Business
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 a another rush for good assets. Like in any other industry, when the market is hot, great assets become hard to acquire. Adavale has its assets next to one of the largest undeveloped nickel assets in the world, with similar geology and geophysical signatures. Allan Ritchie 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 a early stage play but I can sense in the tome of his voice, a sense of excitement and bravado about the project. What he did not say on camera is that management are driven by capital appreciation as they are not paid large amounts of salary. Their rewards is in their shares that they own and not burning the cash with large salary. 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 their website, the Kabanga Nickel project is located in the north-west of Tanzania. It is touted as a multi-billion dollar project. It host 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 themselves at the right phase of a rising market. Since my conversation with Scott Williamson on Producing Nickel for the EV Revolution - Blackstone Minerals Ltd (ASX:BSX), where he share 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 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 its up to hard work and 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, discovery would give shareholders many things to cheer about in the near future.