ADN - CAPEX to NPV Comparison, page-4

Exactly what sets ADN apart from so many other plays trying to head into production. Over the many years the biggest hurdle i have seen for mining companies is the massive capex numbers some in the range of 200>500 mill $. The struggle over many years trying to raise these funds through mixtures of debt and equity raises becomes a long road of disaster for many with usually a companies stock price deteriorating as the market sees equity raises coming to meet production capex. On the other hand ADN is positioned with minimal capex with numerous potential options to meet this small capex amount through option conversion of significant $ plus a mix of potential binding offtakes that will include pre paid part or cornerstone investment by these parties.

In the teleconference James mentioned that the short term potential news flow was binding offtakes with pre payment. A mix of these pre paid funds, oppie conversion and potentially smal debt or equity raise will get ADN into production with 2nd phase on site plant paid by 1st year profits. In my entire investing life i have never seen a potential story like this with low cost capex and the ability to ramp up so quick with 1st year profits to move to 2nd phase on site plant production. As the market digests and starts to fully understand how low cost this start up to production is plus the timelines we should see this head to new highs. James clearly stated the timelines and numbers were all very conservative with him expecting to beat them but would rather underpromise and over deliver. By the way ADN has performed since James has come on board I expect him to fully come through on his expectations of beating both timelines and cost/profits on SS study numbers.

So currently ADN sits at 72 mill market cap with potential to move into production id say between end 2020 to 2021 with very low capex to get there. Is 72 mill where ADN should sit right now. The market right now thinks so but i believe once the market fully digests this story we will sit at mutiples of this level as more boxes get ticked off including these potential binding offtakes with prepayment. I have seen companies with production plans with capex numbers of 300 mill $ + sitting at 300>400 mill market cap. ADN has low capex, potential to up numbers & mine life through completed drill program plus the blue sky potential of pure halloysite production, HPA and the real blue sky of nanotech. Interesting to hear james get excited about the nanotech which sells for 1000’s of $$ per kg and the potential there being worked on with Newcastle uni. Currently awaiting a govt grant with potential to move to a 1st up small scale production plant. Govt backing of this part of the business would really see the market take note i believe with multiple new age end uses for these nanotech applications. Its only been a week of trading since scoping has been released but as the market fully digests and understands the low cost fast track to production here ADN is setting up to be a market darling through end 2019 and into 2020.