I guess the main arguement above anything else for merger is easier funding supposedly, and no competitor next door..
But with TMT now progressing the EPA, a project that already has metrics as good as they can be (i.e. highly doubtful to be improved by combining with AVL and adding all of their additional corporate costs with it).
A big problem we have here is AVL and their crap spinning, have managed to actually sell themselves AS a competitor.
Graham continues to spruik 'the next' vanadium mine where Vince left off, keeps using phrases like 'finalizing offtake and funding options' etc... But a) Their project currently laid out in the BFS is absolutely not viable. b) They are possible 2 to 3 years behind with EPA..
But when their gigantic share register, who should actually follow the company close enough to know these facts, still thinks construction will be starting in 6 Months because 'Graham said so', then obviously they have no trouble selling this same crap to anyone who is trying to compare the two companies and can't tell the two apart,,, so why don't they just merge??
And then the curse of the government grant. Awarded as I speculated a few days ago, on projects specifics that were perfectly calculated to qualify for the grant, but actually sink a potential vanadium operation, and everyone is convinced AVL is the premier vanadium explorer come miner...
How different a story would have unfolded if these two were given their own runway for the next 12 to 18 months.
Does merging provide a higher percentage chance of getting funded? I guess so, but that just puts some assumption on potential financiers of several hundred million dollars simply preferring a more well known name and a one ore body one entity project vs the one proven with more direct, efficient, strategic management and much better project metrics that already exists now.
Does BIG money really work that way?
So maybe merging does mean better chance of funding in that case, but boy oh boy it stings losing all of our individual potential and progress just to save the asses of the clueless arrogant bunch next door who'll still claim every milestone met going forward is Grahams doing and no credit will go to what was acquired from TMT, regardless of how much of AVL's trash plan is thrown on the bin.
Here is a strategy RCF, go gung ho into TMT, back them to the hilt, and in 3 years when we have actual income and AVL are still trying to find a way of making their project viable on paper, probably with an entire revised strategy and epa permits back to the first year,,, then ust buy them out when everyone has realised their farce and it's less than half a cent per share.
What does AVL have to offer their sharholders in 6, 12, even 18 months if this deal is blocked and doesn't go ahead?
Absolutely nothing, except more spin, that their shareholders will of course eat up, but for how long?
Oh, they have an electrolyte facility that obviously does not make a cent. How do I know this? They have not released a single financial estimate for it.. Seems a bit odd no figures have been released when it'll be up and running soon.
When there is a mine, and offtake, it will be a valuable asset, but if that is all they have on the horizon without TMT,,,, what are we doing here but saving their asses?
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