Time frames in an establishment phase of any project are rubbery when you are developing the requirements and establishing resources, ordering equipment etc. There are so many parts to a project like this. Yes some inferred timeframes have been missed, that happens in projects, show me ONE that hasn't - there are none!
My timeline (since 2017), and which I have stated many times here, has always been 2021-2023 regardless what the inferred component deliveries are. Within this window if AVL don't have construction well underway, if not completed by then I'll be disappointed. If they are well under way but not complete I'll ride the wave as long as my faith in this team remains solid.
I don't give a damn about TMT cap raisings - best of luck to them whatever they do. AVL got theirs done quickly and achieved the goal needed. No I wasn't happy I didn't get an opportunity in that process but I'm not going to crucify them for that process. Yes I would love it if AVL didn't need to undertake any CR and related share dilution. But it's what had to happen prior to mining revenue being available. Many small caps have to go to the bank as they don't have adequate support from retail or sophisticated investors. That's a far worse positon to be in.
Yes there will be two plants built, three actually. One processing plant at Kwinana for the V2O5 by 2023 sometime, and the two strategically well placed factories for mine and refinement plants. V2O5 will be sold to the US Vanadium and locally for VRFBs and VSun battery production and local sales which is on track. Great strategic position to have and will provide diverse revenue stream, unique to this company. As we all know, sales otherwise of Vanadium have many avenues/applications such as, aerospace, Defence, steel, motor industry, other battery innovation... and AVL has some MOUs in place already, more will come and binding agreements will be struck.
"Selling part of the company to random investors " ... oh well YOU and ME are random investors to ... they sold them to us in other processes!?... and 40% off WHAT? Where did you get 40% from? Market price at this early end of the game is volatile to begin with. Price is set at a time the documents are drawn up and price incentives to attract the money. That's business! Again no bank loan that would look less attractive to financiers once BFS hits the table. Yes a better place to be than having to pay a 3% interest (your quote) on a multi million $ debt at this point and when asking for further finance.
The government grants, the innovation alliances, state and federal govenment project recognition, VRFB market development, local community support and sponsorship, green energy production integration, it goes on and I'm sure there's more but all done while getting the complex foundations laid for this project which includes off site, in fact out of country, assay analysis, production process pilot assessments and innovation enhancements.
I look for positives and attributes that make me confident of the project and the management team driving it. I will continually watch and read and assess these elements. If that shows signs of failing, I'll get out. I won't scream and yell from the soap box because the project isn't meeting my investment timeframes or instant returns expectation. Small cap investment is high risk and volatile and getting to mine is a difficult process. The upside can be very good when you are in at the ground floor but that comes with a lot of patience also as an investor.
Trying to find a scape goat to justify your disappointment by bagging out the management team and the project achieves nothing. Making up figures, generalisations and inferring errors are baseless comments. The project team here have all the pressures of bringing this complex project to production among a global pandemic now with out needing the pressure of the rubbish rhetoric on HotCopper!
Good luck to all investors of this excellent project. Be patient, it will come to play.
All my opinion, make yours based on your own research.
AVL Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
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