Interview with Andrew Penkethman, MD & CEO of Ardea Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/ardea-resources-asxarl-japanese-back-australias-largest-nickel-project-6747

Recording date: 21st August 2025

Ardea Resources (ASX: ARL) is advancing Australia's largest nickel-cobalt project during a period of significant industry consolidation, positioning itself as one of the few nickel developers globally making meaningful progress outside Indonesia. The company's Goongarrie project represents not only Australia's largest nickel-cobalt resource but ranks among the world's most significant deposits, with a 40-year reserve life covering only six of nine identified mineral deposits.

The cornerstone of Ardea's strategy lies in its partnership with Japanese industrial giants Sumitomo Metal Mining and Mitsubishi Corporation. Following several years of detailed due diligence, these partners are funding the entire $98.5 million definitive feasibility study scheduled for completion by late 2025. Under the joint venture structure, the Japanese consortium will earn up to 50% ownership upon final investment decision, while bringing proven high-pressure acid leach expertise from successful Philippine operations that achieved over 100% nameplate capacity in under 12 months.

Managing Director Andrew Penkethman emphasizes the strategic timing, noting that while "the energy transition's currently going over a speed hump," the company's 2029 production target aligns with forecast nickel market recovery and expected return to deficit conditions. The project benefits from operational advantages including low acid consumption and on-site neutralizer sourcing, while securing 75% offtake with tier-one Japanese partners for the mine's life.

Ardea maintains disciplined capital management with only 210 million shares outstanding since 2017, $14 million cash, and no debt. The Japanese partnership provides access to competitive export credit agency financing, potentially offering some of the world's cheapest project development debt. With many nickel operations in care and maintenance, Ardea leverages current market conditions to access skilled personnel and service providers while positioning for the anticipated recovery.

View Ardea Resources' company profile: https://www.cruxinvestor.com/companies/ardea-resources-limited

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