Reality Kicking In, page-126

"FFS, look at the DFS." - Scarpa

What was the SC6 price used in the DFS? You mumble 600. What is it exactly? Say it.

Every other Lithium asset is being valued at current prices. IMHO, the AVZ DFS is a flight of fancy, a shareholder soothing document to maintain cushy high paid employment. A public statement from a Company with no financial assets is not legally tangible. If the statement came from a BHP or the like, then YES.

AVZ is like a teenager with no job or assets fronting a Bank for a loan and saying, "I'm gonna make a lot of money, give me a loan". He then presents an envelope which has some stick men drawn on the back, with lots of $ signs.

Don't make me laugh ... and don't swear!


No one has effectively refuted my valuation.

No one has answered the question yet: "The DRC Government own 30% of Manono. Another Company has a 10% interest and AVZ has the remaining 60%. So how much of that 60% is an incoming equity participant going to get for their $A1b?"

Do you really expect someone to pay $A1b for 50% of Manono, notwithstanding the opportunity cost, EPC, Production and sovereign risks of doing so?


Greenbushes spoke publicly of the difficulties in mining Spodumene in 2017. MIN (Mt Marion), GXY (Mt Cattlin), AJM and PLS can all attest to this. They had Australian engineers working in familiar conditions. Good luck in Africa with EPC, not to mention infrastructure development. Do you really think AVZ will go to production faultlessly?

How much has the AVZ BOD's budgeted for cost over runs, EPC stuff ups AND working capital? Look at what happened at Nemaska. Tianqi is financially failing even though it owns blue ribbon assets like SQM and control of Greenbushes. Yet you think some financier is going to jump at the chance of providing $A1b+ for 50% of Manono ... in this environment???

Do you really believe this to be true? Will Bolivia be developed?

You can get educated about PLS here:

https://hotcopper.com.au/threads/good-news-bad-news.4835087/page-5365?post_id=44252316

Note the refinancing at 1Jul20 to alleviate cashflow. Note the last Quarterly Report talked of costs lowering to USD270FOB. Note Stage 1 offtaker General Lithium opens its new LiOH facility later this year. Note all the strategic investors and offtakers who are ... well ... an AVZ shareholders wet dream (as Elphamale is wont to say)!