LTR FACT FILE
SOI – 1, 814b
Strip ratio – 8/4/1 ( open cut and underground mine )
1 MC – 870m
Offset credits – tantalum
2 MD – Tim Goyder
DFS due Q4 2021
3 Cash at hand – $16.4 m
No offtakes
4 Kathleen Valley mine
100% 0wnership
5 Location – WA
Other projects include Buldania and Moora aka CHN
6 Size of deposit – 156mt @1.4%
7 Lom – 40yrs
AVZ FACT FILE
SOI – 2.9b
Ownership – 60% plus 15% extra option
1 MC – 578m
Strip Ratio – negligible ( open cut from surface )
2 MD – Nigel Ferguson
Offset credit – Tin & Tantalum
3 Cash at hand – 8.9m as at December 2020
DFS complete April 2019
4 Roche Dure / Manono mine
2 offtakes for Lithium, 1 Offtake for Tin
5 Location – DRC
FID / BFS due Q2 2021
6 Size of deposit – 400mt @1.65%
It must be noted that Carrier deLeste deposit and others is potentially 3x bigger than Roche Dure )
7 LOM – 20yrs ++
AVZ – Tier 1 Comparison
LTR – Tier 1 Comparison
a) generates $300 – 600m p/a( yes )
a) generates $300 – 600m p/a( yes )
b) Mine is expandable in multi avenues( yes )
b) Mine is expandable in multi avenues( yes )
c) IRR is greater than 12%( yes )
c) IRR is greater than 12%( yes )
d) Sits in the lowest cost quartile( yes)
d) Sits in the lowest cost quartile( ??)
e) The mine will be produced irrespective of the business cycle( yes )
e) The mine will be produced irrespective of the business cycle( ?? )
The DFS in Q4 2021 will reveal more
AVZ Pro’s
LTR Pro’s
1 Tier 1 asset on steroids
Sovereign risk - WA
2 3 x offtakes with more to come
Existing transport and infrastructure
3 Including premium lithium sulphate potentially to Europe ?
Solid and respected management
4 BFS / FID imminent.
Has recently brought in ex BHP director Peter Ottaviano to expedite proceedings
5 Has the ability to produce lithium hydroxide
Has other projects including Buldania and Moora, not a one trick pony
6 Production timeline perfect timing for immature lithium sector
AVZ Con’s
LTR Con’s
1 Sovereign risk - DRC
Is KV a Tier 1 asset as proclaimed, re strip ratio ?
2 Transport options refined but not ideal
WA has expensive labour force
3 Too much Chinese involvement with offtakes at present, needs balance
WA labour force is under developed, in short supply
4 Is management trustworthy ?
Could this factor effect cost and production timelines ?
5 In the past….NO , currently, better, with offtake execution
No offtake, Chinese investment will be restricted via FIRB, this could delay BFS /FID
6 Is AVZ mine suspect to a coup should China / Australian relations turn further sour in future ? China has a large influence in the area
Can LTR produce Li Hydroxide ?
Will LTR be competitivein a mature lithium market based on Tier 1 assumptions ?
For disclosure, I hold both companies in my portfolio for different reasons, I always like to challenge my investments which is why I set up this PEER COMPARISON thread, so intelligent conversation can be had about both companies futures given the data
presented, which in the main, has come from the companies website but the PRO & CON is subjective to my DYOR.
So for a balanced discussion, i invite the following posters from each coy for special comments and insights, please enlighten if there are any errors.
AVZ - @elphamale, @BlueSkies1711, @Obe wan, @dossantd, @Daripper, @Deboss, @cruiser51,@qball, @superyacht,@Roller62
@Mining8, @FrankMe,
LTR - @anatol, @FlashPoint, @vmp, @Bunn-Wackett, @Bullishterrier,@Batman0480, @poorserf, @Joannie,.@Kikker1959
@Bigmarn, @Disclosure,@Process1, @timmi
Every 2 weeks or so, I will compare another company /s prospects , this provides an excellent opportunity for newbies to make wise investment decisions going forward.
I welcome comments from holders and non holders in equal proportions, just as long as its respectful.
( All information is factually based on companies website, but the PRO & CON is subjective to my DYOR )
So IMO and not financial advice.
Have a great easter !!
