Rick Rule believes ADT will see a substantial re-rate of ADT if...

Rick Rule believes ADT will see a substantial re-rate of ADT if it delivers on production and ASIC (or close to ASIC). I agree with him.

6 brokers (5 with strong buys) cover ADT and 4 have a profit estimate for FY 25 giving a forward PE of between 3.5 and 5.3 and a median PE of 4.6. If the brokers estimate are delivered by ADT then the current SP will look like a bargain in a years time - the SP may do an EMR and triple over the next 2 years ie a possible SP of $15! Maybe the ADT SP won't go as high as $15 in the next 2 years but if it delivers than we will still see a major re-rate. If silver, gold and zinc prices see substantial increases over the next 12-2 months as many experts expect then SP may even go above $15. All speculation!

I also noted the exploration comments in the quarterly (see quote below) suggesting there will be an extension of high grade zones of mineralisation which will just add to the mine life and annual production. They are also drilling other parts of the tenements.

"Holes in the north of Rupice have infilled and stepped out from existing Inferred mineralization. Mineralization distribution was successfully defined within two strongly mineralized horizons and found to extend up-dip. The geometry and continuity were previously poorly defined. The Q1 drilling has shown that there is opportunity to
repeat this success further to the north through systematic and targeted drilling to define a 150m wide, 10m to 20m thick massive sulphide zone northwards.Holes in the south of Rupice have infilled and effectively closed out a 250m wide zone of massive and semi-massive sulphide, varying from 6m to 25m in thickness. Drilling in Q2 will continue to chase mineralization southwards into undrilled areas. Mineralization is continuous and sitting above a variable thickness spilite unit."

"Detailed announcements on progress and results to date for the Rupice Northwest, Rupice and Droskovac exploration projects will be released in Q2 2024."

In addition ADT are looking at increasing throughput from 800ktpa to over 1mtpa.

"The grade control contractor has been mobilised with the drilling programme expected to identify opportunities for further optimisation of the mine plan and reduce development costs. Grade control drilling for the first stope on the 1050 Level will be commencing in early May. Adriatic is in the process of conducting formal studies to confirm plant throughput can be increased to over 1Mtpa, to align with anticipated mine production."