its a must have monday morning, page-41

Hi everyone,

The fact that most of the revenue of ADY is going to eventuate in 2009 makes it hard to put a current valuation to the share price.

Looking at another miner on the ASX who has its main resource coming in production in March 2009 and with no current income like ADY but with a product in demand like ADY we have MOL.

MOL a molybdenum/copper miner has now a Mcap of $447 million (ADY $328)

MOL has earnings potential of $93 million in 2009 (ADY $165)

MOL has no current earnings (ADY iron ore $12 million per annum for 2008 and growing)

MOL has 1 income generating project (ADY has 2 projects)

MOL expect first production in March 2009 (ADY expects production from the Rincon Salar in june 2008 for Potash and december 2008 for Lithium)

So looking at both these companies and valuations we can easily see that ADY is not overvalued by the market but still has some catching up to do.

Although the companies have different metals, they both deal with a niece commodity being molybdenum and lithium as their main income earner.
If anything molybdenum can be seen as more volatile in price then say iron ore and lithium.

So I believe that even after the current run ADY still deserves a much higher rating compared with other valuations of miners who have advanced projects coming in production at even a later date and with less revenue compared to ADY.

So let monday come and sit back to enjoy the ride.

jojo