Great stuff @Freehold. Look forward to long term holders being...

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qball

5,054 Posts.

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02/05/19

11:24

Post #: 38371621
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Originally posted by Freehold ↑

Don't bother wasting my time reading the daily "garbage" pumped out by superficial thinking novice spec bear traders on the AVZ threads as frankly have better things to do with my time. Ive been investing for 30+ years now... Don't want to have a mind numbing group think debate with these types as Ive done all the research I need.

So In a nut shell, AVZ is the largest Hard rock resource (still un-contracted) on the planet that we know of and I doubt they have defined 30% of it size as yet. It has the 2nd highest grade of any known hard rock resource (bar Greenbushes). It has very low impurities, is at a surface and homogeneous over a wide swaths of the deposit so very low strip and process costs. There are tin credits to be had. Metallurgicals seem to be very robust. There is a large town right next door so large amounts of cheap labour limited need for FIFO staff...like WA mines like PLS... it has water on site. Sealed road being built to it. There are many mines in the region shipping to various ports profitably right now and have been for a long time. It has the support of DRC Govt (They own a large % of co), We have Chinese already involved albeit passively at this time.

A few key things need to be determined before market wakes up.
1. confirmed transport route (as there are many options to choose from)- A multi-generational resource of this size and grade will get developed IMHO. Based on others transport costs in region it appears to be very feasible. But lets see the numbers.
2. DFS confirming projects other fundamentals
3. Forecast Lithium price level make project economic. You would have to assume at this point that the demand for Lithium will sky rocket in the years ahead... as evidenced I think by the WES takeover of KDR today amongst others recently. WES is betting on massive demand for Lithium. Good move by them dumped their coal Assets and moved to Lithium and RE.

I have no doubt that the resource is big enough (multi generational 100yrs+ ) and high grade enough that it will demand its own rail link over the next 10 years but initially a truck to rail for 6%+ Spod route to be confirmed in short term logically to Dar Es Salam. A Hydroxide plant on site would be the ultimate to massively reduce transport costs however not in the near term as the amount of infrastructure/chemicals etc (That is unless the Chinese step in, of course) etc required would be cost prohibitive that is until the lithium demand Tsunami hits in a few years at which time It may make more economic sense.

So I'm comfortable with my investment I don't need the reassurance of the masses nor do I feel the need to reassure the masses of its merits it is what it is ... If they invest fine if they don't fine... Each to their own.

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Great stuff @Freehold. Look forward to long term holders being justly rewarded.

AVZ Price at posting: 4.2¢ Sentiment: Buy Disclosure: Held
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