Following table provides some indication of the value of four lithium companies:
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Column 7
Column 8
Column 9
Column 10
Column 11
Column 12
Column 13
Column 14
Column 15
Column 16
Column 17
Column 18
Column 19
Column 20
Column 21
Column 22
Column 23
Column 24
Column 25
Column 26
0
Column 1
0
Stock
Market Cap(M$)
Resource Size(Mt)
Li2O(%)
Li2O(t)
Market Capper Mt LithiumPLS
1,600
156.3
1.25
1,953,750
819AJM
673
44.1
1.00
441,000
1526SYA
83
20.46
1.02
208,692
398AVZ
308
300
1.02
3,060,000
101
[/table]
First, I like to mention that I am aware that PLS and AJM are close to production and SYA finished DFS. I am also aware that production cost is not included in the analysis. However, the unit rate production cost for AVZ should be equal to or lower than the other companies as the resource size is much bigger.
Based on the table, assuming the resource size for AVZ is only 300 Mt (it is high likely well above this size), the market cap per lithium size in AVZ is very below the other lithium companies. For example, market cap per lithium size for AVZ is roughlt 25% of SYA.
Considering the above points, I think AVZ is simply half price and worth simply about 40c.
Please do not sell your share cheap while you know it worth much more. See for example in the last 2-3 days, the shorters pushed the share price down to 16c and then pushed it up to 19c and hence so many shareholders were played and simply scared and sold their shares cheap to shorters.
AVZ Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held