Thank you.

ASX: DRX: Diatreme DD - Silica Project (Possible 10-15x Multibagger)

DD

Silica (very high grade) project next to the worlds largest Silica mine in the world.

Conclusion (at top for autists): DRX has project which can lead to 10-15x in MC with project fundamentals (with this project to possibly be expanded and another project on the way). International interest by holding larges stakes and mining in demand materials that are future proofed.

MC: 41m

Project numbers/valuation:

150% Internal Rate of Return (IRR)

CAPEX (how much project costs) 24m

CAPEX payback period (how long to return that 24m) : 8 MONTHS

Annual Revenue 80m, annual expenses 40m (estimate EBITDA 37 m)

Total EDIBTA 555m over 15 year life

What does this mean????

Firstly, start with capital to fund project is 24m, which is peanuts in the mining industry, but 8 months to get that money back is amazing and you will rarely come by anything like this. Easy to attract instituional investors and a bank loan. 37m EBITDA means at current MC we are looking at a P/E of around 1.1~1.5 which is peanuts and an average P/E sits around 10-15 (multi-bagger or 10-15x if number remain true)

Silica

Highly in demand product with supply chains in Asia (they cause a lot of damage in their mining due to where they mine) being hurt leaving gaps in supply chains. Used to make Solar panels (future proofed use), construction, automotive and foundry.

But there is more...

This project being next to the largest Silica mine in the world, it is a fair assumption to say that the amount of Silica they have estimated is an underestimate (as was with the largest mine it kept getting extended). So this can only mean more potential revenue,earnings and SP if this does happen.

Surely there cant be more right? Well, I havent even mentioned them having a 2nd Project. This is for Zircon (used in nuclear fuel, jet turbine blades ect...) 14 year project with IRR of 27% and CAPEX return of 2 years (for 135m).

These are all just icing on the cake and based of the 1st Project and no expansions I expect MC touching 500m (with their numbers given) but add those expansions and other project this can go even higher and become a big boy miner, and the 1st project can fund the 2nd.

Risks

All they need are approvals for environmental ect... This should not be an issue since they have strong support from Aboriginal communities and strong support at all levels of government for job creation ect.. Plus their Silica is super high grade so dont have to churn through so much sand. ( I believe these will pass right through)

Current Holders

Top 20 holders have 60% with international holders from China and Germany showing good signs plus mining boi Brian Flannery

Extras

Transportation set up, facilities to process have been finalised.

Production is expected bit more then 1 year from now as approvals come in and construction looks to start (Q1 2022). I strongly believe that this will start to gain some momentum, DRX is currently very low right now due to cap raise to fund developments and get us clsoer to the end game

dyor.... ask any questions and ill give my best answer