If ADN successfully implement a low CAPEX path to production of > 250kt of dry-processed ore, I think numbers stack up for 5c to 10c within 12 months and 20c to 30c once dry-processing is up and running. IMO and DYOR.
Importantly, note that the GOR share price achieved 50% of their production share price potential in 2016. Only now they are a week or two from first gold. It shows though what can happen when the cashflow potential is priced in.
Difference is ADN aren’t building a $300M plant. A good chance our plant could be under $5M.
Really puts into context the interesting opportunity we have here just because of potential cashflow from ADN’s premium feedstock strategy. A Kaolin/Halloysite producer generating cashflow on similar scale to GOR which will become a significant gold producer very soon.
Development Risk for ADN’s dry-processing is unlikely to be anywhere near that for a large scale and complex gold project.
ADN Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
