Why am I so keen on ADD and the aussie market doesn't get it yet?
Lifezone Metals (LZM) listed on the NYSE (US$750m MC) owns 40% of the Kabanga nickel deposit as its main asset with BHP (44%) and the Tanzanian government (16%). It's BHP first foray back into Africa and they payed US$100m for 17% of Lifezone Metals before it listed to get access to the Kabanga nickel deposit.
Where does ADD fit in? It surrounds all the perspective nickel ground around the Kabanga nickel deposit (map below) and with a bit of luck they're about to discover another nickel deposit in the same belt.
If we use LZM's 40% ownership, then BHP and the market value the Kabanga deposit at US$1.875 Billion or A$2.7 Billion.
What is ADD worth to BHP/LZM if they make a Kabanga type discovery?
ADD has a MC of just $17m!?!
And this is what it's all about, massive sulphides which ADD hit in their first hole - lets call it the elephants tail!
ADD Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
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