Hi all,
After attending the AGM yesterday, I can say I am very confident in the future of AVL. Vincent went over the presentation that he presented at the Low emissions conference the other day. He also told us that there are approximately 70 leads of which will require approximately 90 battery units, additionally before the meeting took place Vince said that a man from a mining company had just left after discussing a battery system for his company's operation, (I think remember him saying something along the lines of
it will take time because you don't spend $4 million just like that).
I have asked if the company is aware of the Kalbarri micro-grid; "Yes, we are keeping up with that project and plan to show our hand".
In regards to the lithium project; Vince will be heading over there the week after the utilities conference next week to assist in the initial sampling, the plan is to sample the tailings pile as the mine was once used for feldspar and so the spogumene, may have been simply tossed away, leaving it loose and ready to be scooped up and shipped out and I believe if I remember correctly, to set out the drill plan.
The team to doing the sampling and drilling in South Africa has been essentially hand picked by Vince; they are people that have worked for or with him in previous projects in South Africa, and he has trust in them. There was mention about doing a similar type of thing that PLS have done with their supply contract i.e. digging up the ground and sending it to the Chinese, in regards to the tailings if they are of adequate grade.
Vince expects that the lithium mine will most likely get underway much quicker than the vanadium project simply because of the regulation, or lack thereof, on Namibia. In addition to this he believes that the government over there will be very eager to help develop the mine due to the fact that there are very few operating mines in the area and the high unemployment rate.
As a side note I asked if AVL plan on hedging against the exchange rate seeing as we need to pay in USD, he said that they will be considering it.
In regards to the electrolyte plant, it will be most likely built in the Eastern States as that is where the highest demand is expected to come from purely due to population, and is expected to take roughly 3 months to build after the initial testing has been verified.
Overall, Vince said that the order of activities will be a little like this:
Battery sales
Lithium project
Electrolyte production
Vanadium project
Vince anticipates that we will be receiving a cheque from the government regarding R&D, similar to that one received last year for $410,000, but obviously couldn't say how much we would be receiving.
One last thing, the technical sales person will be starting in January.
Exciting times ahead!! Best of luck and DYOR
(20min delay)