Does valuation not become a product of infrastructure also? For it to be relevant as the biggest resource on the planet, it must also become the biggest producing mine, i.e. 15 mt plus. How do the roads handle this, what about power and other infrastructure requirements? If a mine can be build in record time by the Chinese, what about the infrastructure that the Government mainly controls? All this will determine a TO price IMO. What OPEX does a long trip to port add? If a refinery is build at the mine site, what additional cost and infrastructure does this add? All these unknowns create risk and will keep a TO price depressed. I also believe the $600m is a high price for where it is at. The size of resource is most likely the largest in the world, but is really immaterial if you don't get it in the largest volumes to market. I believe the posters don't discuss this as much as they should.
AVZ Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held