I have spent months researching various stocks that seek to produce HPA and this is the best I can find. Yes ADN is doing well and I hope it continues but this project is so much further advanced and at 10m m/c represents amazing value and upside imo:
- JORC resource at high grade and massive tonnage
- PFS done with a very special IRR and NPV looking to produce 8000 tonnes per annum at $24,000 tonnes per annum costing around $6000 a tonne, a huge $18,000 per tonne margin
- 50 plus year resource
- demand for HPA is skyrocketing particularly 4N (99.99%) OR 5N (99.999%) and 5N is around $50,000 a tonne!
- this isnt a dso project where the raw product is shipped to china for them to use, the raw product here will be refined right here in WA and sold for massive amounts as outlined above. Why would you just ship it off to china fore $120 a tonne when you can refine it to HPA and sell it for between $24,000 and $50,000 per tonne!!
- Pilot plant sounds like it is been constructed and the actual plant itself will start construction within 6 months and then within 18 months revenue of approaching $200m per annum will be flowing in the doors!
- The main demand for HPA (high purity alumina) is LED's but what is going to cause a demand explosion for HPA is ev's as HPA is much needed in evs.
After all of that and more I had to take a position which I have done over the last month or so.
Anyone having a look at this I strongly suggest reading this Sydney Morning Herald article about the project......I dont know many small caps that have coverage from the SMH!
disallowed/business/com...ar-global-battery-market-20181128-p50j08.htmlAlso watch this PFS slide show from the MD
Also lots of proactive investor interviews to watch.
Again this has a massive high grade JORC, a PFS and is finalising a PP and BFS all prior to building the actual plant itself? An offtake must be close also?
Should be a very interesting ride!
