I understand there's a lot of moving parts, and Im not a holder...

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Johnny87

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12/06/23

12:05

Post #: 68244209
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Originally posted by theghostwithin: ↑

I agree, but also see here that the biggest issue with AVZ is that it appears safe and correct exploration and contractu processes were being followed and that this situation has been caused by external malicious entites.

Digging deep enough, you will see these alien groups have had interest in and attempted to take control of the ground at Manono for quite some time. From what I can tell, this "group" of malicious actors started with Huayou Cobolt. One could Argue that Simon Cong is an agent of China, and his initial brokering of the asset to AVZ set the stage for the legal battle we are on today - but that is a rabbit hole I just cannot get to the bottom of.

As an investor that deals in fact and relies on past experience it is very hard to predict, antocipate or react proportionately to state level corruption between a local company and a foreign state owned enterprise.

This is the true definition of geopolitical risk - risk that we know exists, but failure to invest means loss of the risk reward model and to accept lower returns on local Investments within Australia.

It is not just Africa that has geopolitical risk, try as a foreigner (or even a local from another state) to open a mine of any sort in the United States (evem in mining friendly states such as Colorado or Montana).

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I understand there's a lot of moving parts, and Im not a holder so I don't know all of the finer details; but I disagree regarding management being blameless. Shareholders have every right to be angry at management for the following reasons:

1. They knew of the initial ownership dispute before it was leaked to the market. They never announced it, then were forced into a suspension when the bad press hit. This trapped all holders with no chance to exit. At least if they announced what was happening (whether they agree with the claims or not), it gives holders a chance to make up their own mind without being stuck in a stock for what is now over 12 months with no end in sight.

2. They have been suspended by the ASX for not following listing guidelines. That one speaks for itself. I wouldn't trust a management that can't even stick to the listing guidelines of the market they're trading in.

AVZ Price at posting: 78.0¢ Sentiment: None Disclosure: Not Held
15 Upvote

4 Great analysis

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