Abundant room for very significant upside here I feel, with a number of "other" customers expressing strong interest in the dry processed ore and a "leading kaolin producer" looking to "blend" with our DSO, (how much might they be looking to lock in?)..................doubt it would be 'small amounts'.
This is all very positive and once some of these 'LOI offtakes' become binding then look out imo.This is a significant announcement from many perspectives, but it again highlights a big demand for quality and consistent supply.
".......confirmed a
significant demand for both halloysite‐kaolin ore and dry‐processed product......."
"......The domestic supply of
high quality halloysite‐kaolin has become
extremely unreliable in quality and also limited in volume........"
".......a leading Chinese kaolin producer which is
struggling with consistency of product and output volumes.........."
Prices below are from May 2019 presentation.....................note that ADN are in the 'Hybrid' end of the market with real potential to go into the pure Halloysite also.
These prices re ceramics and FCC markets from Oct last year:
Quick summary of main points as I see them:
1) DSO...........
"Three large Chinese companies have expressed interest in sourcing halloysite‐kaolin ore"........
"A meeting was also held with a
leading Chinese kaolin producer which is struggling with consistency of product and output volumes. They view Australia as a supplier of high‐quality minerals and
are keen to lock in a
long‐term and reliable supply of quality assured halloysite‐kaolin ore to
blend with their current kaolin ore to enable them to meet their required output and quality specifications"...........
2) Dry-processed............
".........China Mineral Processing Group (CMP), has now signed a non‐binding Letter of Intent for offtake of
100,000tpa with several other Chinese customers expected to follow. CMP is a leading Chinese producer of refractory materials, metallurgical products, ceramics and construction materials in China..........."
".......a
number of others have
approved the dry‐processed kaolin from the Carey’s Well deposit at Poochera......."
".........
Technical approval was given in sanitaryware, tile and glaze applications, as well as use as
a feed for high value calcined kaolin products..........."
"..........Testing of a number of dry‐processed samples in the UK*, China and Japan
has confirmed the potential for Carey’s Well dry‐processed material as a final product for ceramic applications.........."
3) Wet processed..........
"A number of wet‐processing trials conducted on the Carey’s Well halloysite‐kaolin ore in China has
proved that it can be used to produce a high‐quality product with the greatest possible market value"................
4) Petrochemical cracking............
".........evaluation of the material as a cracking catalyst for the petrochemical industry is being conducted by a large Chinese company........."
Would be excellent and yet another possible sales route should our product prove up in this respect.
And still we have the nano scale applications for Halloysite and the HPA arms of the business to ruminate upon............. all of this potential from one high quality easy to mine deposit...........
(20min delay)