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78.0¢ avz minerals limited

Thanks @grassseeds . Great questions and very positive answers....

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qball

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29/11/19

22:09

Post #: 41720965
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Originally posted by grassseeds ↑

I also went to the meeting and like 1958 Bulldozer i came away with renewed confidence. Collectively the presentation and questions occurred over about1 hour. After the meeting, i had about 15 minutes with Leon Math and Graham Johnston as i had prepared 5 detailed questions. I will not try and cover previous comments but add the results of my discussions.
1. Control of license. the license has about 2+ years to run and the changes requested by Yibin are already in progress and not an issue.
2. Yibin's funds due late January and they want as much output as they can get. AVZ delaying commitment until DFS completed as they believe they will be in a better position to talk quality and price. AVZ would like to restrict Yibin to about 25% of output.
3. Cominiere have been instructed to drop their shareholding to 10%. AVZ endeavouring to lift their holding as high as possible and 70% appears to be the minimum they will eventually achieve. They hope to get extra shareholding along the same lines as they did with Dathomir.
4. Huayou have a dilemma. Yes, they tried to cripple AVZ and forced AVZ into the disastrous Capital Raise via Patersons. However, now their shareholding will be below 10% which means they will probably lose their board seat. Relations with Huayou are now better than what they were previously. Huayou now has to decide what they wish to do with their shareholding.
5. AVZ relations with all levels of Government very good and AVZ pushing for the area to be designated as a [BCOLOR=rgba(246, 213, 217, 1)]Special[/BCOLOR] Economic Zone. AVZ appeared confident that they may get this approved as there are already 4 others in DNC and the area where Manona is located needs development. If achieved tax's and other benefits will benefit the project.
6. The major problem is still sorting out the transport route.
7. AVZ are getting more comfortable with potential financing options. More groups are now contacting AVZ including large European banking groups. AVZ expect that a 50/50 debt/capital finance arrangement will not be a problem. Once the DFS is completed they expect that external interest will accelerate.
8. NF produced a graph showing how AVZ's share price drop is similar to other groups and follows the fall in the lithium price. AVZ expect that the lithium price will increase and their product will be priced at a higher level than the basic price.
9. No major drilling expected in the next 6 months but they may drill a couple of holes in the Carriere De L'Este deposit.
10. I raised the issue of perhaps a future dual stock exchange listing but this is obviously not a current objective due to the high registration cost.

I expect that after the DFS is completed the share price will start to increase providing we don't have any major market corrections.

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Thanks @grassseeds . Great questions and very positive answers. Again, really appreciate the time and effort you guys have made to go and feedback to the forum.

Sounds like Huayou are feeling a little unloved! Just desserts I say. Bring on competitive tension!

AVZ Price at posting: 4.3¢ Sentiment: Buy Disclosure: Held
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