Hi Lfc,tbh I expect a red day yesterday as the market was surprised about the offtake from Yibin with PLS.
On the first look I must say, same like me.
BUT:
The day after and reading the complete Ann I must say, the red day was wrong if it was like I assume.
2 points.
1. Yibin use PLS only for the lithium supply for their first step. Clear picture if you see the offtake details with the amount of the material. So Yibin is able to ramp up stage 1 plant and hold them running.
Nothing more.
2. Due to several reasons like FIRB issue, the market expect Anns, and as these Anns for finalizing the investment and afterwards a large offtake from Yibin are due for the moment, the market wait to invest into AVZ.
Here it is easy to explain that at this point on time and the Rollercoaster style from DOW and other markets, we have a lot possible shareholders sitting on the sidelines before entering the party.
Normal for now!!
The most important point and therefore the third and last one could be, that some expect due to the corona stuff a delay for FIRB, delay for the offtake and last but not least a delay of the DFS. You don't need a crystal ball to see what's going on right now.
For me, i would be happy with a delay for now, because the markets are not stable enough and upcoming imminent Anns should come into stable and cleared up times to have the full power.
The upcoming Anns will be the 14m invest from Yibin.
The imminent DFS.
The huge 200k plus offtake agreement with Yibin.
Plus one or two unexpected announcement.
As you can see, or better said, not see, the contract conditions between PLS and Yibin. If they will announce them, you can play with the numbers related to AVZ numbers from DFS.
AVZ CLEARLY could produce a higher quality SC6 stuff, with a clearly lower production cost per ton.
Avz was the save harbor at the corone blood bath compared with 80% of all companies at all stock markets around the world, so one red day with 2% minus as the other stocks are heavily green which lost before 30,40 or 50%, who cares.
Late buys come in yesterday and all is good for me.
Lit etf is rising again and the Ann from PLS shows me, that the investments into the lithium markets takes only a short breath and go through.
Good and happy not more and not less.
Wait 2,3 or 4 weeks and let's discuss again, but I expect the most of you, we will not see in 2,3 or 4 weeks.
I personally wish you all the best with your investments and hope you will do fine and take care at this hard time for all of us!
Best wishes
BEO
