Ann: 2023 Definitive Feasibility Study Results, page-240

@zacko92 well done! Your posts re the DFS make sense and I agree with you. My general observations about the DFS and ADN going forward are as follows:

- I do think that the new management and NBSB are making some real progress - they are now focusing on real doable business like CRM to quality ceramic producers rather than the previous scatter-gun approach
- Re the DFS, as you wrote it's kind of meaningless only getting a NPV for the final Project once all stages are up and running. This NPV is totally academic as far as I'm concerned. I'd be much more interested in the NPV of just Stage 1 A with capital cost of $62 million. What is the NPV of this Stage 1A? IMO it's likely not great and that's why they haven't disclosed it.
- In the DFS only capital cost of Stage 3 is funded from Cash Flows from the Project. This means that the DFS relies on debt or equity funding of approx $62 million + $57 million + $57 million = total $176 million to reach end of Stage 2.
- The AUD exchange rate over the life of mine is assumed in the DFS at 0.675 which seems very generous to me. Have a look at a AUD/USD chart for the last 20 years to gauge the average exchange rate over the last 20 years. Typically, it's significantly higher that 0.675. I'm also kind of puzzled by the aggressive growth assumptions for contestable market volumes for the products in the DFS.
- Having said all this, to me the DFS is academic. Time for talk is over. What we want now is funding and Stage 1A development. The rest is absolutely meaningless at this stage.
- A large equity investment from a major eg. Imerys would be a very positive sign and I'll be watching with interest. I believe the product is good so logically now would be the perfect time for a major (who knows a lot more about the kaolin market than any of us) to take equity in ADN and provide some of the funding for Stage 1A. A failure to obtain any funding in this way would be disappointing - surely if the Project is as good and globally competitive as we believe it is, it should be able to attract some funding from an industry major.

GLTA & DYOR