Stocks of the Hour: Andromeda Metals, Myer, Vulcan Energy

Company News

by Tim McGowen

Andromeda (ASX:ADN) has signed a legally binding offtake agreement with the Vietnam and Hong Kong based Asia Minerals Resources (AMR) to supply halloysite-kaolin from the Great White Kaolin Project. The binding agreement is for up to a total of 38,500 tonnes of halloysite-kaolin over the first three years of production at a price in excess of the Definitive Feasibility Study pricing. The agreement includes sales into the ceramics sector covering Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the UAE. Andromeda’s Managing Director James Marsh, said, “This Agreement with AMR is a significant milestone for Andromeda as it is the first one for our initial Great White halloysite-kaolin product with a leader in the world of high-quality ceramics which confirms the quality and value of the unique Great White resource. Shares are trading 12.4 per cent higher at 10 cents.

Myer Holdings Limited (ASX:MYR) today provided a trading update and results guidance. Myer is now on track to report its strongest net profit since 2017, with its online platform driving strong sales growth and its cash on hand swelling to more than $155m. Myer CEO, John King, commented: “Execution of the Customer First Plan continues to deliver positive outcomes for the business with all categories achieving sales growth over FY21, despite more trading days lost due to COVID this year. “The momentum in the second half in terms of sales growth both in-store and online, profitability and strengthening of our balance sheet places us well as we go into the new financial year.” Shares are trading 20 per cent higher at 48 cents.

Vulcan Energy Resources (ASX:VUL) has received new work approvals for its Zero Carbon Lithium project in Germany and further expanded its exploration licence area in the region. The company was given permission by eight local councils to undertake a 3D seismic survey, which it said it would use to assist in future development drill planning. In addition, Vulcan was granted a new exploration licence in the area. Vulcan Managing Director Francis Wedin said the positive support for Vulcan’s planned work was a strong endorsement of the project. “We are now well-positioned to progress work in this area more efficiently and cost-effectively, at a time of unprecedented demand for lithium for electric vehicles, and for renewable energy in Europe,” Dr Wedin said. Shares are trading 4.9 per cent higher at $7.46.

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