Running Commentary on the SP Movements., page-5178

CATL is going to IPO without a supply agreement for lithium. They need an agreement ASAP to enhance their value proposition & AVZ will give them significant clout and add billions to their market value. CATL gets AVZ and China controls one of the world's most strategic commodity. As Kristian de Groot says, "it's a no brainer". In fact, CATL executives have almost been living in the DRC in recent months. That said, they will have to fight off other suitors to get their hands on this prized possession. Which only means one thing for shareholders! It also means, there's plenty of opportunity for non holders to buy in as it's not too late. A back of the envelope calculation. PLS has a market cap of $1.5B and yes, they're de-risked and 6 months away from production. AVZ has at least 12 times the resource of PLS which would value it at $18B. OK, let's allow a 90% discount factor for the sake of it - allow for sovereign risk, lack of JORC, infrastructure and mine development cost, ebola, etc etc, it still values AVZ at around $1.8B or $1/share. Is the discount factor too high? Probably, but I'm just being your devil's advocate and also not allowing for the tin & cobalt resource. If some think 30-31c share might be frothy, this baby still has legs and plenty of them. For the record, I watched Fortescue run from 5c to $100 over a few years & Qld Gas (CSG) go from a penny dreadful 10c stock to a buyout at $5.75/share by British Gas. Enough said. Enjoy the ride if you're holding. If you're not, still plenty of scope left to make some serious coin. Just my humble opinion & not a recommendation per se!