AVZ avz minerals limited

Ann: Manono Project Mineral Resource increases 47% to 842Mt, page-92

  1. 319 Posts.
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    We all agree Cominiere & Zijin are A grade criminals with a cherry on top & deserve nothing. The reason I'm still confident we'll be OK is because the resource is massive & Manono can accomodate more than one player. We could well still get shafted by losing the northern section (hope not) but I'm still of the view we'll get a mining licence as will Zijin (sadly). We'll also know soon enough if the DRC Govt respects decisions of international courts. It would reflect poorly on them if they don't considering they're signatories but hey, it is the DRC Govt & they operate in a bizarro world. Assuming we get the ML, as I'm expecting, the question Nigel & the mgt team will need to consider is whether they bother building the mine or simply look to sell the project. One thing I don't want is a Simandou outcome - RIO has been trying develop this iron ore project in Guinea since 2008 with nothing to show for it to date. I'm sure Nigel & the mgt team are exploring all options. From a shareholder perspective, it really doesn't matter which road they take because there will be a payout either way. We relist on the ASX & resume trading - shareholders can choose to stay the course of exit. Alternatively, the project is sold & AVZ winds up & distributes the proceeds from the sale of the project to shareholders. I don't have a figure on what I believe a fair sale price should be but I'm not as hopeful as some on this forum. Figures of $2, $3 or higher per share would value AVZ at at least 10% of DRC's GDP not forgetting BHP's market capitalisation is only around 6-7% of Australia's GDP & they are diversified, generate massive cash flows & pay dividends.
 
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