Australia's largest stock trading and investment forum Australia's #1 stock forum

AVZ

Click for more information

0.00%

78.0¢ avz minerals limited

Rewind all those calculations.Worst case is 51% after a 250m usd...

First 135 Last

Share
Profile

Follow
KMoney

173 Posts.

35

10/05/22

06:33

Post #: 61302250
Share

Originally posted by Bullseye80: ↑

Alright so im not sure what the result will be here, dont really understand it to tell the truth, but to put things in perspective. If worst case and AVZ ownership is at 36%, what does that mean? When producing 700,000 tonnes at a cost of US$460 a tonne and Aus dollar is .71, which it looks like going down. Lithium SC6 pot prices reported anywhere from US$3300 to US$6,300. So lets use $3000 a tonne to allow for extra costs and safety margin.
Say the market still has terrible sentiment when we hit production in a year or so and the company trades at a PE of 4. That would give us a share price of $1.26 on the 36% ownership. So at the moment we are selling a probable $1.26 for 78 cents on the fear that its not $1.78.
Ive played with some different inputs and got a pretty wide range of SP valuation from 20 cent to $12. Obviously we don't want to be losing 15% of the project but the real impact on SP ultimately coming from getting into production and the lithium price over the next few years.

Expand

Rewind all those calculations.

Worst case is 51% after a 250m usd sale to CATL

AVZ Price at posting: 78.0¢ Sentiment: Hold Disclosure: Held
12 Upvote

0 Great analysis

Reply

Top Stories

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

PXX

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

PGD

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

IBG

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

There are more pages in this discussion • 38 more messages in this thread...

First 135 Last

Add AVZ (ASX) to my watchlist