My investment case for ADN, page-2

ADN'S OFFTAKE AGREEMENTS.

In the distant past, ADN announced some offtake agreements, which appear to now be redundant. Speculative ASX companies often announce "binding" offtake agreements that come to nothing. I guess there are often various escape clauses; including simply if a speculative company has not commenced mining activities.

ADN'S current investor presentations appear to refer to four binding offtake agreements, which appear to underpin ADN's proposed Stage1A development. In other words, if ADN can profitability produce 240,000 wet tonnes (or 216,000 dry tonnes) over the first three years, this would probably reassure lenders that ADN can repay the AUD$60M in debt finance it is seeking. It appears 240,000 wet tonnes of sales can ordinarily (ignoring extra start up costs) generate around $74M in cashflow over the first three years; using the sales prices & operating costs found in the 24 August 2023 DFS.

The above said, some of ADN's offtake agreement refer to a five year period; thus more reassuring to financiers than merely three years.

Note: some of the offtake announcements say the offtake pricing is superior to the pricing used in the 24 August 2023 DFS. These offtake announcements are below.

Note: some actual product pricing was in the 6 April 2022 DFS (below).

Click on any of the slides below to increase their size & readability.





https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02828716-2A1536150



https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02763912-2A1500487



https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02726683-2A1481477




https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02674211-2A1453927





https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02507548-2A1367308