Coffee with Samso Episode 74 is with Allan Ritchie, Chief Executive Officer - Adavale Resources Limited (ASX: ADD)
The EV Revolution has thrown the world of "Battery Metals" into another rush for good assets.
Like any other industry, when the market is hot, great assets become hard to acquire. Adavale Resources Limited has its assets next to one of the largest undeveloped nickel assets in the world, with similar geology and geophysical signatures.
Allan Ritchie, CEO shares with us the long journey of the company to get to where they are now. There is no hiding from the fact that this is an early stage play but I can sense excitement in the tone of his voice and a good dose of bravado about the project.
What he did not say on camera is that management is driven by capital appreciation as they are not paid large amounts of salary. Their reward is in the shares that they own. It is not about burning cash with large salaries. This is a great strategy and one that is not seen in many ASX companies.
Global law firm Clyde & Co advised UK mining company, Kabanga Nickel, on a binding framework agreement with the Government of Tanzania for the development of the Kabanga Nickel Project.
According to its website, the Kabanga Nickel project is located in the north-west of Tanzania. It is touted as a multi-billion-dollar project. It hosts an in-situ mineral resource of 58 million tonnes at 2.62% Ni, containing more than 1.52 million tonnes (3.30 billion pounds) of nickel, a key ingredient for the making of electric vehicles. Kabanga will support a mine life of at least 30 years with further exploration potential.
Adavale has found itself at the right phase of a rising market. I recall my conversation with Scott Williamson on Producing Nickel for the EV Revolution - Blackstone Minerals Ltd (ASX:BSX), where he shared with us that nickel buyers are feeling the rate of demand rising faster than anticipation by the market. This is a great situation for the likes of Adavale as they move into discovery mode.
Of course, this does not mean that discovery is guaranteed but as we have discussed in many previous episodes of Coffee with Samso, exploration is all about good management, funding and good assets. The rest is a game of lottery. I feel that Adavale ticks all the boxes required. Now it is time to roll up their sleeves and put in the hard work and engage the truth machine.
Allan outlines a strong strategy and the milestones are there to be achieved. There is no hiding his expectation and with a market capitalisation of AUD20M in a strong market, the discovery would give shareholders many things to cheer about in the near future.
PODCAST
This is a good time to download the first Ebook (FREE) from Samso as it is all about VMS (Volcanogenic Massive Sulfides).
About Allan Ritchie - Chief Executive Officer
Adavale Resources Limited (ASX: ADD)
Allan graduated from the University of Technology in Sydney in 1986 with a Bachelor of Business and subsequently attained a post graduate Diploma in Applied Finance from the Financial Services Institute of Australia.
Allan’s distinguished career spans 30 years in both the energy and resources sectors, in investment banking and leadership roles in both private and publicly listed companies.
Allan currently serves as Non-Executive Director of ASX listed Hydrocarbon Dynamics Limited (HCD:ASX) and has previously served as Executive Director and Deputy CEO of HK Listed energy group EPI Holdings Limited (0689.HKEX).
Allan’s investment banking background includes structuring commercial transactions in the energy and resources sector. Senior roles include positions within Westpac, ANZ Bank, HSBC and BNP Paribas in Australia, London, New York and Asia Pacific.
Allan’s career achievements have been recognised several times in BRW’s annual poll of bankers.
About Adavale Resources Limited (ASX: ADD)
Adavale Resources Limited (ADD) holds 100% of the Kabanga Jirani Nickel Project (“the Project”) consisting of six granted licences and one application covering nearly 1145km2. These licences are adjacent and along strike from the world’s largest undeveloped nickel sulphide resource, namely The Kabanga Deposit which contains a measured, indicated and inferred resource of 58Mt @ 2.62% Ni (Barrick and Glencore, 2014).
The ADD licences are located along a trend of mafic/ultramafic intrusions known as the Kabanga Musongati belt and contain Nickel Sulphide ores and PGE concentrations.
Adavale Resources Limited also holds 100% of the Lake Surprise Project being three exploration tenements covering nearly 396 km2 within part of the highly prospective sedimentary uranium province within the northern part of the Lake Frome Embayment.
These tenements lie within a flat, semi-arid landscape located just to the north of the Flinders Range in South Australia. These include EL 5892 comprising 92km2 , EL 5893 comprising 167km2 and EL 5644 of 137km2. These are known as the:
Jubilee Prospect
Mookwarinna Prospect
Canegrass Swamp Prospect
The Lake Surprise Project Area is located in South Australia, 550km north of Adelaide, and 70km East of Marree. The company holds 3 tenements, EL5892, EL5893, and EL5644 with a total area of 396 km2. Adavale explored the original tenements in this area between 2007 and 2011 with 486 holes drilled in that period.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
Share to Grow: Your Bonus
Samso has just released an eBook: How to Add Value to your Share Portfolio
A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.
Keep us informed too!
Please let us know your thoughts and send us any comments to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google.