ADN 8.70% 2.1¢ andromeda metals limited

General comments/chat, page-106

  1. 11,249 Posts.
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    For any calculations, ensure that you adjust for ADN earn-in for up to 75% of the project.

    For figures and assumptions you have given the ADN share of profit would be USD $13.5M. So here you are assuming a margin of USD $90 ( our AUD $130 ).

    Divide by exchange rate $0.69 and ADN share of profit:
    • USD $13.5M / $0.69 = AUD $19.57M.
    Then assume a nominal 33% to sufficiently cover taxes and royalties:
    • NPAT = AUD 19.57M x 67% = AUD $13.1M.
    Assuming a P/E of 10.0 this would equate with a Market Cap of $131M.

    IMO the exercising of the oppies has strong potential to provide the funds (up to AUD $8.5M) to cover all the CAPEX and working capital required to get both a DSO or a Dry-Processed Ore operation up and running.

    Remember that they plan to use contract mining so that helps to keep capital costs low.

    For a Dry-processed Ore Operation they only need to add a lump breaker and a heater-classifier mill (I've circled the relevant part of the flowsheet). Simples


    Screen Shot 2019-06-01 at 2.30.20 pm.png

    This is the reason our MD has been in the USA ...

    https://www.asx.com.au/asxpdf/20190528/pdf/445f0rb6ly8l5f.pdf

    Screen Shot 2019-06-01 at 2.34.35 pm.png
 
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