Ann: Olaroz Lithium Project Construction Update , page-6

re: Ann: Olaroz Lithium Project Construction ... i think this poster (below) has got a point, so I am reposting his/hers ( Agent Cooper's) thoughts on AVB here on this forum. Both ORE and AVB are heading to production in different commodities. ORE clearly is far superior because it will be one of the only new lithium producers around, whereas there are many new copper producers like AVB. But the point that is relevant is when will the market give ORE the recognition of being a producer....based on Agent Cooper's logic, it will only be when we are in production.......

Post from Agent Cooper:
Let me make it clear - I am not having a go at AVB here - I am expressing an observation on the state of the Australian market overall.

We need a full on bull market to attract back the value investors/speculators/and punters - but in the absence of such (bull market) none of these emerging plays are going to reflect any sort of true value until they are producing.

I have noticed lately (last few years) that major companies are writing off goodwill from their balance sheets (examples of late - Fairfax masthead valuations, Coco-Cola, Ascianao) because the market no longer values goodwill as an asset (rightly so). Its a parallel universe down at the speccy end where "blue sky" is no longer reflected in company share prices. Its more a case of "show me the money" before people will part with $$$s...instead...the value managers along with everyone else are waiting to see which companies actually execute on their plans. Until then - no interest, no liquidity, no share price rises - irrespective of whetehr mining permits/environmental permits/financing arrangements etc are all ticked off.

Rex Minerals was mentioned several months back as an example of the re-rating that occurs after finance is ticked off, but people would have subsequently noticed that simply wasn't true at all. FInance has made ZERO difference to the RXM share price - and this is a perfect example reflecting the state of the small cap sector.

Stocks like AVB - and indeed others I follow - are for true believers only right now. Those looking for spectacular price gains in the short term are swimming in the wrong pool. Only people with patience (such as the true believers among you here) will prosper (if AVB execute strategy) because it is no longer possible to predict when a re-rating will occur. It certainly won't be linked to any finance/mining/environmental approval, but more linked to overall market sentiment.

None of the above is good for the future of the ASX especially as I expect a consolidation of global equity markets in the decade ahead. ASX will either merge with Singapore or be swallowed up completely and then small speccies will no longer be competing for attention on a national scale but on a Regional (or even Global) scale for the attention of investor money.

From another persepctive, this isn't altogether a bad thing as it will focus investors on the longer term view and away from the "sugar hits" of quick wins on the market that so many are seeking. The mantra of "do your deep research", then place your chips then wait will pay dividends to those who pick the right company.

Coop