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Shara

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07/05/21

11:12

Post #: 53012300
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Originally posted by longwalker: ↑

but this is where the DFS is not focused, and the primary aim is being able to get a BFS funded from the assumptions of a DFS. talk of future industries might be good for speculative price action but not on getting this funded to mine.

the entity behind the funding of any decision to mine will not use these "pipe dreams' of markets in their calculations, they will simply ask the question show me the current demand of this product in the industry you describe?.

In fact they will critique the DFS and BFS put before them. this is why I ask a reduced output of only 25% of the PFS assumption, for the early ongoing years will impact the revised DFS NPV. Then the question to be asked is how long is "ongoing years" and what assumptions will "funders" make on a perceived ramp up of demand.

Add to that front end CAPEX for wet processing, even on a reduced output the CAPEX will still be a good portion of the ~$60M capex for many fixed overhead cost will need to be covered and don't work on economy of scale production.

for sale price well the assumption of the PFS was $700 in the NPV , the offtake was signed for $700 so given the 115kt p.a output is for the CRM which these relate i think it prudent as any "potential funders" will to use the $700 figure in the DFS for the NPV.

another key assumption from the PFS is the "build own operate" power supply by a third party, reduced production output assumptions may impact a third party investment to do this and so there is a risk the company will need to invest in its own power generation infrastructure, adding to capex.

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another key assumption from the PFS is the "build own operate" power supply by a third party, reduced production output assumptions may impact a third party investment to do this and so there is a risk the company will need to invest in its own power generation infrastructure, adding to capex.

OR NOT

ADN Price at posting: 19.0¢ Sentiment: Buy Disclosure: Held
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