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There's a versatile material garnering global attention, but some investors may not be aware of the opportunity just yet.

Introducing kaolin. The material can be used in a huge range of products — from paper to inks, plastic to ceramics — and Australia has an advantage over may other jurisdictions.

Both explorers and shareholders are on the hunt for high-quality kaolin, eager to profit off this adaptable, valuable commodity.

So as global demand and the wider market for kaolin continue to grow, which companies are best placed to turn this white clay into cold, hard cash?

As with any resource, it's likely to all come down to whoever has the lowest cost of production rate.

What is it?

Kaolin is used across the paper and ceramics industry, however, it also has applications in fibreglass, rubber, plastic, pharmaceuticals and cosmetics markets.

The paper industry was the biggest consumer of kaolin in 2017, but in the years since, the mineral is more frequently being bought up by those in the ceramics business.

This is because kaolin provides a stunning gloss and whiteness to whatever end product it's incorporated with.

Additionally, the versatile mineral can also be transformed into high purity alumina (HPA), which, in turn, is used in smartphones, watches and lithium-ion batteries.

The global market for kaolin is already close to US$5 billion (around A$7.12 billion) and that figure is only expected to grow over the coming five years.

Even more important? Australia, and in particular Western Australia, is poised to have a commanding role in this growing resource’s market.

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Suvo Strategic Minerals (ASX:SUV)

One of the companies invested heavily in kaolin is Suvo Strategic Minerals. The ASX-lister owns the White Knight Kaolin Project in WA’s wheatbelt region.

White Knight plays host to a maiden JORC inferred resource of 35.1 million tonnes with an average ISO Brightness of more than 80 per cent.

The brightness of kaolin is significant, as the ceramics industry will pay more for kaolin, the whiter it fires. As a result, Suvo is in pole position compared to its peers.

Suvo is still in the early stages of development though and the company has yet to advance White Knight to the pre-feasibility stage.

Recently, however, the materials stock appointed a kaolin and halloysite global expert to its board, paving the way for White Knight's development.

In late August, Dr Ian Wilson joined Suvo as a Non-Executive Director. He brings 45 years' experience in industrial metals and has worked with the world's biggest kaolin producer, Imerys.

"Attracting someone of the calibre of Ian to our Board validates the significant potential we have with our White Knight Kaolin project," Suvo Executive Chair Robert Martin commented.

Even though it's just relisted on the ASX, the new appointment is a vote of confidence in the company's portfolio and prospects.

WA Kaolin 

In comparison, WA Kaolin is in a very different position. The privately-owned company, which has floated the idea of listing on the ASX, owns the Wickepin Kaolin Project.

The company is focused on turning the resource into a market suitable feedstock, with a goal of moving its plant and producing 200,000 tonnes per annum within 12 months and 400,000 tonnes per annum in 36 months.

It already has customers in place for 100 per cent of its current offtake and is confident the demand for its product will continue to outstrip supply.

As a result, WA Kaolin is eager to take its business public. In a prospectus published in mid-October, the company revealed it was looking to raise $22 million to support its ASX listing and project development.

But time will tell if it's not too late to the party.

Andromeda Metals (ASX:ADN)

And finally there’s another Australian company looking to profit off this prospective resource.

Andromeda Metals has built a portfolio of halloysite-kaolin plays across the country, spanning over 5374 square kilometres and 19 exploration licences.

To support its ambitions, Andromeda is developing the Great White Kaolin Project, situated in 635 kilometres west of Adelaide in South Australia — an area it's described as "globally significant."

At the project's Carey's Well deposit, Andromeda has identified a 20.2 million tonne kaolin resource estimate, 7.4 tonnes of which falls in the measured category.

Now, Andromeda is focussed on completing Great White's definitive feasibility study, with hopes to get the project shovel ready for 2022.

But, the problem for Andromeda may be the very significant capex it needs to find to bring its promise to life.

Looking ahead

The beauty of kaolin is that it's a 'blue-sky' industry. There's plenty of uses for this white clay already, but it's becoming an increasingly important tool in a range of emerging industries.

For instance, kaolin could play a key role in the developing electric vehicle industry. High purity halloysite-kaolin makes the perfect feedstock for high purity alumina, which is integral for creating the electric vehicle batteries.

As a result, kaolin's value is on the rise. According to a Grandview research report, by 2027, revenue from kaolin sales is poised to reach US$6.28 billion (roughly A$8.94 billion)

Over the next seven years, the pure white clay carries a 3.1 per cent compound annual growth rate (CAGR), meaning it's primed for future growth.

Who will be winners?

With part of kaolin's value tied to its quality, pricing for the white clay is on the rise. In turn, increasing global appetite is set to weigh on supply, sending costing skywards.

So the challenge for producers isn’t finding buyers. The challenge instead is to have the lowest cost of production. The winners in logistics in particular are likely to be the best investments.

Ultimately, it'll lead to significant upside as this bright white resource continues to shine.

Read the article on The Market Herald 

• Kaolin and silica sand explorer Suvo Strategic Minerals (SUV) has begun a resource definition drilling program at its Nova Silica Sands Project in WA
• A total of 1620 metres, for 54 holes, will be drilled to define a maiden mineral resource of high-grade silica sand
• Once drilling has been completed, Suvo will send bulk samples of silica for metallurgical test work
• These results will then define specifications, grade and quality for end users
• Company shares are down 1 per cent and trading for 9.7 cents

Drilling will include up to 1,620 metres over 54 holes at a maximum depth of 30 metres. The program is aimed at defining a JORC-compliant maiden mineral resource of high-grade silica sand.

The Nova Silica Sands Project is located in the Gin Gin scarp, near Eneabba. Suvo also has existing infrastructure directly from the project to the Geraldton Port.

In September, the kaolin and silica sand explorer was granted two more tenements at the project. Combined together, these tenements cover 79 square kilometres and includes 29 blocks.

When the tenements were granted, Suvo posted its intention to submit a program of works (PoW) to begin the drilling program which has now commenced.

During this time, Suvo said it had been granted a PoW from the Department of Mines, Industry Regulation and Safety (DIMIRS) for exploration to explore an already-owned tenement.

"We are excited to begin work on delivering our maiden Inferred JORC resource at Nova. We take a lot of confidence from previous test work we conducted in the area and we are looking forward analysing these results," Executive Director Aaron Banks said.

Once the drilling program has been completed, Suvo will send bulk samples of silica for metallurgical test work. These results will define end-user specifications, grade and quality.

The company expects assay results and a resource estimate will be finalised before the end of the year.

While the company's White Knight Kaolin Project has been a focus lately, Suvo is looking forward to unlocking Nova's potential as a key player in the silica sand market.

The silica sand market is estimated to be worth US$8 billion (roughly A$11.3 billion). High-grade silica can be used for various industries including glass, metal, ceramics, concrete, filtration and chemical production.

"Our team is looking forward to unlocking shareholder value in what potentially is a very significant project for WA," Aaron concluded.

Read the full article on The Market Herald

• SUVO Strategic Minerals (SUV) has expanded its landholding at its White Knight Kaolin Project in WA
• SUVO has been granted two new exploration licences by the WA Department of Mines
• It brings the company's total landholding for the project to over 40,000 hectares
• The White Knight project has a JORC Inferred Resource of 31.5 million tonnes of bright white kaolinised granite
• Shares in SUVO are currently trading for 6.7 cents each

Exploration and mining company SUVO Strategic Minerals (SUV) has expanded its landholding at its White Knight Kaolin Project in WA.

The White Knight Project is one of SUVO's flagship projects and is located on cleared farming land northeast of Perth.

The WA Department of Mines has today granted SUVO two new exploration licences for the site, expanding its total landholding to over 40,000 hectares.

The new licences cover an area north of its existing tenement, which SUVO considers highly-prospective for kaolin.

The White Knight project currently has a JORC Inferred Resource of 31.5 million tonnes of bright white kaolinised granite

Commenting on the expansion news, SUVO Executive Director Aaron Banks said this will help increase its resource estimate: 

"The expansion of the prospective area will provide additional exploration targets with the opportunity to further increase our resource and help accelerate a pathway to mining," he said.

"The new tenements are likewise located close to excellent logistic solutions with direct access to multiple ports via well-established and under-utilised road and rail networks," he added.

Shares in SUVO Strategic Minerals are currently trading up 1.52 per cent at 6.7 cents each at 3.03 pm AEST.

Read the full article on The Market Herald here: https://themarketherald.com.au/suvo-strategic-minerals-asxsuv-expands-white-knight-2020-09-10/

• Suvo Strategic Minerals (SUV) has appointed economic geologist Dr Ian Wilson to the board as a Non-Executive Director, effective from September 1
• Dr Ian Wilson brings 45 years of international experience in industrial minerals
• He has held a number of technical and leadership positions in major companies, including the world's largest kaolin producer, Imerys
• Executive Chairman Robert Martin is pleased to have someone of Ian's calibre joining the board
• In particular, the addition will help accelerate the commercialisation of Suvo's White Knight Kaolin Project in WA
• Company shares remain in the grey, trading flat at five cents in early day trade

Suvo Strategic Minerals (SUV) has appointed Dr Ian Wilson to the board as a Non-Executive Director, effective from September 1, 2020.

Dr Ian Wilson is a well-regarded Economic Geologist with 45 years' global experience in the industrial minerals sector.

He has held technical and management positions in publicly-listed companies such as Imerys, which is the world's largest kaolin producer.

For nearly three decades, Ian worked for English China Clays and Imerys on global geological and project activities. In the early 1980s, he was the General Manager of ECC do Brasil Mineração in Jundipeba, São Paulo. Following this, he was the joint Managing Director of joint venture company, CEDESCA, in Spain.

Additionally, Ian was a Project Manager for ECC's new ground calcium carbonate (GCC) operations in Sweden and China, and was a secretary of the Mineralogical Society of London.

"Ian has spent the last 45 years evaluating, testing, sourcing and commercialising kaolin deposits for some of the largest mines and end-users of kaolin globally," Executive Chairman Robert Martin said.

"Attracting someone of the calibre of Ian to our Board validates the significant potential we have with our White Knight Kaolin project," Robert added.

Suvo considers this appointment to be highly strategic in commercialising its White Knight Kaolin Project, which is located roughly 210 kilometres northeast of Perth, Western Australia.

Company shares remain in the grey, trading flat at five cents in early day trade.

Read the full article on The Market Herald here: https://themarketherald.com.au/suvo-strategic-minerals-asxsuv-appoints-global-expert-dr-ian-wilson-2020-08-25/

• Another ASX-listed company has moved into the kaolin market, as companies begin to see the opportunities associated with the versatile mineral
• Kaolin is a type of white clay, which is derived from the mineral Kaolinite
• Its mainly used in the paper and ceramics industry, though it can also be used in fibreglass, rubber, plastic, pharmaceuticals and even makeup
• Kaolin can be transformed into high purity alumina (HPA) which is used in new smart gadgets and lithium batteries

A new type of mineral is being snapped up by ASX-listed companies, who are hopping on the 'white gold' trend.

The opportunity here is kaolin - a type of white clay, which is derived from the mineral Kaolinite.

The mineral is used primarily by the paper and ceramics industry, however, it also has applications in fibreglass, rubber, plastic, pharmaceuticals and even makeup.

It can also be transformed into high purity alumina (HPA), which is in incredibly high demand as it's used in smartphones, watches and lithium-ion batteries.

HPA was traditionally produced from aluminium metal, but new technologies mean it can now be produced from kaolin, placing the mineral in hot demand as well.

There are numerous companies who have already bought into kaolin, including Andromeda Metals (ADN), Altech Chemicals (ATC), FYI Resources (FYI), Metalsearch (MSE), Archer Materials (AXE) and Accelerate Resources (AX8).

Soon to be ASX-listed company SUVO Strategic Minerals (SUV) has also entered the market, acquiring the Mt Marshall Kaolin Project in WA last year.

SUVO Strategic Minerals plans to eventually sell its product to the premium ceramics, fibreglass and paper coating markets.

Altech Chemicals is taking a different approach. It recently completed stage two construction work at its HPA plant in Malaysia, where it plans to use kaolin as its feedstock.

Altech has a ten-year offtake sales arrangement with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia, to supply them all of its HPA.

Meantime, FYI Resources wants to use its kaolin as feedstock to create HPA, as do Metalsearch.

While Andromeda - who has joint agreements in place with Minotaur Explorations (MEP) for two kaolin projects - believe they can sell the products both as feedstock and to the ceramic industry.

Finally, Archer Materials and Accelerate Resources have begun testing their kaolin product, to see what potential it has as HPA feedstock.

Read the full article on The Market Herald here: https://themarketherald.com.au/white-gold-the-opportunity-of-kaolin-entices-asx-listed-exploration-companies-2020-07-23/