Ann: Quarterly Activities and Cashflow Report, page-113

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20/04/19

20:13

Post #: 38218120
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Originally posted by setfire2thehive: ↑

Can we cite any articles which genuinely relate Saudi to DRC more specifically AVZ.

At this stage, in terms of likelihood of investment I've got odds of 80% Chinese 15% US and 5% Aus.
I'm still surprised that there hasn't been more discussion or focus from the already producing lithium co's based in Aus.

Surely it's strategic to take a position even if to have a hand in it's control if it's developed long-term.
Moreover the extreme high grade and low impurity of AVZ materially could allow blending to occur to the end user's in china. It's the single biggest risk I see for the Oz producers.

I see AVZ as the Vale of iron ore. PLS, KDR, and GXY being the FMG, RIO, BHP. GXY have a large sum of cash at their expense. They've already got international exposure and experience. They're current hard-rock exposure is slim to nil. KDR has no debt. PLS has probably committed itself to it's direction. But I still very surprised that collectively no one seems to be discussing Aus JV's.

Without getting too political it's a shame we Oz farm out so much of their opportunity. I'd love to see the success of any ASX listed lithium company by joining forces with AVZ. They've already been bent over by them with pricing arrangements, why not pull the pistol out first and take arguably 50% of known hard-rock lith away from their control. Then use it to their advantage to leverage pricing back in their favour.

IMO, AVZ at full song with a hydroxide plant or 2 in full operation with full infrastructure upgrades (2025-2030) will flood the market and put the rest out of business, or at the very least on extremely marginal profits. Worst case scenario is they take a 20-30M stake and let the chinese do the heavy lifting until eventual development. Sell it back to them 5Y down the track for a uge profit. If it turns to complete sheeeet and never ever gets developed then 20-30M is a small price to pay to protect your multi billion company.

Right now, AVZ is worth the risk. We had a few US co's throw 25M at the highs, for a piddly stake might have been 4% - 25M buys you 25% right now. There's still a risk that this goes no where. But I also get the feeling it's a little Mexican stand-off in the sense no one else wants to pull the trigger because no one else has. As soon as there's a sniff or corporate level investment IMO this turns into a feeding frenzy.

SF2TH

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may be it will happen

disallowed/national/anti-adani-convoy-heads-north-from-sydney-20190420-p51fvc.html

AVZ Price at posting: 4.1¢ Sentiment: Hold Disclosure: Held
3 Upvote

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