AVZ (ASX) Ann: AVZ Minerals hits 284.47m @ 1.52% Li2O

Originally posted by Bluegoose ↑

There is no lack of understanding from non-holders. I am one of the "dumb" non holders.

But I am watching AVZ for fun and interest and I don't plan to invest anytime soon.

I think the market and the non-holders understand perfectly well - hence the share price is going nowhere at the moment until they address the real issues.

- Yes, they have an amazing deposit - if only it weren't in the Congo!!!!
- No it won't crash the Lithium market if it comes online - the market can easily suck up this resource
- No it won't make other Lithium companies non-viable - In countries that support mining with minimal royalties and tax incentives, good infrastructure and great technology - this resource in the Congo will likely cost MORE to extract and ship to end users. How many bulk ships go between the Congo and Asia / Europe?.

I have learned the hard way that a good resource in Africa is often worthless. At any stage the government can change it's policy or some corrupt government official can demand a 50% tax or have the workers go on strike for their own personal gain.

It's a nice deposit and if the Chinese can work out a way of exploiting it then it may have some value - even if it is a very risky proposition.

I hold about 5 Lithium companies in various stages. AVZ is not one of them and is unlikely to form part of my portfolio for the reasons above.

But I do wish holders all the best and hope they can find a pathway to production. The share price will only move up if they can address the major issues - which is clearly not Lithium grades or intercepts.

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Great analysis. I used to hold AVZ - got in around 27.5, sold some at 33c, got out around 23.5 (about break even overall), because I could see the problems mentioned above and the potential for a consistent downward spiral. Have kept an eye on it because it does have potential - if only it wasn't in the Congo! Good luck to all shareholders - I hope it comes good for you. As always make your own decisions when you comes to shareholding and do your own research.