AVZ 0.00% 78.0¢ avz minerals limited

outperform recomendation

  1. 882 Posts.
    2 camps at the moment appearing;

    1. some say talk about AVZ through to producing lithium carbonate and tin etcetera,
    and
    2. the up to feasibility study transaction to a China group.

    Bias is towards 2.

    With 1. Would the set up be "years away" as stated in the article or much quicker as suggested with BGS?

    Would Michael's 5x to possible 10x bagger evaluation be the 'rock bottom'? I'm trying to guage his conservtive estimate for what it may have left unsaid.
  2. 1,743 Posts.
    lightbulb Created with Sketch. 106
    Superninja wrote: "Assume worst case this is a 100MT resource (85% reduction of Hartleys expectation in note) x AUD 150 / ton = 150 million market capitalisation = 3x to 4x upside now. Hence my opinion under a low case scenario the next capital raise should be 5c to 10c / share."

    Hi. A newbie here to AVZ (and hard-rock lithium). Just read thru Superninja's piece singing the praises of AVZ. Correct me if I'm wrong but it appears he may have underestimated his AVZ fair market cap calcs and by a factor of 100 times ...

    He assumes a "worst case" resource size of "100MT". I took this to be 100 megatonnes (100 million tonnes) although I believe the correct SI symbol for megatonnes is actually Mt. And I assume that was 100Mt of spodumene (containing 1.6% Li) that he is valuing at $150 per tonne based on the other Li deposits and their owners' market caps. If so, then 100,000,000 x $150 = $15B for billion (not $150 million).

    Of course I'm not suggesting that AVZ should have a market cap of $15B but I'd appreciate if anyone could clarify these calculations for me. Perhaps I have the bull firmly grasped by the udder?
 
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