The tone of the announcement has changed for the worse compared to previous, no amount of spinning can change that. I would argue at this point undoubtedly most holders already have a bitter taste in their mouths (rightly) about this investment regardless of the outcome. I would also argue a lot of holders will want out as soon as possible (if and when given a chance) regardless of a positive outcome. I would also think NF and bod share SHs bitterness regarding the project given the amount of grief and headaches they've been and will still need to go through. I would argue NF must have already lost interest (at least partially) in the project (rightly so). I can't imagine how he would still be excited in dealing with such a country for the next 10/20 years, unimaginable to me. I think it's foolish to assume NF still wants to mine this. So far, and I admit this is based solely on scarce info online, the worst case scenario being discussed/hypothesised for AVZ would be to lose the 15% disputed to either Zijin or back to Comminiere. In which case AVZ would need to work a JV with CATH for 9%, not 24%. Given the above it's not far fetched to think most SHs would be more than happy with a TO. That would obviously not happen until ML. Safe to assume most SHs would be beyond happy with a TO whether based on 75% or 60% ownership. Obviously this is an opinion only based on an assumption that the issue is only related to the 15% disputed. At this point this is not even the only concern. Unfortunately the issue may in fact be more complex as SHs are in the dark big time. BOD in my opinion will not pursue with mining this for the (known) reasons above and maybe other (unknown/undisclosed) reasons. A TO must be the ultimate goal at this point which makes concessions through negotiations with DRC an imperative. BOD must swallow whatever pride is left and play ball while game is still on, time is not on our side.
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
