Ann: Pre-Feasibility Study Further Improves Poochera Economics, page-334

That is not entirely correct. Most deposits, including lithium, have differing grades and impurity levels, and grade an impurity levels impact revenue, costs and obviously project viability.

To illustrate a lithium hard rock deposit grading 1% Li2O will produce about 267,000 tonnes of 6% grade spodumene from a 2mtpa configuration at 80% recovery - a deposit grading 1.5% Li20 produces 400,000 tonnes, meaning more revenue per unit of installed capacity. Now Fe203 is an impurity as well in a lithium deposit - say the resource had a Fe203 elements of 0.5% - if the resource grades 1% Li20 then you need to collectively remove 3.75% accumulated Fe203 in making 1 tonne 6% grade spodumene, but only 2.5% if the ore grades 1.5% Li20. Obviously added cost, noting saleable spodumene product, without incurring penalties, generally has up to 1% Fe203 in the concentrate, with probably some form of pricing penalty applying if sold with higher Fe203 count than that. Because of impurities some lithium deposits are no good for the growing hydroxide market, which are required in your NCM 8:1:1 EV batteries. Point - not all resources are the same, including iron ore, copper etc etc

Kaolin and halloysite deposits can have also have different grades and impurities, and the need for ADN's product is because in a nutshell IMO it is high grade, has great brightness, is low on impurities and is far superior than the rubbish China has.

Yes upfront capex, given how low it is for what ADN is proposing in the PFS on product produced is a fundamental upfront lower capex benefit when compared to producing spodumene or copper/nickel concentrate for example. Iron ore is simply dig crush and screen so lower processing need, so not all exports are capex intensive per tonne of saleable product. But obviously when ADN turns its mind to HPA it will be capex intensive. As per the PFS focus, lower upfront capex also means mostly a much quicker timeframe to production, but speed to production is also a function of how quick your approval processes are btw and in China well they don't take long to build anything however complicated it is.

The sound IRR here for ADN is because of low upfront capex plus the price/revenue benefits of having a high quality resource. Others with not as good resources are moving to directly HPA IMO because that is the only way they can, IMO, make there projects viable. The solid ADN resource also allows upfront cashflow with low capex spend, hence 175% pre tax IRR, which they can then retain in earnings to put some into more costlier capex spend pursuing HPA (an option not available to those with a resource not as good as ADN).

Not all deposits are therefore the same, a fact given that only 1 in 100 exploration plays ever make it to mining IMO

A different perspective, but Offtakes and market believing ADN will be in production in 2022 (and that also means progressing the necessary approvals) and SP here will look after itself.

All IMO