ADT seems like a very interesting stock. Seems like it could have many positives going for it. Just listing down some points. Most here might be familiar but might help some new shareholders get an idea
1/ ADT article
Article on ADT debut – really glowing comments from the West. Very nice article to get new potential shareholders interested.
https://thewest.com.au/business/pub...adriatic-hits-the-boards-on-asx-ng-b88821921z
2/
Sandfire comments on ADT
Billion dollar ASX company Sandfire has 8% stake already, which is a positive, of course.
Extract –
“ASX-debutant Adriatic Metals counts Sandfire as a shareholder following its float this week. "Really interesting, love it, the guys have done a wonderful job and we look forward to their further exploration results on a high-grade zinc project [in Bosnia and Herzegovina]," Mr Simich said.
Sandfire spent $2 million for a 7.7 per cent stake in Adriatic.”
http://www.copyright link/business/...chest-for-life-after-degrussa-20180502-h0zkke
3/ Presentation
Nice presentation from company highlighting what ADT is about
https://hotcopper.com.au/threads/an...presentation-update.4165006/?post_id=32788174
4/ Low market cap and enterprise value
Approx 130.8 million shares @20cents = Approx 26.2 million market cap
We have 10 million cash. Enterprise value = around 15.3 million.
So we are pretty cheap if things go well.
5/ Funded for exploration
As mentioned above, we have 10 million cash and so funded for 2018 exploration
6/ Potentially world class polymetallic deposit
High grade deposit – zinc, lead, gold, silver, copper, barite. Also read above "West" article
7/ Non exec Chairman from IGO (Independence group)
Good to have Peter Bilbe from IGO which is a very well known diversified minerals company.
8/ Bosnia advantages
Plenty of advantages in Bosnia. Stable democracy, peace since many years, low costs, first mover advantage as mining restricted there since several years
9/Planned schedule
Veovaca JORC already exists. Maiden Rupice resource in Q1 2019.
Scoping study work on VEovaca and Rupice also will probably finalise by then. So we are not that far away from some good news.
10/ Peer comparison
Chart in presentation shows scope of further market cap compared to peers (market cap vs contained zinc)
11/ Current price at IPO price
Well, this can be interpreted as positive or negative depending on which way one sees it. People are getting a great opportunity to enter in at IPO price of 20c for what was an heavily oversubscribed IPO where I believe that many were scaled back a fair deal.
12/ Conclusions
Plenty of positives on first glance. Not recommending anything and not sure if I’ll hang on till JORC, sell mid way or maybe even sell tomorrow for a few pips.
Thought it was interesting to get an opportunity to
enter in at IPO price for such an interesting stock and thought that even if I decide to hang on for a very short time, there appears to be a good chance of a gain.
Some of the best returns are on mining stocks capable of
generating hype and which are in the initial stages, and with its high grade polymetallic project, ADT could have potential to have a fair bit of hype in the year to come.
Really very happy to hear any potential negatives on the stock, for a balanced debate, although at this enterprise value, I think people would be hard pressed to find too many negatives.
Cheers
(20min delay)
