ADN is valued for the ability to build a good business with low cost, low risk, low dilution and then quickly move to self-funded growth. The market is factoring this into price sentiment.
Whilst ADN get a strong foundation for the business in place with the first project they can progress strong opportunities in parallel ( Paints & Coatings, Concrete additives, HPA feedstock ) that they can quickly turn on the tap for growth and diversification of revenue streams ( a sensible approach in any business ). All of these are great opportunities without looking at the blue sky Halloysite Nanotube applications.
What sort of scenario would most investors prefer?:
ADN
Others (many mining projects in this category now - working on DFS and then moving to financing)
- Unique high quality resource ( business moat )
- Stable / steady price growth of industrial minerals ( particularly kaolin )
- Very low capex ( $50M to $100M ) relative to market cap
- Fast payback ( 15 months from start of works on site )
- High margin ( around 50% )
- IRR 175%
- 11 months to operations on site, ~18 months to first revenue
- Low strip ratio
- Low technical complexity of plant
- Short commissioning period
- Low dilution of shareholders in time to achieve payback
- Can move to growth mode within 15 months of operations on site ( about 25 months from now ).
- Spot commodity ( high competition for some markets )
- Volatile spot commodity pricing
- High capex ( $300M + ), high debt burden
- >= 3 years payback
- Margin less than 30%
- IRR < 50%
- 2-4 years to construction on site ( so ongoing dilution )
- High strip ratio
- High technical complexity of plant ( and hence high risk )
- Long commissioning period
- High dilution of shareholders in the time to achieve payback
- Need to pay off debt burden ( 3+ years ) - 5-7 years for growth allowing for time to get studies complete, financed, constructed / commissioned, achieve payback
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Last
0.8¢ |
Change
-0.001(6.25%) |
Mkt cap ! $23.75M |
Open | High | Low | Value | Volume |
0.8¢ | 0.8¢ | 0.7¢ | $12.78K | 1.619M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
75 | 27079187 | 0.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.8¢ | 16535467 | 29 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
75 | 27084239 | 0.007 |
56 | 24730155 | 0.006 |
26 | 13930122 | 0.005 |
8 | 10525000 | 0.004 |
6 | 19278333 | 0.003 |
Price($) | Vol. | No. |
---|---|---|
0.008 | 16535467 | 29 |
0.009 | 14828752 | 13 |
0.010 | 7769819 | 10 |
0.011 | 14346522 | 7 |
0.012 | 13445921 | 6 |
Last trade - 11.47am 30/09/2024 (20 minute delay) ? |
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