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Hello elpha, again a nailed on the head great post! As it is so...

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Beobachterund

1,227 Posts.

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02/04/20

07:13

Post #: 43831152
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Originally posted by elphamale: ↑

'So if FIRB delay the process again - does that mean Yibin will give us another $1Mill?'

Just a hunch but my spidey senses tell me that IF 'Plan A' is further delayed by FIRB /J.Frydenberg then 'Plan B' (mentioned in post 43767088) may come into play as a safeguard / stop gap measure. This would also explain the 2-day TH IMO. The last time I spoke with our MD I got the distinct impression that there was no shortage of strategic investment interest in AVZ. Enabling 'Plan B' would be a wise move IMO (assuming a fair price for any additonal equity was paid) & would also allow the company to proceed with planned works like hydrogeological testwork, infill drilling etc. subject to any restrictions due to Covid-19.

Otherwise IMO the $1m top up already received is enough to complete the DFS, pay wages & keep the lights on until 'Plan A' is approved, but not much else. Also, we shouldn't forget that 'Plan C - expiry of May 2020 options' is largely dependent on Plan A and/or B IMO, and would provide an additional $6m should the 3c options expire in the money. Thus AVZ could potentially have >$20m in cash by the end of May, and that doesn't factor in any upfront moneys received due to an OT agreement or two being finalised with Yibin and / or anyone else.

Also, I have a sneaking suspicion that the DFS won't be ready this week. Not sure whether people realise or not but typically a DFS is hundreds of pages of information (in some cases more than 1000) that then gets condensed into a smaller (summary) document that can then be presented to and digested by the market. Thus IF the DFS is still a couple of weeks away, then IMO it will be more to do with a) the no. of eyes that are required to crosscheck each section, and b) coordinating this in an online (personal exchange free) manner. As others have noted, the SEZ meeting has been delayed due to Covid-19 restrictions but my understanding is that the DFS can still be released, albeit with tax, royalty rates and public/private partnership details etc. to be added at a later date.

Guess we'll know more re: some or all of the above tomorrow.

View attachment 2080969

GLTA and stay well,

Cheers
Elpha

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Hello elpha,
again a nailed on the head great post!
As it is so quite now and we need some more patience, what du you (or others view appreciated) will be the part of huayou in this ongoing game here?
Its so long so quite about them and maybe someone who met the management had time to have a few words with management about huayou?!
The investment from huayou was more or minimum equal to the deal with Yibin. So I'm more and more sure that they are looking for an offtake as well.

Best
Best wishes and most importantly, stay healthy all and take care!!

BEO

AVZ Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
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