Hi guys,
Thought I'd wait for the noise to drop down a little before posting, its a killer acquisition and the company has been turned around very smoothly since Jason Brewer came into board. Its defs been worth the wait.
Quite a few things to be mentioned so ill break it down
Technically:
I was disappointed by the open and expected it to be trading higher than it is now. In hindsight you can see all the stale supply that kept price down this morning. But the soaking by smart money was done and dusted by the afternoon and we had a great close, and now all the stale supply has been taken care of in the process so should run smooth from here. Chart reminds me of the CXO chart upon their first ann which began the massive rally and attack into 52week highs (see below)
4CE:
CXO:
Register:
The register is very similar to AVZ with the same guys from GTT Ventures that backed AVZ backing 4CE aswell.
This is now GTT's 4th lithium backing I know of in the last two years.
PLP(LPD) was the first which made bags
Then came RMX which made bags
Then came AVZ which made bags
Now comes 4CE.
AVZ vs 4CE:
AVZ currently trading at an EV of $144Million for 60% interest in their Manono project. So at 100% project value is approx $240M
4CE currently trading EV of $7.9million for 70% interest in their Manono project. At 100% project value $11.2M. This is excluding the fact management are intending to sell off their old assets to focus on the new acquisition(s). I say "acquisitions" as there was a little hint in the announcement to further licenses being acquired (See below). So $11.2M is a conservative estimate, I'd say its being valued closer to $10M right now.
Basically the acquisition is being valued 4% of AVZ pre-DD.
Some serious potential gains can be made here if market wakes up.
AVZ also has exploration permits for its tenements where as 4CE deal has exploration permits along with mining permits lasting 30years.
Regional Mineralogy:
Here are some highlights of the region and why its becoming such a prospective location for lithium investors:
Grade -
AVZ also recently drilled showing there is high grade lithium available, also there trenching shows higher grades towards the Southwest extension which is the direction in which 4CE lays.
Depth -
Probable depths of 100-150m, which was confirmed by AVZ's hit of 202m. Some of the deepest and largest rare metal pegmatites across the world.
It is described as "Dwarfing" the currently known world reserves.
Extensions -
I came across an interesting picture showing potential extensions SW through Kitotolo into 4CE region
Misc - Just thought I'd add, recently read an article regarding the building of a photo-voltaic power plant in Manono and furthermore progress of road rehabilitation program from the government (which began last year) to make roads use-able during raining season aswell.
Other than that I don't have much to add that hasn't been mentioned already here. Some great research already has been posted:
This one by
@Krayz23 was good:
https://hotcopper.com.au/threads/an...3592674/page-81?post_id=26343483#.WYhbPIR97IU
Also this image has been posted already but I thought I'd throw it again cause I like it lol
We're surrounded by Giants in the area.
Cheers
(20min delay)