ADV 1.79% 13.8¢ ardiden ltd

Ann: Trading Halt, page-34

  1. 1,345 Posts.
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    Actually looking back on your posts, it seems likely that you don't understand the difference between an analogy and a comparison, so I'll help you (and @you30ate) through this one.

    Lets say you want to open a business, and you want to sell drills.
    Now, you go about finding the right manufacturer, sales channel, fulfillment company, and marketing to do this. At the end, you have a product that you can sell.

    Using the example above, lets say you have sold your drill inventory, but there are more opportunities to sell, so you order some more. At the same time, you hear that the market also wants to buy saws, and grinders. Being the good business person you are, you decide to also order in saws and grinders to start expanding your business and protect against any shortfall in the sales of drills.

    After a while in business, you have a health turnover of your stock that you've supplied to the market, and you're making good money.

    Now, if we look at the example above, we can start to see some similarities with ADV. I'll help point these out to you and you30ate.

    Keeping it simple, ADV have an opportunity to sell a few products, e.g. Lithium, Silica, Cobalt and Nickel. Brad (CEO of ADV) has had a good look at the market, and figures his Lithium is among the best quality you can buy, so has decided to push this as the #1 offering, or his 'hero' product.

    Great news for Brad, as a company has indicated they want to buy! "Hooray" yells Brad, but as a good business person, he is listening to the market and knows that they want to buy other products as well, and he knows he can provide this.

    Whilst he gets his team to focus on getting the Lithium ready to sell, he is looking for the next products that the market will want, so that his company can grow and remain relevant. To do this he needs to invest in site tenements (as Brad runs a mining company) and have these drilled to show value to future customers.

    Hopefully the above explanation has helped you and you30ate understand my earlier comment:
    "Acquiring further tenements to develop is akin to Apple undertaking R&D for their next game-changer product. I would be unhappy with ADV if they did not do this."

    Another way of saying this would be:
    "Acquiring further tenements to develop is akin to a mining company acquiring tenements to develop. I would be unhappy with ADV if they did not do this."

    Please let me know if this makes sense, thanks
 
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