ADN is valued for the ability to build a good business with low cost, low risk, low dilution and then quickly move to self-funded growth. The market is factoring this into price sentiment.
Whilst ADN get a strong foundation for the business in place with the first project they can progress strong opportunities in parallel ( Paints & Coatings, Concrete additives, HPA feedstock ) that they can quickly turn on the tap for growth and diversification of revenue streams ( a sensible approach in any business ). All of these are great opportunities without looking at the blue sky Halloysite Nanotube applications.
What sort of scenario would most investors prefer?:
ADN
Others (many mining projects in this category now - working on DFS and then moving to financing)
- Unique high quality resource ( business moat )
- Stable / steady price growth of industrial minerals ( particularly kaolin )
- Very low capex ( $50M to $100M ) relative to market cap
- Fast payback ( 15 months from start of works on site )
- High margin ( around 50% )
- IRR 175%
- 11 months to operations on site, ~18 months to first revenue
- Low strip ratio
- Low technical complexity of plant
- Short commissioning period
- Low dilution of shareholders in time to achieve payback
- Can move to growth mode within 15 months of operations on site ( about 25 months from now ).
- Spot commodity ( high competition for some markets )
- Volatile spot commodity pricing
- High capex ( $300M + ), high debt burden
- >= 3 years payback
- Margin less than 30%
- IRR < 50%
- 2-4 years to construction on site ( so ongoing dilution )
- High strip ratio
- High technical complexity of plant ( and hence high risk )
- Long commissioning period
- High dilution of shareholders in the time to achieve payback
- Need to pay off debt burden ( 3+ years ) - 5-7 years for growth allowing for time to get studies complete, financed, constructed / commissioned, achieve payback
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Last
1.2¢ |
Change
-0.004(25.0%) |
Mkt cap ! $37.32M |
Open | High | Low | Value | Volume |
1.2¢ | 1.3¢ | 1.1¢ | $428.6K | 35.87M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
15 | 4187079 | 1.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.3¢ | 2602727 | 10 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
15 | 4187079 | 0.012 |
43 | 13646630 | 0.011 |
29 | 11082004 | 0.010 |
8 | 1771221 | 0.009 |
3 | 1245000 | 0.008 |
Price($) | Vol. | No. |
---|---|---|
0.013 | 2602727 | 10 |
0.014 | 2793685 | 7 |
0.015 | 2369476 | 6 |
0.016 | 1399522 | 2 |
0.017 | 757250 | 3 |
Last trade - 16.10pm 21/08/2024 (20 minute delay) ? |
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MD - Shanthar Pathmanathan, Geologist - David Trabert
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