MEP or ADN, page-105

Read the following thread on the ADN forums for background.

https://hotcopper.com.au/posts/48359792/single

Here's a breakdown of what ADN are doing and I've added a column to show where MEP fits in. It's not confirmed yet whether MEP are included in ADN's HPA strategy, however it is a reasonable probability if feedstock is sourced from the Great White Project. See this post on the ADN forums: https://hotcopper.com.au/posts/48364043/single

So at the moment an investment in MEP gives you exposure to 3 of ADN's initiatives:

1. The Great White PFS ( DFS due in December ). Gross margins > 50%.
2. Hammerhead Deposit ( Scoping Study anticipated in 2021 ). Gross margins expected to be 80%.
3. Camel Lake ( exploration drilling anticipated in 2021 ). Expect gross margins to be greater than 80%.

I think fair to expect #2 and #3 will deliver better project metrics and cashflow than #1.

My current expectation is the MEP's annual NPAT could grow to $50M to $75M ballpark by the end of the decade, based on the first project being $13.4M to MEP. That's adding Hammerhead and Camel Lake and excluding HPA.

Mt Hope is 100% ADN and ADN are also pursuing other industrial minerals opportunities.