Seriously anyone who thought we were going to have a TO before a jorc based on 8 drills and historicals were deluded. Further unless people want AVZ to be sold at 30c, the company needs to prove up the 1.5 plus billion tonnes and increase confidence to then command the premium price of 70c plus. That will make the 60 percent of avz worth 1.5 billion. Hence it is logical that the conceptual target needs to progress to one of increased confidence that a jorc might provide. Now as long as the results come through the Chinese will make extra commitments. Now avz could have waited hoping for the results to cause the sp to rise and do a raising. However this would cap the sp as investors would realise that more money is required to for phase 2. Now the coast is clear with no delays between phase 1 and 2. Obviously I their discussions the Chinese have made it clear what they need to proceed with further commitments - infer what you want but it means there is a specific goal to appease the Chinese. Is this a TO or JV? Who knows.
In the meantime, with more visuals set to come through, and cantor involved (a major financial service firm) with 1 client having 3.2 percent, does one think that they will burn their client on a silly investment when there are many options?
Let the absorption continue at this levels - I’m part of it. I sold out fortunately before last close because of the gap and TA. However am now loading up. In the short term who knows where we could go but I know there are many catalysts to come.
AVZ Price at posting:
27.3¢ Sentiment: Hold Disclosure: Held
