James Marsh has said that ADN will go it alone on HPA. The only...

James Marsh has said that ADN will go it alone on HPA. The only benefit to MEP will be if ADN chooses to use Great White kaolin.

Let's have a look at another Wombat777 spreadsheet - an update incorporating the paints & coatings BOA - showing numbers for ADN.
https://hotcopper.com.au/threads/ann-significant-binding-offtake-agreement-signed-for-great-white.6104312/page-362?get_post=true

We can quibble about a few things to do with AISC, CAPEX, interest expense etc but the numbers aren't going to be much different to what's below. MEP will probably pay ADN a small management fee for marketing etc but it's all in the rough numbers.

The really positive thing for MEP is projected EPS of ~3.7c. At a share price of 13c that's a PE of 3.5!

Would you be happy to pay that for first earnings in FY23? (FY22 starts in <3 weeks!) MEP is a BARGAIN!

Assuming a PE of 20, based on 2nd half FY23 earnings i.e. a full six months of Phase 1 production of 116kt showing a smoothly running plant and quarrying operation, gives a target price of 75c. Not bad for less than three years time, 6x Friday's close of 13c!

BUY BUY BUY!