to seek clarity on compliance with continuous disclosure obligations and Listing Rule 15.7.

Andromeda’s Response and Compliance Assurance

In its detailed response dated 19 September 2025, ADN confirmed it provided only publicly available information to East Coast Research and maintained compliance with Listing Rule 15.7 at all times. The company reviewed the report for factual accuracy prior to release but explicitly did not endorse the analyst’s forecasts or opinions, which remain solely those of East Coast Research.

Importantly, ADN clarified that the report was not posted on the ASX Market Announcements Platform (MAP) as a price-sensitive announcement, reflecting the company’s view that the report explained recent trading rather than constituted new material information.

Divergence in Assumptions and Forecasts

The ASX questioned whether the report’s assumptions materially differed from ADN’s own Updated Definitive Feasibility Study (DFS) for the Great White Project. ADN acknowledged significant differences, noting East Coast Research adopted more conservative assumptions, including a 10% discount on production volumes, exclusion of by-product sales, no logistics upside, and a higher discount rate of 13.5% compared to ADN’s figures.

ADN explained it did not seek to correct these assumptions in its price query response because they represent the analyst’s opinion rather than ADN’s official outlook. This distinction underscores the company’s caution in not endorsing external forecasts that diverge from its internal project evaluations.

Confidentiality and Ongoing Developments

The company also addressed concerns about confidentiality, assuring that sensitive information related to ongoing funding negotiations and the High Purity Alumina (HPA) scoping study remains tightly controlled under strict confidentiality agreements. ADN emphasized that these matters are not yet concluded or board-approved, and premature disclosure could be misleading.

ADN is currently in advanced but non-binding discussions with capital providers to secure funding for the Great White Project, with Merricks Capital having already approved a A$75 million debt facility. The company anticipates releasing the HPA scoping study shortly once finalized and approved by the board.

Governance and Market Implications

All responses to the ASX’s queries were authorized and approved by ADN’s board, reflecting adherence to the company’s continuous disclosure policy. While the East Coast Research report has stirred market interest, ADN’s careful navigation of disclosure rules highlights the challenges mining companies face in balancing transparency with confidentiality during critical project development and funding phases.

Investors should watch closely for the imminent release of the HPA scoping study and any binding funding agreements, which will provide clearer signals on ADN’s project trajectory and capital structure.