“China would love to drive down lithium price as they currently have already reached 85% import dependence for Lithium.”
It’s possible while almost everyone goes nuts about the shareprice swing, nothing has changed except HuaYou (major shareholder btw) affirming loudly its intention to workwith AVZ on bringing to market a PREMIUM product.
Important because, as my Hong Kong taxi driver tells me, Huayou appear to have had money/credit problems. Why sell NZC to Chengtun? Note cobalt price slump, internally artificially hording supply by market makers led to a “who dares” and consequent dumping
It’s also been said that HuaYou long ago (2017), wanted to start scooping out Manono’s spodumene ice cream, and feed it into a DMS plant. You know “make a money”. But as we all know management wanted value adding...and still do (minus Klaus taking note of sector wide trend and Ferraris)
So while punters here lurch for clarity on why SP drops and why HuaYou engagement, it really is a positive announcement because it makes clear there is COOPERATION and with an experienced industry participant based in Katanga mining hub. Huayou have an investment and if they can improve the share price and add value along the way, then that’s great in my view. Of course we would like someone else but facts are they are a major shareholder and you wouldn’t want to upset them unnecessarily. My Hong Kong taxi driver says it’s strange Chairman Chen is engaging and speaking with AVZ management. If they see AVZ as a puppy to snatch, why would they form a strategic relationship?
What has changed? I know many like facts and can’t speak for future but what has changed to move HuaYou?
They obviously want to be seen as being in the action when it happens.
If AVZ gets a good announcement out on taking this to mine with funding etcetera perhaps as early as this month, then it will become clear why a Strategic Relationship is announced now, and not later. HuaYou, my Hong Kong Taxi driver tells me, is keeping face, and being proactive with their announcement as they must know what’s brewing below the surface including with their friends at Dathomir and likely Cominiere as well.
And that’s the other part many here seem to overlook in their comments: AVZ is part of a joint venture already, it relies on cooperation and hence Nigel acting can rely on other parties to theventure as well.
If financing in a way advances and emerges in a way the market can’t tolerate then yes, the avenue of take over could be indicated and taken once and for all.
But right now, who is traumatising retail with downward market making games?
Likely to continue until what prompted AVZ and HuaYou to reaffirm the board role now becomes public.
I ask myself why now? Why not at time of CR when they reinvested? Or when they bought on market (via CommSec ref:8horse)?
Why now? does anyone really think HuaYou Chairman Chen would cooperate on a SP ramping exercise? Is it really fluff? Or is it just an unexpected turn of events?
All will become clear soon enough based on the timing of this announcement, in my view.
GLTAH
