For any calculations, ensure that you adjust for ADN earn-in for up to 75% of the project.
For figures and assumptions you have given the ADN share of profit would be USD $13.5M. So here you are assuming a margin of USD $90 ( our AUD $130 ).
Divide by exchange rate $0.69 and ADN share of profit:
- USD $13.5M / $0.69 = AUD $19.57M.
Then assume a nominal 33% to sufficiently cover taxes and royalties:
- NPAT = AUD 19.57M x 67% = AUD $13.1M.
Assuming a P/E of 10.0 this would equate with a Market Cap of $131M.
IMO the exercising of the oppies has strong potential to provide the funds (up to AUD $8.5M) to cover all the CAPEX and working capital required to get both a DSO or a Dry-Processed Ore operation up and running.
Remember that they plan to use contract mining so that helps to keep capital costs low.
For a Dry-processed Ore Operation they only need to add a lump breaker and a heater-classifier mill (I've circled the relevant part of the flowsheet). Simples
View attachment 1583602This is the reason our MD has been in the USA ...
https://www.asx.com.au/asxpdf/20190528/pdf/445f0rb6ly8l5f.pdfView attachment 1583617
