Current thoughts on ADV?, page-14

Fellow Shareholders

Interesting chat about where is the company and thus SP future. Well being that I live in Perth, I attended the AGM for ADV.

I was impressed by the company being frugal with money with the meeting in their very plain office boardroom and the only refreshments being water in paper cups. No fancy office which for a small cap in their position they are is great to see. I dislike company's that spend a lot of funds on fancy offices.

Now the real good news is they have a number of potential Lithium and Graphite sites in Canada that has good road and rail infrastructure around it and not far from the boarder with USA and a sort freight train trip to Tesla's battery factory which could be a potential customer. That is all very good.

Currently they are focusing on one of many tenements and drilling it in order to prove a 10 million tonne resource. As we all know that announcement could happen anytime soon, they just need to ensure that is is a firm 10 million tonnes JROC compliant resource.

So I asked the question, lets assume all goes well then what is the plan. Answer:

* Prove 10 Million Tonne JROC resource - In progress
* With proven resource seek buyers who are willing to sign take off agreements
* With signed agreements, talk to mining contractors and process plant builders in order to obtain mining and processing costs. At the same time seek Government approval to mine - not considered a major hurdle.
* With known costs, undertake bankable project feasibility study.
* Seek funding either via a loan or shareholder share plan or other method, but one thing they were very strong on is that they will not give equity in the resource without something significant is return, i.e. joint partnership etc. rather than a funding company who wants to loan the money at commercial rates and also expects free shares.
* With funding in place and Government approvals, build processing plant and finalise mining contracts
* Start production and make money.
* In the meantime dependent on available funds etc. continue to prove the resources in the other leases.

So simple plan but how long. From now to production could be up to 5 years.

Having said that we should look forward to SP increases along the way as known resources get proven and take off agreements get signed etc.

My only minor concern is that we all know that Nickel Cadmium batteries were all the rage before Lithium Ion ones came out. What if someone develops another battery technology that is better that LiIon and thus kills the demand for Lithium. It is a slight possibility but the current projected demand for Lithium is huge.

So in my opinion, for those seeking short term gains ride each announcement. For those in it for the long run of 5 years plus, who knows 50 cents or $1 per share may not be out of the realm of possibility but you will have to wait at least 5 years.

All IMO and please DYOR.

Griff