Had a good read of the SS myself (as you should all do if you...

Had a good read of the SS myself (as you should all do if you hold AVZ). I'm comfortable that fugures used were conservative in nature (ie US$ 0.09/t/km AVZ vs US$ 0.07/t/km Ivanhoe, no tin revenue factored in, etc), however the sale price seems a little outdated. There is a section on pg 21 that attempts to justify this through historical pricing achieved by peers. Recent spot price and recontracted sales have dipped from recent highs. I see this as a reaction to the supply / demand balancing as new producers come on line.

https://www.fastmarkets.com/article/3836121/pilbara-minerals-makes-first-shipment-four-years-after-drilling-first-hole

The report justifies a higher price due to the lower impurities, which is a valid point. There is also a sensitivity analysis showing the effect of a change in litium price. In all, the potential downside here does not appear close to being a deal breaker.

Factor in the upside included in increased reserves, tin, higher throughput and increased demand over the long term, the claimed value seems to be there.