Biggest Li deposit in the world, this surely will happen, though great projects/companies can always be overvalued, but saw this just now on Stock Specialist: -
"The weakness in the AVZ share price is likely to do with ownership claims on the project joint venture. Under the terms, La Congolaise D’Exploitation Miniere SA (Cominiere), which owns the other 25% of the Dathcom business, will let go of 10% of its interest to the DRC Government. AVZ now wants to acquire the remaining 15% of the interest in Dathcom, which it believes it has the rights to. However, Cominiere has decided to transfer this interest to Jin Cheng Mining Company out of the blue."
Does anybody really think this legal issue arose on the day they announced the issue of the mining licence or did management know this long ago and not tell the market? ASX rules clearly say this should have been released when they were first aware of it. What are the implications for the management team/board if they knew this weeks/months/years ago? What else are they not telling?
AVZ Price at posting:
80.0¢ Sentiment: None Disclosure: Not Held