Australia's largest stock trading and investment forum Australia's #1 stock forum

ADN

6.25%

1.7¢ andromeda metals limited

General comments/chat, page-25875

First 25875 Last

Share
Profile

Follow
Novac

6,452 Posts.

1239

16/08/21

10:28

Post #: 55314520
Share

Originally posted by szopen: ↑

My take on potential risks.
Unrealistic expectations of investors creating volatility is probably the greatest risk.
Share price being pumped up to be shorted again is second one.

What I see as unrealistic expectations?
DFS showing that everything will happen very fast. It will probably show that things will happen much slower than expected by many.
Timeline to profits. Break the ground on 22/02/2022, start site preparations and build infrastructure/services, start processing plant construction, finish construction, start mining and processing, start shipping finished product. When we remember that we don't have the plant designed or equipment specified yet (flowsheet is not plant design) and no funding arrangements for most of the plant I would guess production in middle of 2023 is realistic. Some of the equipment will have long lead times. This is for ceramics and coatings products, the bread and butter of this business.

Plant design relying on generators (trucking a fair bit of diesel) and on trucking water, the last one is a worry for wet processing plant.

Too much hope placed on revenue streams other than ceramics and coatings.
HPA production. I don't see AEM in the same light as many people here. As far as I understand they have bough HPA plant in Canada and still have not got it going so they are not a "leading HPA producer" of any sort. There is a reason why other hopeful HPA producers in Australia are still in the "hopeful" stage. The proposed plants need large capex and while in theory they will be able to produce HPA cheaper than current process it's still not proven. I hold shares of FYI and A4N.

Carbon dioxide capture and storage.
I understand how using halloysite we can create materials that will perform very well at lower cost than currently available. There are quite a few applications for such materials. Use in submarines is a good one as it shows that while the material may be very effective the total tonnage requirements are not very large.
Carbon dioxide capture, storage and conversion can make sense only if the conversion part is feasible. At this moment in time it is not feasible due to energy balance.

Hydrogen storage.
This has potential but only when hydrogen production and usage will be reality. Still long time ahead.

Concrete. Good potential but we are talking about industry very resistant to change. From my understanding of how concrete industry works the profits are almost all in quarrying with concrete production and distribution running at very low profit margins. This keeps people from starting new concrete companies.

I think having realistic expectations is important. While my overall position in ADN is in red I don't stress about it and I'm reasonably confident that this is a good investment.

Expand

AEM are currently producing HPA 5N daily. Not in large quanitites but the plant is working and successfully producing 5N

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

0 Great analysis

Reply

Top Stories

BYH

Bryah gains $408K government rebate for work on copper target Narracoota

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within

AI stocks: What to expect in 2024-25

WC8

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

IVR

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

There are more pages in this discussion • 18,219 more messages in this thread...

First 25875 Last

Add ADN (ASX) to my watchlist

(20min delay)
Last 1.7¢		Change 0.001(6.25%)		Mkt cap ! $52.87M

Open	High	Low	Value	Volume
1.6¢	1.7¢	1.5¢	$102.0K	6.172M

Buyers (Bids)

No.	Vol.	Price($)
2	615000	1.6¢

Sellers (Offers)

Price($)	Vol.	No.
1.7¢	980592	1

View Market Depth

No.	Vol.	Price($)
2	615000	0.016
47	10009430	0.015
14	2591049	0.014
7	2633923	0.013
6	1655833	0.012

Price($)	Vol.	No.
0.017	980592	1
0.018	3062774	10
0.019	3659762	9
0.020	1712926	15
0.021	1397619	3

Last trade - 16.10pm 16/07/2024 (20 minute delay)

ADN (ASX) Chart

General comments/chat, page-25875

Bryah gains $408K government rebate for work on copper target Narracoota

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within

AI stocks: What to expect in 2024-25

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

General comments/chat, page-25875

Top Stories

Bryah gains $408K government rebate for work on copper target Narracoota

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within

AI stocks: What to expect in 2024-25

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News