Running discussion on SP, page-5519

AVZ Valuation
Since AVZ has not created any feasibility study yet, it is difficult to come up with any intrinsic value estimates. One way to look at AVZ's valuation can be through peer comparison with already established lithium players. Coming from the most recent intrinsic value estimates of Galaxy Resources (OTCPK:GALXF) and Pilbara Minerals (OTCPKILBF), I guess that AVZ's fair value with 1714M shares outstanding could be anywhere between A$1.33 and A$13.4 per share. However, please note that this is merely a rough estimate.
Source: AVZ Minerals Market Presentation
Considerable geopolitical risks
Even though the mining law in the Democratic Republic of Congo was developed with the support of the World Bank and therefore provides a transparent framework for the exploration, development and mining of mineral ore resources, the country still presents considerable geopolitical risks. Due to a fragile political system, frequent demonstrations and social unrest, DRC remains one of the least developed countries in Africa. All this could potentially hamper the company's operations.
The bottom line
To sum up, AVZ is indisputably on track to become presumably the most dominant lithium mining company. With massive reserves of high-grade lithium pegmatite, AVZ clearly presents a perfect underfollowed long-term asymmetrical investment opportunity. Should the EV industry boom play out faster than it was previously expected due to recently announced petrol and diesel car bans, AVZ's shares could skyrocket. Clearly, lithium is an element of the future and AVZ is on the best way to capitalize on its demand.
Author's note: To bring similar articles to your attention, please consider subscription of my SA feed by clicking on the ''Follow'' button at the top of this page.