I wouldn't be getting too carried away with this announcement....

I wouldn't be getting too carried away with this announcement. The real value in this company has always been the Lithium project in Argentina.

Whilst the iron ore announcement is very positive for the company, keep in mind that current forecasts are for only 100,000 tonnes of iron ore per month. This will generate revenue of $5m per month or $60m pa. Projected earnings are around $10m with ADY getting 50% of that. Take out tax and we are looking at projected profit of around $4m pa on current iron ore prices. With 862m fully diluted shares on issue, this project values ADY at around $50m-$70m or 6-8 cents.

All I would say is that this announcement mitigates further downside risk in ADY as the current market cap/market price is around my forecast levels.

I would not expect the share price to fall further from here.

Now we need Phil to show us that Rincon Salar is on track and then wait for share price to rocket.

Please do your own research.