Short Term Trading Weekend Lounge: 20-22 Sept, page-30

STTCOMP MEP FA LONG
Current SP 6.0c
Cash $3.9million.

MEP is the JV partner to ADN and their kaolin-halloysite project. I tipped this in August and it fell just short of a win, so I’m going in it again. I currently hold this stock as well..

A quick look at the Poochera JV value base from ADN’s perspective gives a compelling argument for MEP to push higher

ADN Cash currently 1.6 mill in bank, 650,000 cash for Rover sale, plus option conversion of 700m options at 1.2c.
Total = 11million. Given they’re in the money I’ve counted them.

Enterprise value of ADN = (2.05bill (fully diluted) x 6.8) - 11million cash
Total EV= $128 million

Let’s say ADN JV share for Poochera is currently representing 65% of their EV value, which I think is pretty conservative.
The JV value for ADN is (128millionEV x 65%) = $83.5 million (75% share)

MEP 25% share using the above gives our stake a value of $27.8 million

MEP EV value current total (334mill x 6.0) - $3.9mill cash
Total current EV = $16.2 million.

A deficit of $11million alone excluding any value associated with Jericho and our other JV interests.
If Poochera JV was the only project based on the above we should be at a SP of 9.5 cents to have any correlations to ADN current value