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Ann: Change of Director's Interest Notice, page-66

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Kikker1959

10,612 Posts.

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06/05/20

09:54

Post #: 44456665
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Originally posted by Maxi II ↑

AVZ continues to take positive steps towards development. Skin in the game, Director buying often a good indicator for a company’s outlook.

$10m placement(9% ownership) with no board seat attached + $5m options underwritten. $4-5m cash on hand.
All up $19.6m in the kitty for pre-production development and/or to slim down and tide over the macro events until market recovery. If the upcoming offtake discussions close with a prepayment this would add further cash.

The wildcard is that one could see other parties easily coming in for sub 9% stakes(without the need for Aust regulator approval) for a slice of the pie to add further development funds. And a big pie it is, projected to hold 1-1.5Billion Tonnes of Lithium in total.

The backdrop is an increasing strategic importance of critical minerals globally now. Even further Aust investment is possible. We saw Wesfarmers go for Kidman Resources in a big way. There is talk that Fortescue/Forest is looking at acquiring a stake in Greenbushes. Remember AVZ is Aust listed and owns 60% of this project. We have seen many JV Lithium projects globally including Greenbushes. So it would not be a stretch of the imagination.

Greenbushes has long been seen as a leader of Hard Rock Lithium production, but its depth and finite mine life will mean alternative sources will need to be lined up. There just happens to be a project (comparable to Greenbushes, World Largest in class JORC proven), that is making its way towards development. In doing so will ensure a generous and consistent supply of a new and significant energy source of the future. They will be able to distribute the lighter materials such as sulphate at a lower cost.

Economies of Scale + economic viability as per recent DFS. Having a Lithium resource of this much high grade, consistency + demonstrated Tin and Tantalum recovery, gives a lot of options.

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I agree with most of your post, although the statement that its not much of a stretch of imagination to have a large Aust Coy investing big in the Congo made me laugh. The big Lit investments were in WA and will continue there. NOT because there product is better or has lower OPEX but because of RISK. The biggest concept holders miss here as they see Africa with Western eyes. Its the wild west . Only China invests heavily in the Congo. When and if finance comes thats AVZ's best change IMO.

AVZ Price at posting: 6.3¢ Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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Ann: Change of Director's Interest Notice, page-66

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