Agree there is disappointment by AVZ and holders on not receiving $14m to progress. But lets see if FIRB just did AVZ big a favour. A not for sale sign. Not selling off Aussie equity. “Don’t sell the farm” (assets owned) is the common call of the people. And this project is not even in Aust.
Plan Bs already in progress, plus other options.
The announcement does not say Yibin has walked. It reads: “Subsequently, Yibin Tianyi has engaged with the Company to negotiate alternative methods of investment in order to advance the Company’s
Tin Project (“ManonoProject”).
The Company also advises Yibin Tianyi are still willing to progress the current
advanced negotiations for finalising an offtake agreement for lithium products
from Manono.”
So offtake prepayment funding would mean be a paying future customer, not an equity owner.
Examples of offtake prepayment.
Galaxy 18/5/16 – Offtake $9m prepayment.
Core July 2018 $35m and $20m, offtake prepayment.
Other options, which are possible given the number of interested parties awaiting DFS, the sheer scale and economic viability.
Non Chinese parties may also show their hand. This could be Aussie eg. a WES, BHP, RIO, FMG.
Eu, US, Japan, Korea. (Offtake, not placement)
I’ve held overseas listed before, updates can become more obsure, less accessible. There are ChessDepositaryInterests or CDI that improve access. If a straight re-listing I gather CGT rollover in many case would be possible.
Cheap opportunistic takeover chances now reduced. AVZ holders have generally wanted such an outcome. Also the chance of hostile on market buying too from parties now seeing an opportunity.
AVZ has no debt, nor high cash burn. And just released a hot “definitive” report card. 1.5 years project payback. $6bn AUD profit after tax over a conservative 20 year mine life.
400MT high grade JORC resource with upside to a potential 1-1.5billion tonne. World’s best in Class undeveloped resource comparable in scale to Greenbushes (which is now controlled by Albermarle-Tianqi). Do Aust wish AVZs majority ownership in such a valuable project to be given away and developed overseas anyway. If Lithium is so critical, it would make sense for Aust to maintain its ownership of such a high potential resource. Needs the right collaboration and funding to develop.
Quite a few new local projects in the pipeline. Article from 24 April
https://www.resourcesrisingstars.com.au/news-article/riches-be-had-amid-lithium-reset
Core in NT as well, 3 April.
https://www.australianmining.com.au/news/core-lithium-gets-final-approval-for-finniss/
Any weakness will be bought up on Monday IMO. Projects of up to1-1.5billion tonnes Lithium are rare and don’t just get forgotten about.
