attempted valuation, page-38

Based on a full year's production

Santa Barbara & Santa FE Iron Ore 2.4mil tonnes @ $42 margin @49% ADY share equates to $AUD 56mil (88cents AUD v US)

Plus Lithium Speciality Specs 2000 tonnes @ US$18000 margin = AUD$ 41mil

Plus Lithium 17000tonnes @ US$5000 margin = AUD$96mil

Potash 70000 tonnes @ US$155 margin = $AUD12mil

Net $205million
950million fully diluted shares
EPS 21.5
PE 8
SP =$1.72

Now ramp the iron ore to 5 million tonnes and lithium to 35000 tonnes
Net $360million
EPS 37.8
PE 8
SP = $3.03

Warning my assessment may be wrong, as they my know crude number crunching, but State One stockbrokers put a SP target of $1.20 and EPS of 15 cents based on only 6 months of lithium production. They are the experts so I am not that far off.

Using a humble PE of 8 for such a long life resource is being conservative, but it demonstrates that ADY SP appreciation has only just begun.

This is a comfortable hold for the patience, no decision required until $1.50 is hit.