Yeah, perhaps. But if your forecasts of demand keep growing, can AVL be the sole source?
My thought is that massive demand will bring a bunch of previously marginal resources into production. It would not surprise me to see Bushveld restart, and I also believe QEM & Richmond will get Qld going.
Sure, it is lower quality, but they & govt are heavily invested in developing improved processing & refining methods. Like avl, a stable & higher market price will determine the viability of a lot of those projects - as well as ‘recovery’ type projects from slag etc.
It’s what seems a bit contradictory in the avl story - are we really aiming to be just a ‘pit to battery’ producer, or are we going to be a world class pit, or both?
And of course, being a huge world class resource makes us a huge world class takeover target, especially given our current cash burn, massive soi and low market cap. I know Lewis says finance is well underway, but I have concerns.
AVL Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
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