Note: I shouldn't have begun writing this before I finished reading the announcements but I couldn't help myself, it must be said I see this as quite positive and am very excited! Anyway, apologies for any mistakes made in my haste, please feel free to correct me.
All in all, I'm happy with this. We get full ownership of both the GW project AND Natural Nanotech. In my view, whilst the short term profits are to be made through the GW project, the Natural Nanotech venture, through its work on carbon capture, advanced computing, biological applications and hydrogen transfer and storage is where the real value lies. Australia has a long history of failing to capitalize on our rich mineral deposits, (look no further than iron ore) and I do not want to see ADN make the same mistakes. I hope to one day see ADN complete its transition from an explorer to a miner (almost complete!) and finally, to a minerals technology company, using our resources to engineer advanced materials whose application can capture immense value for shareholders whilst helping the global economy evolve.
I think the scrip offer is about right. I'm not fully across how all this stuff works but from what I read yesterday, ADN holders wanted a 1:1, which some MEP holders deemed insufficient. The consensus was anything over 1.5:1 would be undesirable and thus, I am satisfied with 1.15:1.
In regards to the DFS, yes this is disappointing. However, many already anticipated a delay. The DFS was always going to come after the mining license and this extension now gives the relevant government departments AMPLE time to twiddle their thumbs and come to a decision. I also note that the this extract from the announcement:
"Currently, additional studies are underway on other higher value products including High Purity Alumina (HPA), concrete (both rheology modifiers (HRM) and supplementary cementitious material (SCM) and cosmetics. Whilst it was not Andromeda’s intention to incorporate these products into the DFS due to their early-stage nature, the studies are progressing well, and the extended DFS completion date may allow incorporation of one or more of these."
ADN is my second largest holding and I admit, I haven't had the time to dedicate as much time as I'd like to my due diligence. Thus, I base some of my comments off what I have read on this forum. Alas, it was mere weeks ago that posters on here were disappointed that these high value products would not be considered by the DFS. The longer this drags on, the more likely we may find them included. These are after all, the first real high value-add products that ADN has the opportunity to bring to market and I believe, due to the sheer magnitude of the additional revenue these may bring, their inclusion could make our DFS a monster.
Anyway, from my point of view, it excites me to see that we are now 100% owners of both GW and Natural Nanotech and it is reassuring that the company appears (in my view anyway) to be firmly focused on the prospects of HPA and other long term value propositions rather than the short term, far less valuable CRM and PRM products.
I'll have a proper read of these when I get the chance but my initial impressions are positive. Stay strong my fellow holders, some seriously exciting times are on the horizon!!!
(20min delay)