Ann: AVZ Appoints GR Engineering as DFS Engineer, page-76

First 76 Last

Share
Profile

Follow
8horse

34,336 Posts.

9076

13/07/19

03:36

Post #: 39503683
Share

Originally posted by Scarpa ↑

My theory is simple - the DFS will drive the IRR and the decision to invest in the project (and also drive decisions by Offtake partners to get equity for Offtake Agreements and finance agreements in general).

Why GR Engineering, say for example you don't have trust say in Hauyou - just a guess - then you don't want that partner doing the DFS so I suspect they are looking at someone independent to do the inputs to the DFS (and presumably the IRR calculation that goes with it).

Or alternatively, and more likely theory, is your lenders/Offtake potential partners want an independent valuation/feasibility study rather than one done by one of the substantial holders doing that evaluation itself - just a guess.

GR Engineering is actually a reputable company, well known in WA. Here is a list of some of the engineering projects they have actually done/constructed:
https://www.gres.com.au/projects/default.aspx

And this is what you might see in their approach to feasibility studies:
https://www.gres.com.au/services/feasibility-studies.aspx

Based on this link below, there is a reference to this company completing 160 feasibility studies in the past, albeit the complexity and areas of expertise are not documented:
do not advertise external links.au/companies/news/209334/fyi-resources-welcomes-start-to-gr-engineering-led-dfs-due-mid-2019-209334.html

All IMO

Expand

As AVZ is open to non-Chinese enterprises, It's a good choice to select a non-Chinese engineering company to do the DFS, that is more independent.
Japan and Korea are the two largest battery producing countries, also, emerging battery factories from Europe and US, may have an eye on the Manono.

All imo.

AVZ Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
22 Upvote

1 Great analysis

Reply

Top Stories

ASX Market Open: ASX tipped for flat Tuesday as steam escapes | 16 July 2024

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

Shekel Brainweigh and Calmer Co lead innovations in the retail space

ENR

Encounter sniffs 4% niobium across 1.6km of strike in WA

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”