A substantial factor for me concerning metal prices is the USA has something like 10 Trillion of debt that needs to be refinanced over the next 12 months. Critically, this is at a time when the world is moving away from the USD and subsequently who is going to have to buy a large proportion of that debt? The Federal Reserve course. Essentially, they are going to have to print and debase their currency. In this scenario the USD will likely go down and precious and base metals, measured in the falling purchasing power of the USD, will go up substantially.
ADT is sitting on an incredible high grade suite of metals that once at full commercial production is going to be worth a ship load in the economic scenario above. Hence I completely agree, let ADT ride because there is substantial upside for this company over the next 12 to 24 months.
I'm sure the likes of our friends at Dundee and other potential suitors are aware of all this hence the move now. Shareholders need to be aware of the unrealised value that Adriatic still posses and the likelihood of a substantial value re rate should it be allowed to 'ride' over the next few years. Shareholders are selling this unrealised value in any takeover offer and in my mind, for it to be favourable for us, it needs to be a very substantial offer to compensate for this.
ADT Price at posting:
$5.28 Sentiment: Buy Disclosure: Held
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