ADN Scoping Study

Hi all.

In anticipation of the ADN Scoping Study.... I find it only fitting to post what i believe to be the closest thing to compare our mining style with.

All the below is IMO only, and shouldn't be taken as advice. Im happy to hear any apposing views, so long as they are based on FACTS.

The below is based on the FYI PFS (to an accuracy level of between -10% to +25%), released less than 12 months ago, so relatively current.

The following items are to note in regards to differences between the two mining costs.




- Overburden is 100% more at Poochera at approx 10m as apposed to 5m at FYI (overburden costs X2)
- Bulk density at Poochera is 1.44tpm3 Vs FYI 1.7tpm3 (overall mining costs X1.18)
- Haulage route..... no idea... i cant seem to find where FYI specify what the haulage distance is from pit to storage area, however, this will play a very large role in the pricing.

In summary, and regardless of the above FYI PFS, my feeling, based on my personal experience, would be a TOTAL mining cost of no more than $15pt. Keep in mind when I state TOTAL, im talking indirect costs also.

At the mean LOI off-take price of $127.50, that leaves approx $112.5 for CIF and profit..... there is no way the CIF price will be $112.5...... but for the sake of a reference point... lets say its $90pt = $22.5 pt profit = $6,834,375 PROFIT just on DSO. It is important to note, that DSO is low cost, high turn-over, low margin product.

Then you enter the high margin Dry-Screened Product = where the $$$ is

Im going to say an all in Cost of $120 per tonne to generate this product. I recon $80 for transport to port = FOB ~$200.

A good $150pt X 307ktpa  profit to be made i believe = $46,050,000 PROFIT

All the above is IMO only..... and is why i loaded up months ago.... at the end of the day, the release of the SS will be the true catalyst of where the MC will be within 26 days