General comments/chat, page-12828

DYOR. Not intended as financial advice.
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Essentially the current PFS is annual NPAT $40M (ADN share) and this could easily push to $60M to $100M ballpark for DFS (particularly if they can secure sales for the concrete product).

CAPEX will be low and so this will have fast payback (around 15 months) which will then enable them to self-fund growth for other opportunities below:

• Development of Mt Hope deposit (paint/coatings/polymer market)
• Development of Hammerhead deposit (same applications as the first project)
• HPA
• Commercialisation of Nanotechnology (carbon capture and so on)

Peers are trading at an average P/E of 34.0.

P/E is a measure of growth sentiment essentially and ADN has plenty of irons in the fire for growth.




Imersys above will be ADN's closest peer in terms of markets, although ADN is more high tech with the carbon capture and battery applications. I can say for sure though that price sentiment will be at the upper-end due to growth ADN have in their strategy. If management keep delivering then price sentiment will remain high. That means P/E at 30.0+

Here's some numbers showing PFS and 50% increase on PFS and 100% increase on PFS. We just don't know exactly where the DFS will sit in terms of annual NPAT. Almost certainly it will be better.





Then alternatively a value on ADN based on resources. I calculated a heavily discounted value of $0.82 per share.

I calculated over $41B of resources in the ground ($2.75B discounted), based on info given in resource statements, announcements and presentations.



My underlying numbers for Great White Reserve (basis of PFS).



My valuation of Hammerhead Resource (Inferred)



My valuation of Mt Hope Resource (Inferred)