Correct furry one, I don't think ADN were on the pulse with that announcement, it should have been explained as a starter block for procurement, and with intent to increase to Phase 1 as soon as possible.
They commenced procurement, and I would dare say this precurement is targeted for 50K with requested upgrades in quotations. 100% ADN is not thinking 50K is all we can get done prior to Phase 1, however they can only include what is signed sealed and delivered - today!
ADN is works in progress, and the NPV on this current arrangement is likely obsolete 2 months down the track. Multiple BOAs are on the table, as well as all the NNT applications previously discussed, now including pharmaceutical possibilities.
ADN is currently in process of building relationships, sending out testing samples and doing the hard yards of negotiating with offtake partners knowing fully well ADN needs offtakes. Procuring with lmited BOAs is difficult task; you cannot overcommit, but you can uncercommit and grow - and that is the path taken.
The NPV on the 2 BOA's that will be delivered as part of the 50K will not be impressive, and if you value the business on that alone, then, well personally I would be questioning my investment.
What we know: Mining Lease approved, PERP to follow 2 Offtakes, offering some diversifications Several Offtakes currently in progress and negotiations - This is key ADN working with IMCD to convert LOI to BOA - This is key GW a sizable tenement, with 3 tenements in the background Eyre Kaolin, more a distraction for now, but we can earn 80% for not much High Halloysite areas as well as Bright White areas. A respectable piggybank Excellent feedstock for HPA, and ADN have patents in this area. Although positive, I would have preferred they would have gone with that Canadian mob, which would have given immediate access to customers. Carbon Capture plant to take time, certification, and more certification - don't expect an announcement tomorrow, maybe in 2022 Cement Certification and a much time has gone into testing. Personally I never thought this would be a quick easy market; you are dealing with goliaths and safety is paramount. I would like to know more here.....
What we don't know status of most of the NNT applications. status of cosmetics, although I'm led to believe KCM is suitable for this application, and there is interest in this area. Mt Hope updated results.
Most of these NNT possibilities could appear as lefties; positive results in any of these could quickly transform into moving product quickly and at a premium. BOAs are not the only way to move product; for example CC success could move a lot of premium product.
So valueing ADN on these 2 offtakes is like declaring the game lost wen you are 4 2 down, and you walk out with 60 minutes to go. I doubt ADN's story is supplying 27K of KRM per year.
There is significant interest in ADNs product, and I for one am pleased they are so far securing good prices and diversifying risk geographically.
So I remain vested in ADN, and will look to increase my holding later this month. What I don't know, is that with current negativity around have we hit the bottom? If we haven't, a bargain may await me.....
End of this month, holidays await me in Europe - and it looks like Covid aint' cancelling this one. @Germoney I do like a good hefeweizen!!
(20min delay)