General comments/chat, page-420

100 mill market cap is achievable for ADN by next year and potentially higher dependant on progressing towards production and the deals they do . Simply if they tick all the boxes and are set for production by next year i cant see this not being over 100 mill cap plus the added higher levels if say HPA JV agreements come into play.

I attended the LRT function yesterday where James Marsh presented. Again it confirmed to me what an opportunity this is as an investment in a company with potential to go into rapid low cost production. Firstly LRT stated they got into ADN as they see it as 10 bag potential and that 1 of their key requirements in investing is management and James and ADN fit the bill for both requirements with his experience of over 30 years and ADN they see as a great potential 10 bag+ opportunity.

Again James spoke of how keen the interest is from overseas parties who want the unique blend of halloysite/kaolin from ADN that cant be sourced elsewhere with 1 last mine elsewhere of halloysite running low. The wider uses for this material in traditional uses like ceramics but new age uses is growing so demand is strong with numerous parties wanting. Lets take 1 Chinese party that is keen for supply who want dry processed ore that they heat the ore at extremely high temperatures then add it to high cost decorative paint. Just 1 company who wants product in paint use but more and more parties wanting supply in ceramics but numerous end uses. Multiple parties interested in getting their hands on supply which ultimately puts ADN in a very good position. James stated he is off to China today straight out of Melbourne and then off to Europe meeting with many interested parties including the party who came out to Aus.

What hits here with ADN for me that i see as the major reason i see 100 mill+ market cap easily achievable is the low cost production path unlike numerous other mining operations i have invested in where capex is massive in the 100s of millions. We are talking about a dry processing plant that will cost around the 2>3 mill mark not 100s millions. I have stopped investing in companies with high capex models as how often do you see those opportunities actually go into production and if they do how long to raise that capital. ADN is a very compelling story with massive demand for its unique product and a low cost rapid path to production. I don’t see a better bet out there currently.