Ann: 2023 Definitive Feasibility Study Results, page-262

NVP and future cashflows to service debt are basically the same thing - the NPV of the Project is calculated by taking into account the future cashflows. In the case of this DFS, any banker looking to finance Stage 1A will want to see cashflows for Stage 1A - this is because they will want to make sure ADN can pay back the money borrowed for the Stage 1A development.

Then, once Stage 1 A is completed and provided it is performing well and meeting financial targets, the Banker may consider lending for the next Stage (and will require projected cashflows for the next stage etc).

I don't believe any Banker would agree upfront to lend for all stages i.e the full $176 million - much too risky! More likely they would agree to lend 50% of Stage 1A i.e. approx. $31 million and tell ADN they need to raise the other $31 million via equity (with hopefully a major coming on board as a shareholder). This $31 million lend would be subject to acceptable cashflow projections for Stage 1A and the ability to service the $31 million debt once Stage 1A was in operation. I don't believe the Bank will lend anything if Stage 1A doesn't generate sufficient profit (as a stand-alone) to pay back the loan because how will they get their money back? They won't want to enter into any arrangement where repayment of the loan is reliant on the other stages proceeding. This is because there is no guarantee that these stages will proceed - they cost $57 million each (Stage 1B & Stage 2) and this money in the DFS is not coming from cashflows from the Project - it will need to be either borrowed or raised via equity.

So, as I wrote in my earlier post, all later stages/ final NPV at this time are totally academic and irrelevant. The only thing that matters now is Stage 1A and successfully getting it financed and underway.

GLTA & DYOR