AVZ 0.00% 78.0¢ avz minerals limited

Running discussion on SP, page-30029

  1. 6,963 Posts.
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    In the DFS the following on page 94:

    2.3
    Lithium Hydroxide Production
    AVZ acknowledges that due to the above average transportation costs of low cost SC6 product from site to port, the natural opportunity would be to convert more of the SC6 converted to Lithium Sulphate or to Lithium Hydroxide on site and then ship a smaller quantity of higher value added product, at significantly higher selling price from site to client.
    AVZ’s assessment is that producing Lithium Hydroxide from day one would be a challenge and that starting out along an incremental product production route would be a better fit for the MLTO organisation, which is a start-up mining operation.
    AVZ is not averse to revisiting the opportunity of producing Lithium Hydroxide once the MLTO is stabilised and operating in the DRC.
    It is fully understood that this next step will continue with that sustainability.
    It is envisioned that MTLO will always be, as a minimum, a two product producer as some of the offtake agreements are likely to be for SC6 only and others will be for Primary Lithium Sulphate (Li2SO4) and the third product would be Lithium Hydroxide (LiOH).

    I hope this helps.
    It looks like AVZ has and is considering all options.
    Rome wasn't built in one day, AVZ first has to learn to walk, before it can sprint.
    I am already happy when the plant and transport operation runs smoothly say by end 2023.
    Earlier and I am over the moon.

    But that is my opinion for what it is worth.
 
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