Great day for AVZ and holders. Out of halt and peaking 28% above the previous close.
In the spotlight currently. About $5m changed hands on ASX today.
Broke 10c which months ago seemed a long way off.
In the short term we are in 9-10c range. Traders paradise territory as the whiff of .5 cent increments above the 10c hurdle are enticing in short term. IMO a succession of positive news(which is expected) will help hold and break above 10 cents. 28 Feb $14m cornerstone placement due. DFS almost 100% done. Then Offtake, FID, funding. This is where AVZ can show it can walk the talk, and take this project to the next level.
For the fundamental investor, this announcement looks a turning point. Special concessions including tax will be a sweetener to project economics and assistive to partner funding arrangements who we know are in discussions. Creating jobs and improving regional economy are great social benefits.
This announcement is like an inflection point. AVZ look more and more like leaving behind the Exploration tag and morphing into Developer/Producer. Commercialising the project and reaching full potential. $1b market cap is not out of the question in this scenario.
Moving to production status commands a higher sector/peer valuation and opens the door to wider institutional investment.
I recall LIT ETF would only buy Lithium producers years back. Buying 40m+ AVZ shares in recent times shows their foresight and confidence where AVZ is heading, (Developer Producer status).
We are trending up in 2020, and reminds me of the early run of 2017 which had no problem clearing 10cents (+1,400% for the year) Back then there was a huge buzz/optimism about the project. But whereas the 2017 rise was on mere potential and part hype. This rise of 2020 looks to be building on more substance, concrete foundations. Much project resource mets groundwork etc established. AVZ heading towards production.
‘Significant’ production status too, 5-10MTPA Spodumene, plus Hydroxide potential down the track. 400Million tonne resource(World’s biggest) resource upside +300% to 1.5billion tonnes(total project resource estimate). Multi-generational resources that could produce for decades, significantly help fuel the next generation EV boom and bring prosperity to the region.
Been a long 2 years. Well done holders new and old. Patience rewarded.
AVZs comeback, encore in play. Enjoy. Just the beginning…
