It’s worth noting that over the years many kaolin project’s have tried and failed to get up. So why should ADN be any different? However, ADN is well ahead of the game in terms of identifying a Halloysite/Kaolin resource but hasn’t secured any binding offtakes. Yet, they are on the look out for more resources and seem to be trying to create and develop new markets for their product. This suggests that they are struggling to make what they currently have a viable proposition. If that’s the case then, maybe the market potential doesn’t have room for more than one player, only one big player. After all, it's all about consistency at scale.
As for Renascor, it would be good to test whether or not they have the right mix of Halloysite/Kaolin at large enough quantities? Given that ADN’s resource is located on the western side of the Eyre Peninsula while Renascor is on the more industrial and populated east coast, maybe RNU is better situated. It certainly wouldn’t be a big imposition to at least drill the shallow ore body to potentially add another string to their bow.
RNU Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
