Understand all the points you make Scarpa but lets take a quick look at some of the other influences we know are hovering over the DRC and China.
1. The tactic by Zijin to wait until AVZ is drained of all cash is not only naive strategy but intellectually flawed. The decision of the ICC is imminent (this month) and hopefully this will be published prior to our AGM. The ICC is critically aware of the importance of this resource not only to the people of the DRC but the world in general. Once the ICC decision is announced, it will be interesting to see how the Zijin associate company and Zijin Principal respond. I expect their will be many large Chinese battery makers lining up to gain access to uptake agreements. The full wording of the ICC decision will be extremely interesting and an agreement with the DRC 's IGF findings will give the President a clear mandate to enforce the Mining code against Zijin and its subsidiaries or to cancel any Mining Licences they have in the DRC. The President is waiting for the ICC ruling before he acts. It is the only reasonable action he can take at this time while the ICC is considering its decision. Why did the President of the DRC meet with the US and he invite high profile US Govt. officials to visit the DRC. Most SHs know how this is going to play out when the ICC ruling is awarded in favour of AVZ. You only have to read into the Announcement published by Zijin that it intends to defend its rights to the 15% they illegally acquired from Cominiere to understand they are forecasting the ICC decision will be against them. We need to stay positive until the announcement is made and believe what we have been informed that our Management team are advancing the MOU in readiness for this decision. I suspect when this happens the MOU will be fast tracked and the DRC President will be making announcements of his own in the lead up to the Elections in December. The fines imposed by the ICC on both Zijin and Cominiere will be significant. How will this be paid or more importantly what arrangements will be put in place to ensure their is no further action taken to appeal the decision of the ICC so the DRC and AVZ can push ahead to go Mining. I suspect the AVZ Management team are hanging onto information about the increased value of Manono following the completion of the extended drilling program that was undertaken and the impact the Assay results will have on a revised DFS. IMO the value of our company will be closer to $10B and not $3B where it currently sits. The Chinese wouldn't be fighting this hard for a resource if it was only $3B. AVZ management team pushed ahead to complete the Administration and workers huts while we have been in suspension. This was not done for no reason but to fast track the company in readiness to commence Mining operations when the ML or MOU is issued and the fight over ownership has been clearly resolved in the eyes of the DRC Govt.
2. You have articulated the world domination that the Chinese have over the entire EV Battery Supply chain. Don't you think the US are aware of the stranglehold Chinese companies have over resources and processing facilities and the dependence this puts over the world being compelled to deal with the Chinese . Do you think the West is going to concede and allow this domination to continue? The World lithium market outside of China is in recession thanks to the Chinese controlling prices and supply and demand. Many countries around the world are starting to develop their own processing and refining facilities. China's domination is going to go into freefall and the supply of raw lithium resources to them will dry up. The West and many European countries are going to refuse to deal with them. Take a look at what is happening in the Rare Earths sector and you will start to see how the West and Europe is going to isolate China and diminish their domination. This will be high on the Agenda in the upcoming meetings between Aus PM and China and US President and China. If China wants to maintain their stranglehold on Rare Earths and Lithium processing then the West will cease to deal with them for other critical resources which has seen their economy grow and prosper over the last 20 years.
3. Having only 1.6 qtrs of funding available hasn't been uncommon to AVZ in the history since I have been involved as a shareholder. IMO the AVZ team are close to resolving our ownership entitlements. What matters is that we endorse them to lead the project as they have recommended. MMGA MUST BE DEFEATED and clearly so to show the DRC Govt. that shareholders have voted in solidarity with the current Board. The corrupt will be dealt with in good time once the new GOVT. is elected. AVZ is far off from being defeated. We have a lot worth fighting for. Only the weak will give up and allow the Chinese to run rampant over this investment. I look forward to enjoying a VB with you somewhere when all this is behind us. Cheers
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
