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AVZ avz minerals limited

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Roller62

8,980 Posts.

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07/02/20

13:55

Post #: 42803152
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Originally posted by Mining8: ↑

Global Lit(the litmus test of the lithium industry)will potentially make way more out of AVZ!... a lot more catalysts to come that PLS have already ticked off.... PLS is struggling because of inferior product, producing in a low prices environment, production costs huge because of poor recoveries.

Interestingly Global Lit bought a large amount of AVZ shares recently.... from zero to 44.4 million, a substantial purchase because they can see AVZ as a viable investment. They actually added to the pot during AVZ's recent 60% rise, and took none off the table even though they could have made a substantial profit because they can see the many significant short term to medium term catalysts ahead!

It is to be remembered that Global Lit bought the bulk of their PLS when prices for lithium were higher in a producers market and this cannot be said right now!

The advantage for AVZ is they do not have to endure the costs associated with producers in the current environment. They will be producing later when it is predicted the demand for premium quality lithium and cheaply produced to battery spec(AVZ) will be high, and lithium prices will be consequently higher, all corresponding to the electric vehicle/energy storage revolution getting into full swing. Importantly during this time to production(pre-production) to the sweet spot for lithium prices AVZ will have many SP catalysts to tick off that PLS have already been through, so there is a great opportunity for share price appreciation in this period. What also excites me is the deals we are doing right now. For instance we have an imminent binding offtake agreement with Yibin Tianyi which plans to be one of the largest lithium hydroxide producers(new generation batteries) in the world that will supply CATL(the largest lithium-ion battery producer in the world).
Nigel Ferguson, Managing Director of AVZ:

“Yibin Tianyi’s intention to become one of the largest hydroxide suppliers in China certainly
compliments AVZ’s vision of developing the largest hard rock lithium deposit in the world.”PRESS HERE

WHOSE NEXT???

Funds will favour producers over explorer/mine developers so what is significant about the Global Lit ETF(the litmus test of the lithium industry) is that they made a very significant investment in AVZ pre-mining! The same cannot be said for the over-hyped LTR whose main ore body is 200-400 metres under the ground(good luck with that)-(AVZ-at and close to surface), and MLL whose initial metallurgy showed they had to throw everything but the kitchen sink to bring its product up to spec with also an unrepresentative sample they ground to dust(moisture issues) to hide the iron.

When you compare us to these other companies you can see we are way, way, undervalued!

Deboss mentioned that potential large investors will be visiting Manono with Managing Director Nigel Ferguson. This fact together with increased activity of AVZ at conferences in 2020, and that AVZ have arranged meetings with shareholders in every major capital city tells me that AVZ has something more concrete to sell, and this is borne out when you look at the short term catalysts ahead.

Short Term SP Catalysts:

-completion of metallurgicals(will potentially show further how cheaply and easy AVZ spodumene can meet new generation battery grade specs)

-AVZ increasing stake from 65 to at least 75-85% increasing economic bottom line and better positioning AVZ for funding/offtake

- offtake(Chinese-Yibin et al./Non-Chinese)

-AVZ tax holiday

- DFS Q1 2020-90% complete

-funding(Chinese/Non-Chinese)

- SP moving up further on Global Lit ETF recoverynow above 30!

-Global Lit( the litmus test for the lithium industry) increasing AVZ exposure with now 44.4 million AVZ shares which they have not sold despite an up to 60% increase in the SP which tells me they are waiting and are confident for full SP appreciation with the near term SP catalysts in the pipeline.

-AVZ now being exposed more at conferences(fund managers/soph exposure) as we near/complete DFS

-major potential investors will now be visiting the Manono site

AIMO

Expand

We all know how much Global X has invested in PLS - sadly it's value has been going down lately. I have been posting the plot of the Global X EFT weekly.

The problem with hard rock producers at the moment, is that most of them are losing money because the Opex is higher than what what they are being paid for the mined product. This is especially true with PLS because their reserve has a lot of impurities that need filtering out.

AVZ is in a good spot because they do not have to produce in the current market conditions. In two years time as Europe starts to ramp up EV production, lithium demand will be increasing as will be the lithium price. AVZ will start selling their premium quality lithium at a low Opex thus increasing profits.

AVZ Price at posting: 6.5¢ Sentiment: Buy Disclosure: Held
16 Upvote

3 Great analysis

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