AVZ 0.00% 78.0¢ avz minerals limited

Ann: ICSID Arbitration Proceedings, page-176

  1. 6,436 Posts.
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    I suspect best option for DRC would be to buy back AVZ share of project for fair commercial value (say last closing price) and then sell to Chinese at full price. They will make a profit and get the outcome the brown paper bags were intended for.

    Best they do that during the arbitration process rather than have the dirty laundry aired in a public court.

    One thing for sure is that AVZ will no longer want to be working in the country. As others have said, there are many more hoops to jump to get to production. DRC will slow/block use other means to ensure AVZ pays for any loss of face in a court case. So my reasoning for a relatively quick outcome without going to trial. AVZ will just need to show all their cards in arbitration to deter DRC govt from trying to defend the case.

    Also need directors to pull their head in and get real with outcomes and value. The situation is terminal in terms of AVZ mining in the DRC now, imo. Hopefully, they are not making company strategy decisions which are designed to protect their personal wealth/liability against an inevitable class action against them which may not be covered by Directors insurance due to their clear negligence in non disclosure. A decision in AVZ's favour in this court would help clear their 'good name' but going through the full court process may not be the best outcome for shareholders compared to a pre-case settlement.
 
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