I spoke to James Marsh a few months ago after I published my article on their ‘clay’ business – A simple business in mining clay – Andromeda Metals Ltd (ASX:ADN).
In that conversation, I got my first insight into what could be driving the surge in the share price.
Interest in ‘clay’
I was not sure why a ‘clay’ business could harvest all the market interest.
I have known about the clay story for a while as there are a lot of known kaolin resources in Western Australia. These resources have never been successful due to logistics.
James and I spoke for a while and we agreed to try and catch up for a Coffee with Samso one day.
Well, that day has happened in the beautiful city of Adelaide. The conversation was very engaging and we had the longest ever Coffee with Samso.
This is a testament to how effective it is to get a story out with the Coffee with Samso format.
It was one of the most interesting conversations as I learnt a lot from James and the kaolinite industry and how halloysite is positioned in this market.
What I can say is that Andromeda Metals has some very natural barriers to entry for new players.
The company is very lucky to have someone who knows the end product market and at the same time have had over 30 years of experience with Halloysite.
I don’t think these parameters are easily replicated.