AVZ (ASX) Ann: Trading Halt

Originally posted by JB1975 ↑

"it’s an own goal from the Aust Govt". I notice you've used that expression own goal a couple of times at least.

I don't think there is enough information in the public domain to conclude the Australian Government or the Federal Goverment or the Treasurer or FIRB did own goal.

There are two phrases put in quotations in the 24 April 2020 announcement from AVZ

1) "contrary to the national interest" - that's a boilerplate phrase anything that wasn't "contrary to the national interest" in an application for a s43 exemption certificate would see the exemption certificated routinely granted and quite quickly if the information provided in the application was in order (which I suspect is where issues are likely to have come up. - btw the application checklist pro forma is on the FIRB website). .

2) "growing Australa's critical minerals sector" - because of the way AVZ structures its sentences in the announcement it is not clear who AVZ is quoting - they may be quoting Yibin's lawyers or they may have been shown some correspondence from FIRB shared with them voluntarily from Yibins lawyers so they could see for themselves.

I don't think its possible to conclude that the Aust Govt own goaled unless you have seen the conditions that Yibin was requesting on an exemption certificate and the information they were offering on their application in order to get it (they might not have been being forthcoming enough for the FIRB to give them an exemption certificate on the terms they wanted) - which info you could only get to see if they Yibins lawyers on behalf of Yibin okayed you seeing.

There simply isn't enough info publicly available in my opinion to say the FIRB did the wrong thing or that the Aust Govt own goaled. I think it is quite possible they did exactly the right thing.

Something that might be done by any shareholder is inquiring of LM or NF who is being quoted (the above two quotes in the announcement) and on what basis has the company's "understandings" have been based - has AVZ been show correspondence or had verbal reports from Yibins lawyers etc to form its understandings or have they perhaps had something more.

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You are right. To me it feels like an own goal but I am not familiar with the strategy. If they were going to block this funding they may have intention of providing support in some ways to these companies so they get up and running and stay in Australian hand. This to me would be a genuine goal.