ADN CHART, page-4228

ADN is at the stage where the dilution tap will essentially turn off this year. Funding likely through a combination of equity and debt. High margin cashflow in 2022 starts dealing with the debt. We can then anticipate payback around mid 2023. From there cashflow funds growth.

In terms of any mining stock with a resource but no study ensure you allow 40%-50% dilution of fully-diluted share structure to achieve production. Allow more if they don’t yet have a defined resource or you expect high capex. Alternatively 10-15% dilution per year. Most simple projects take 4-5 years to achieve production after a resource is defined.

This is my basic process for new mining stocks. Key is to work out potential production scenarios before the market does. I think 3-5 years out, I look at more mature peers with similar mineralisation to get an understanding of costs. Gold / PMs and other spot commodities it is straightforward to work out prices. Do some reading of feasibility studies for peers, use that as a basis for critical thinking when evaluating strategy / plans of new stocks you are looking at. Then phone management up, ask questions, provide friendly and constructive feedback ( and see how they respond ). I find the constructive feedback test works well.

Also - read some Canadian NI 43-101 format preliminary economic ( scoping ) and technical / feasibility studies. You will learn much more about the nuts and bolts of mining projects ( both technical and importantly financial) than the summary studies we see reported via ASX ( so much important information is hidden from us - my big criticism of standards of reporting on the ASX ).