People seem to be far too short sighted on AVZ and fail to see the big picture of where this company is headed and can get too. Albeit most of these individuals are trolls but it is still good to sit back and look at the big picture when it comes to AVZ.
We are really sitting on a deposit that could change the lithium landscape as it comes online and into the next 3 -10 years. We have the size and grade between RD and CDL to support two seperate world class mines, which can both operate for 30years +. Profit margins will be mind boggling in years to come.
A lot of comments pop up "stranded asset" etc etc. What people will soon start to see(already can be seen by some) is big corporations investing in Africa, not only for mines but for actual Battery manufacturing facilities and more. It makes complete sense to place these factories in a location where all of the necessary minerals are nearby and easily accessible. Convert your materials in country and ship out batteries where the cost of shipping per battery will be a lot less. Connect these batteries into a vehicle made in Germany(for example) and you are good to go.
In addition, and going back to peoples point on transport. There is absolutely nothing stopping a transport company in the DRC connecting a rail network to Manono directly. The volumes of lithium exported can more than sustain such an investment. Down the line these rail lines can then be linked straight into these facilities. There are a lot of articles popping up at the moment about rail in Africa and specifically how they need to connect all countries to encourage trade of resources around the area. Transport to me is not a concern, yes it would be if we were talking a mine the size of PLS, but with the size of AVZ the CAPEX to sort transport solutions is actually a rather small %.
Above i haven't even touched on what the DRC are trying to create with Special Economic Zones and how they incentivise both of what i just discussed. These zones will allow the construction of infrastructure such as roads and rail by increasing the economic benefits significantly. In addition and depending on how these are set up, there will also be the capability to leverage these zones for battery facilities and more.
There is a reason that the Govt are taking their time on AVZ, and i dont think it is 100% AVZ related at all. The DRC have big plans and they want to ensure that SEZs, PPP and HEPP to name a few, are all structured in ways that can be repeated and are win win for the DRC, Shareholders and Companies outside the DRC wanting to invest in. In addition they need to role out internal operations to ensure all these contracts and deals are being fulfilled(see below article). AVZ for me is triggering all this change in the DRC and why they conducted a visit with DRC officials to the Dube SEZ in South Africa.
https://www.7sur7.cd/2021/08/28/rdc-le-gouvernement-adopte-le-projet-de-decret-portant-creation-de-lunite-deAVZ is at its most challenging point currently for me, once all of these deals are finalised and we are off to construction/production then nothing should really hold back AVZ from becoming one of the worlds largest lithium producers. Diversification away from Lithium will be pursued by the Board and we can look to start up other mines around Manono and expand as a company.
It really is just the beginning, and an exciting stage for AVZ. Those who cannot see AVZ has the potential to be a multi billion dollar company are naive and blind to the transformation happening globally. If PLS can reach a $6bn market cap with its deposit(not bagging just comparing), AVZ has a very bright future ahead.
All IMO DYOR.
