General comments/chat, page-12853

All IMO

I've seen interesting thoughts on what ADN will sell in terms of product and to which market.
i.e. the suggestion to not sell to the ceramics market, because of price, and instead sell to the Cement or HNT or coatings or HPA markets because of higher returns.

Business 101 is to make money from the deal in front of you and be a loyal supplier.
In my life I have seen enough occasions where suppliers hold out for the next big deal and forget the bread an butter deals. IMO the bread and butter deals keep the wheels of business turning and hone management and staff on their craft to market and sell and understand their own product.

I suggest a good balance of customer is required for ADN because one never knows when a curve ball or black swan event will stop a market which can be enough to destroy a company or at the least hamstring it for a number of years = no value or dividends. e.g. the universities who exposed themselves to a single market such as international students. Do they not teach market exposure in economics 101 but don't practice it?

I prefer to see ADN address all markets, including ceramics, and then generate revenue growth from the many other market opportunities that are available. Sure ADN can limit total annual production to any one market which is also prudent and arguably this provides for competition and potentially higher price points in each market. ...and nothing wrong with time limits on these contracts of 5 or 10 years to ensure value for money for SHs.

At the end of the day write the deal in front of you (provided it is profitable) and and you will do well in business and life.

Just keeping it real so no one is disappointed when an offtake for the ceramics market is announced....and also think supplying this mature market will cover all/most costs of ADN in the first 5 years so everything else is cream and the ADN moat is wide.

All IMO

avagudweekend