Despite all this market manipulation with a totally skewed sell side with 12 million shares(63%) of the 19 million sell side in an unrealistic position designed to hit stop losses so the big boys can accumulate your shares:
AVZ had a Fantastic result-Mining Licence over the line: Onwards and upwards!
Then-
proactive statement by the company at the bottom of the announcement officially saying
that all that BS put out on twitter was BS and as conveyed to me by the MD is
utter rubbish!
The mining licence-a major rerating catalyst that will trigger many others.
Short Term Strong Re-rating Catalysts:
-with the mining licence now ticked off it will trigger other catalysts including further funding where instos will pull the trigger on the awarding of the ML and other catalysts could now fall in quick succession.
-Funds released from CATH(CATL)
-Collaboration agreement between the DRC government and AVZ
-HEPP(Hydro Electric Power Plant agreement)
-BFS- which should be stellar with massive increases in lithium and tin prices, increased resource size(wedge drilling), decreased payback period and a massive increase in NPV/IRR with plans for a 10 Mtpa plant( 2 times greater than PLS's two plants combined
-AVZ MC=3.5 Bn; PLS MC=7.9 Bn, and roughly the same shares on issue, so AVZ is greatly undervalued especially when you look at the size of our resource(the largest) and capacity to expand.(1.5 Bn tonne exploration target which the MD has said can be achieved easily-planning 10 Mtpaand have enough easily extractable lithium for 40 Mtpa) Value added with primary lithium sulphate(less transport cost) and plans for lithium hydroxide and a battery plant making transport costs redundant in the future!
Amazing fact:AVZ has established the world's largest high grade lithium resource with only10% of pegmatites drilled!For instance there are a number of pegmatites untested and Carriere de l'Est that we have just explored briefly is thought to be bigger than Roche Dure pegmatite!
Roche Dure Pegmatite:
AVZ- a geological freak!High-level independent metallurgical test verification of Manono's lower iron, fluorine and phosphorous levels - and projected significantly lower open pit stripping rates - underline the incredible latent value in the DRC project.
"We think this project is completely different to every other project out there because it is so large - we're not talking about 10m-wide zones, it's 200m,"says Ferguson.
"But it's not just about being the biggest in the pack, it's very much about that scale translating into value, which comes back to quality.
"It's the nature of the beast at Manono, with such a big, wide [pegmatite] body; it's cooled slowly, so we've got large crystals and a cleaner pegmatite.We've literally got, one side to the other, a single zone, and the wall rocks are black,
and the pegmatite is white … so we can just strip it down either side and not worry too much about dilution. It's pretty much 1.65% all the way through!
"SCT, which has designed about 85% of all the hydroxide plants in the world, have said they've never seen such a clean product- just really high grade and no detrimentals of any issue whatsoever. We have low fluorine, very low phosphorous, the iron is down to 0.4% in the product … and we'll probably get that down further with more tweaking. There is 2-4% mica in the body itself, but once it's processed it's down to … less than 1.5% mica, and we'll get that down further too."
-MSEZ-Manono Special Economic Zone Agreement giving tax, duty and royalty benefits, including a tax holiday greatly increasing the economic bottom line in the BFS
-Lithium hydroxide feasibility study-JV?
-other partnerships? e.g. Bosch and Saudis are both together with AVZ on the DRC battery council...also interesting that Tesla and CATL representatives recently present at battery industry meeting in the DRC. And who else with the desperate need to secure lithium supply with spiralling demand because of supply chain disruption, lack of investment in lithium mining and development when lithium prices were down, and the need to fill massive lithium contracts for auto makers(re-tooled to electric)and gigafactories pressured by mandates to phase out internal combustion engines and mandated emission targets. We are in a commodities boom and green metals as in lithium are a hedge against market volatility and inflation!
-further funding e.g.
BTW AVZ just received 545 million from the African Development Fund-PRESS HERE, and AVZ was the only aspiring miner chosen to take part in the DRC’s newly formed Battery Council-PRESS HERE-what a great endorsement for the project.Also the DRC has just joined the EAC(East African Community). This will open the corridor from the Indian Ocean to the Atlantic Ocean as well as north and south expanding the economic potential of the region to expand markets for goods, services and infrastructure including upgrading transport corridors.
-further offtakes
-FID
AVZ with the largest lithium deposit globally well placed to meet global future demand!
Exciting times for AVZ holders!
AIMO
