DRC was already borderline for mining investment. Their...

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avagadro

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01/11/23

10:28

Post #: 70660724
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Originally posted by Scarpa: ↑

My views on the issue here around suspension remain as per these following two posts -Post #:68411836andPost #:68238020 which I posted a while ago.

I think I am just going to duplicate the first post in full again as the tactics are becoming clearer now by Zijin. At the end of the day, the tactic here is clear to me - stall and send AVZ broke. Been put in the ringer like this by the DRC Government is going to give no junior explorer any confidence to explore in the DRC, and to be frank large companies feed of the exploration efforts of smaller companies. China might need to pay some attention to this point - you can't continue to steal if the small explorer has no incentive to explore in the DRC.

I also feel part of the reason why the Chinese are doing what they are doing may be because of FIRB. It is not like they can lob a takeover bid for AVZ given what FIRB did last time round when Tianyi Yibin wanted to increase their stake in AVZ from recollection.

To those not taking interest here - China taking Manono over is going to impact other lithium companies given China then has some leeway into impacting spodumene prices (short to medium term) as per this graphic below and what it means as I posted in Post #:70540485

All IMO
From the post I first mentioned and duplicated below:

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The stalling tactic here is simple - stall or not get an outcome for another year and AVZ is delisted from the ASX and/or runs out of funds.

I personally believe that the longer this takes and new lithium deposits identified worldwide that also the less chance DRC has of achieving any goal of seeking to become a 'battery hub' or major exporter of lithium anytime soon. Also the longer it takes the greater the probability that battery resources in the DRC will only have one end customer - China. Corruption and stupidity by the DRC at its finest. And the fish rots all the way to the top as I posted the other day -Post #:68238020.

It is time AVZ management also cut their wages and non-required expenditure to preserve funds as well.

The only way this will be sorted in the next year or two is if AVZ cuts a deal and/or the DRC President grows a set and acts (which I doubt Felix will given I also feel he is also a core part of the issues the DRC faces around willingness to act and give western investors a real reason to trust him - at the moment he is all talk and no action).

All IMO

All IMO

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DRC was already borderline for mining investment. Their international reputation is pretty much trash now over this (the Manono situation is well known).

All I can say is GL to the Chinese EVER getting this crap out the ground and over the water in this neck of the woods without international backing.

It's best for all concerned to cut a deal and cut it fast.

AVZ Price at posting: 78.0¢ Sentiment: None Disclosure: Not Held
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