AVZ 0.00% 78.0¢ avz minerals limited

Running discussion on SP, page-38949

  1. 447 Posts.
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    Purely speculating here on AVZ's SP potential if offtakes/financing/production is achieved...

    Lithium supply squeeze forecasted for around 2024 and most likely around that time lithium hype will be significantly greater than it is now despite already being on the up. There was an interview with Simon Moores earlier in 2020 where he said around 2023/2024 is when this change in battery markets/EVs will really start to be felt. Given this it's probably safe to assume that producers like MIN and PLS will be valued much higher than their current value by that time.
    PLS was 25c in June 2020 and now around $1+ range, and MIN has doubled in value in the last year. MIN at current MC of around 7Billion (over last month - ignoring drop off of yesterday and today) and PLS around 3.3Bill, and 2021 shaping up to be a big year for battery resources stocks in general. Given sentiment/demand for Lithium to increase it's perhaps a fair estimate that by 2024 these companies could be worth 2-3 (or more) times current value with the way lithium market is shaping up.

    So if AVZ is to achieve offtakes and project financing and become producer around late 2022 or in '23, it could be fair to say given the scale of AVZ's project that they will be playing catch up and reaching comparable MC's to PLS and MIN at some point down the line. AVZ's SP at an MC of MIN right now of around 7Bil would equate to SP of around a $2.20. What is the ceiling for lithium stocks like these with demand to continuously increase over the decade?

    Albemarle SP in June was around $70 and now around $170 which MC of US$17.71B. So MC was around $7-8B USD in June. What will Albermarle be worth in 2024?

    GLTAH for the coming weeks/months
 
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