1/ Suspension- As many longs have said, I too am very happy with long suspension. Recent scaremongering is a blessing in disguise with us now escaping the market volatility, lithium bloodbath, etc. I don’t mind if this suspension goes on for a long long time. Many of us have held for years already.
Might note also that broader market is showing some signs of recovery over last 2 days with intra day falls across many stocks not lasting till day end. So maybe AVZ will be back online in time when broader sentiment returns.
2/ Shorters holding on- Meanwhile shorters might end up with sleepless nights till next Friday , as lithium and broader markets could recover. Lithium stocks could begin a new wave up and being 160 million shares short in a rising market could end up very costly as losses on shorting could be unlimited. Meanwhile AVZ would be accumulating all its info in coming week and could come out with a series of good announcements.
Very important that investors do their own thorough research. DYOR can't be overemphasized.
3/ Mining license- I won’t be surprised though if suspension is just for mining license - “The voluntary suspension is requested in connection with the finalisation and release of an announcement in relation to its mining and exploration rights for the Manono Lithium and Tin Project”
4/ I do hope that suspension is at least till mining license is received.- It is a major landmark and receipt of mining license would also be a sign that other documents are ideally in order. Also AVZ does not need other disturbances and scaremongering till this is sorted out.
5/ IMO, AVZ management have handled stuff pretty well recently. Issue was clearly addressed last week itself where AVZ said they have clear 75% title. Then the AVZ presentation clearly addressed the ownership with clear pie charts about our ownership. AVZ is also going ahead with normal stuff and making presentations, etc. in Cape town. And also, today’s suspension which many longs were hoping for. Lastly, I like the fact that presentation merely stated our holding and did not even bother to address other parties. AVZ is confident about its own holding.
6/ Ownership explanations on HC- As mentioned, AvZ already addressed ownership and pie chart made it clearer. Several AVZ posters have also over last week explained the ownership.
Assuming everyone has seen it but if not yet, then linking @sydneyguy explanation below which is IMO one of the best detailed explanations of holding you’ll find anywhere https://hotcopper.com.au/threads/running-discussion-on-sp.4111732/page-70754?post_id=61271347
7/ Keep in mind AVZ is clearly and officially announcing ownership via ASX announcements like presentation, etc and also making presentations explaining the same in 121 Conference in Cape Town in front of many other parties. https://www.weare121.com/121mininginvestment-cape-town/
It is hard to believe that AVZ is lying about their ownership
Meanwhile the other parties are making shady news releases, hiding it in middle of accounts, suddenly emerging from shadows and talking about something done in 2021, not making official stock exchange announcements, spreading rumours via social media etc. Ideally it seems that AVZ is the far more transparent and straightforward party
8/ Arbitration - AVZ has received request of arbitration by Jincheng and not legal action in DRC. Note that AVZ is already confident of its holdings; it is Jincheng that wants arbitration. Also at first glance it looks like Jincheng has exhausted avenues in DRC and not confident of its legal avenues in DRC anymore.
AVZ needs to look into this as to whether AVZ even needs to get into any arbitration.
9/ Many commenters have noted that AVZ has faced litigation in past too and come out successful
Cantor clearly mention - “We view the challenges to ownership interests as a distraction and expect them to be resolved in the near-term with no negative impact to AVZ. As such, we view the recent sell-off in the stock as a buying opportunity”.
There are other charts in report clearly showing breakup of holdings and AVZ’s majority stake.
Cheers. All IMHO, please DYOR
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Held
I don’t mind if this suspension goes on for a long long time.
