I have a little different opinion on some of your points. 1. DFS delay, agree. 2. HPA. Supplying the ADN feedstock to other plants for HPA production has not been planned by by company. This idea was being suggested by some posters on HC but that was just speculation. You are correct that the difficult part is in processing but good feedstock may make the processing a little simpler. ADN are talking about 2,000 tpa plant and the capex for such plant will be less than 10,000 tpa plants other companies in this field are talking about. Probably in the 80-120 million range. This could be funded by revenue from other products so I think there is a good chance of getting to HPA production. In a few years time. 3. Different products produced on the same plant all meeting stringent quality criteria. This is actually not that difficult to achieve with the hydro cyclone based wet processing plant as varying ore feed mix and playing with water flows allows wide range of outputs. 4. He talked about selling sand that will be a byproduct of ore being toll processed in China, this obviously changes the economics of DSO.
ADN Price at posting:
17.3¢ Sentiment: Hold Disclosure: Held
(20min delay)
