Ann: Great White Kaolin Project Update, page-51

I just posted this on MEP - I hold MEP.

From the compelling economics of the 1 June 2020 PFS, we may reasonably conclude ADN's DFS will recommend proceeding directly to wet processing, likely at a larger scale than the PFS's 233kt pa.

The PFS put that cost at $84m, which could reasonably be contemplated with bank finance, perhaps a modest cap raise ~$10m for owners costs, admin, contingency, etc.

We all hope the Great White project scales larger than this. There are markets for more, markets that currently do not exist - as a concrete additive, nanotubes and on. Nor is there a firm transparent price for the output. Porcelain clay may be worth $700t, but what is the concrete additive worth?

Making concrete stronger - more robust bridges, slimmer building columns - translates into real money. Structural engineers are rational. They will do the maths and pay.

This demand exists today and simply awaits production and output. $2000 a ton or $20kg is immediately possible.

I cannot value the higher uses.

Circling back to where I began, the capital cost will be higher, mostly funded by debt. I suspect the banksters will want to see some proprietor's capital and a capital raise. How much - who knows!

Ash