General Discussion, page-66

it was announced Nov 21 and will run for 12 months from installation. It is a while away for tangible news flow but the stock market is forward looking by 6 months is the general consensus imo. I expect this value of this deal will be realised towards the end of this year. Question is how much is battery tech worth to AVL?

There a number of other deals also in play via VSUN energy along with gov grants for the battery side of this business. Just skim through the headlines and you can see there are a number of battery news events https://vsunenergy.com.au/news/

This consumables business is going to be a very profitable pipeline. They have IP in this areas, the business model will no doubt include servicing and installation and longer term I expect the client base also opens new opportunities.

AVL at 140m is bargain if you look at this from ONLY a Battery Start-up lens with funding and contracts in play.

But we also have a mining asset with a strong industry already in existence

• Pre-tax NPV₅ of A$833M and equity IRR 20.6% based on US$10.50/lb V₂O₅ price, A$604M upfront pre-production capital excluding contingency.

The market is only attributing 16% of this second asset in the markets cap, yet we are moving into DFS and largely drill complete on a 25 yr asset. What is the price of steel enhancing additives 25 years into the future?

further the market risks we have are negligible given we are producing lower than chinese manufacturing; thats a enviable position expecially when Vandium is 15 dollars now or like for like 50% higher than BFS assumption = 1.2b NPV and we are trading at around 10-12% of this...

However as long as vanadium is tied to steel we will continue to trade with global macro conditions which aren't favourable.

If your investment horizon is 12 months then fair enough the AVL offer isnt as great as other areas. But if you are interested in diversifying your portfolio across a 5 year horizon with high quality exponential return assets - AVL is a bargain!!

Fixed energy storage as well is yet to be realised, tesla power walls etc do not do an adequate job when weight is not an issue and we knew that there are ample use cases now for energy storage at home, at community, at industry and at scale - REDOX batteries are industry recognised best options for this use case for which AVL is a vertically integrated business with enough cash, backing, Ip to see it through to FID in my opinion.

I expect FMG will be a future client and this will be a heavy hitting headline given FMG's green initiatives

DYOR, bargain....

Also worth looking at that support line




Down side risk is much lower than upside risk = buy on a 5 year horizon