Yes comparisons to PLS is a good guide to
how undervalued AVZ is!AVZ and PLS roughly same amount of shares. AVZ market cap = 2.8Bn and PLS market cap = 9.7Bn
Now look at output. AVZ is planning an output of 10 Mtpa which is 2 times greater than PLS's 2 plants combined
![eek.png](https://hotcopper.com.au/images/smilies/eek.png)
![eek.png](https://hotcopper.com.au/images/smilies/eek.png)
![eek.png](https://hotcopper.com.au/images/smilies/eek.png)
Now add to that how easy and cheap it will be for AVZ to increase its output because of
easy access to LARGE AMOUNTS of lithium because of the
nature of the deposit-at and near surface, homogenous, lowest strip ratio and
how easy and cheap it is to convert because of the consistency of high grade and having the lowest impurities of all global deposits.
Also because of the size of AVZ's deposit
(the largest) 401
[email protected]%Li20 and its exploration target of 1.5 billion tonnes that Managing Director Nigel Ferguson says
"can be achieved easily" the ramp up can be huge(economy of scale producing enormous value longer term)!So I am expecting
a big rerating spike short term with the mining licence and
the other big rerating catalysts that it will unleash such as the BFS with much higher lithium and tin prices than the DFS that was already stellar, increased resource size, increased output-10Mtpa, Special Economic zone tax, duty and royalty concessions, further offtakes and funding triggered by the mining licence, lithium hydroxide feasibility study-JV? FID etc, and longer term with increasing output the potential value is mind boggling.
![eek.png](https://hotcopper.com.au/images/smilies/eek.png)
(see below)
![https://hotcopper.com.au/data/attachments/4070/4070189-755bbb13e068ed7cb39763bb95c451e1.jpg](https://hotcopper.com.au/data/attachments/4070/4070189-755bbb13e068ed7cb39763bb95c451e1.jpg)
![https://hotcopper.com.au/data/attachments/4070/4070191-b3be6a0289a83c6eb177e8a3b96f4f43.jpg](https://hotcopper.com.au/data/attachments/4070/4070191-b3be6a0289a83c6eb177e8a3b96f4f43.jpg)
AIMO