Running discussion on SP, page-2015

Some basic back of envelope calcs and ramblings.  From the interview, I have focused on the following.

360,000 tonne/annum
Construction potentially fund-able 50/50 equity/debt
$40 to $50M partner investment + offtake.


360kt/ pa is a PLS stage 1 size operation so 2Mtpa.  300 - 400Mt initial JORC would be considered a starter pit operation in this scenario.

$40 to $50M investment is approximately a 10% investment in AVZ. If we consider 2 battery partners (BNBT and Tinci) funding this - that may work out as 5% each.  Huayou Cobalt to be mine builders so their slice of the pie would have to be included somewhere in that mix of investment or offtake.

50/50 equity/debt mean AVZ to raise $50M of debt at least of funding for a total raised funds of around $100M to kick off the stage 1 development.  AVZ may be able to finance that from one of the offtake partners.

So we are looking more of a PLS/AJM funding/financing arrangement rather than a KDR funding path.

The above is only some random thoughts.  Would like to open up and hear other thoughts on possible development paths with the info we currently have at hand.

Haplo