Interesting comments on this thread about buying new cars, 25c target for today, etc.; can't help but still wonder why people anticipated a big SP move when this news has been known for weeks? Who buys on announcement day as I said in my previous post:
https://hotcopper.com.au/threads/an...drill-holes.3664851/page-138?post_id=27066987
Buy the rumour, sell the news. It's likely there might be a gradual SP appreciation after T+2 though, once shaky hands let go of their shares. But IMO it's going to be a slow accumulation, not a sharp spike most people were dreaming of.
AVZ has a monstrous resource but what's the fair price to pay is the question. The key benefit I see for AVZ over peers is whoever ends up mining this resource can ramp up production, dictate prices, control the market, etc. But that's a long way to go - and of course at what CAPEX/OPEX? At the end of the day above a particular resource size, the size doesn't matter anymore - they can't mine all the resource in 100 years. Investors would rather put their money on lithium plays that are nearing production and will soon start generating some cash flow. A mine life of 20 years is more than sufficient - by then there might even be alternatives to lithium who knows...
