Nanotech applications etc. Anything that will be discovered will need to find a market and be commercially viable against all other competing options - alternate or otherwise. I understand that there might be all this potential, but I feel that this is an infancy and may take years to come to any meaningful commercial outcome... Re use of Nanotubes in Lithium Batteries, I would really like to see a collaboration with a major battery manufacturer. Considering EV’s are the future, I would expect that a battery manufacturer would be very keen to be involved considering the potential upside.
HPA application. Based on the demand, relatively low processing required and income potential from this product. Why isn’t there more focus on this product stream?
Concrete and polymer products. If I recall correctly, wasn’t the DFS delayed to incorporate the concrete product? As of last week’s announcement, this will now form it’s own feasibility study with the DFS to focus on the ceramics market. No timeline on the feasibility study or update on the commercial application testing of these products was provided. By providing little information / updates it keeps expectations low, but I hope these two potential products don’t get forgotten about....
I have read the various post from GIGAchad... Putting aside all of the back and forth etc, I was very interested in the comments that were made from, what appears to be, someone who may have been an SME on concrete. Beyond the information that has been published by ADN to date, it would be great to have a Cost Benefit Analysis comparing current concrete additives to ADN’s additive. Early days for ADN’s additive, but would / could still be valuable. Undertstand that ADN will publish a feasibility study in the future, but I feel some of the SP appreciation took this product stream into account with the expectation that it would be incl in the upcoming DFS as per JM’s previous advice. I also wonder whether the commercial adoption of ADN’s additive will be a long road. If we had significant interest from potential customers it may not of been excluded from the upcoming DFS. The expectation with the incl of the concrete additive in the DFS was that that the expected revenue / profit would be considerable; potentially more than what could be achieved from the ceramics market.
Ceramics. I understand the LOI’s and the current BOA for 5,000 TPA. The LOI was signed in 2019 and the first product that will be supplied to this client will be sometime in 2022. Was anybody else expecting the BOA to be for more product, even after the first year of supply? I expected that due to diminishing global supply and growth within the customer’s business, they would be looking to secure more supply. Perhaps they have a few different suppliers they use to de-risk their supply-chain and ADN is just one of those suppliers, but I was expecting more.
Whilst the LOI’s far exceed initial supply, the majority were signed with Chinese companies. Is there any hesitation from these companies to sign BOA’s considering the trade tensions between AU/CN? ADN are de-risking potential customers by looking further a field, but if those customers already have supply and after completing testing and reviewing the commercials around ADN’s product it’s not commercially viable, then it’s unlikely they will be a customer - for now.
DFS. The DFS will be to a bankable level and will focus on the economics of setting-up processing on site, which I am for. But I am concerned that there will be another CR causing further dilution, which leads me to wonder if / when share consolidation may also occur... I expect that expenses will increase coming-up to production, especially with the various studies, testing, marketing etc going on. I thought at some point we may acquire a competitor, but with such a significant resource why would that be necessary at this stage. But if/when a CR does occur, will retail be incl? Considering retail have kept the lights on to date it would be rude no to, but the decision will most likely come down to the advice from the Broker completing the CR.
I don’t comment often, but I after kicking around the above for the last week I was wondering whether anybody else had similar thoughts.
ADN Price at posting:
34.5¢ Sentiment: None Disclosure: Held
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