AVZ 0.00% 78.0¢ avz minerals limited

Risks to be Discussed, page-180

  1. 5,960 Posts.
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    You are making great analysis and questioning this stock very well. Yes you are the only poster that is calling this debacle correctly. All genuine holders should thank you IMO.

    I can talk a lot on the different issues of this (multiple times ramped up) stock. However the first and strategic thing that this giant deposit can't be mined in the current situations because of its location. It's landlocked. This has to be understood first IMO.

    The other very big problems which can not be solved are;
    - it's in the first class conflict zone. No more to talk about that.
    - lithium processing is new to mining companies, therefore it needs huge technical sport from the technical service industry. That does not exist in DRC. That has been a big problem for most of the lithium producers in WA where those service are very strong however they were also new to the lithium processing.

    DRC has got a little bit of ocean front at north the Congo river with bordered with Angola. However DRC mines are still considered as landlock as they have no option to export their mining products from that oceanfront towns. The distance from Katanga to to capital city Kinshasa is over 2,000 kms. It's out of reach. That's being landlocked for mines. All mines (copper, cobalt) at Katanga export their products through other countries at the south (mainly from South African ports).

    You can see from AVZ's own map which is considering routes to export that they are not even thinking to use DRC's own routes. All routes to going other countries. That's landlocked. AVZ's best route to the port is at least 2,000 kms.

    Most mines in Katanga use the ports in South Africa, which are 3,500kms away. However most of them send copper and cobalt which are much more valuable than lithium concentrate. So they still make profit.

    However you can't send spod concentrate to those ports and make money. It's not possible IMO (in the current prices indeed).

    MAP FROM AVZ PRESENTATION; ROUTE ALTERNATIVES;
    This map was given but South Africa route was not shown clearly because it would look too long. See it on my map below. It's terrible IMO.


    https://hotcopper.com.au/data/attachments/2013/2013931-13e386b7f2e4bc5e16510b2698f829c0.jpg

    DISTANCE TO CAPITAL CITY; (No option to export from there)
    The distance from Katanga to to capital city Kinshasa is over 2,000 kms. It's out of reach. That's being landlocked for mines.

    https://hotcopper.com.au/data/attachments/2013/2013933-833a90aaf2640a4363259b8b506f1ffd.jpg

    3,400km to South African port;
    https://hotcopper.com.au/data/attachments/2013/2013943-6224cb7516ff7a5c73096d221d16138d.jpg

    2,300 kms to Angola's port
    https://hotcopper.com.au/data/attachments/2013/2013945-4763845ac40717d6bba81b6db608cd97.jpg

    3,200 kms to Nabia's port
    https://hotcopper.com.au/data/attachments/2013/2013949-5d8d6ebaa99a8d5fae14136cc4e3c164.jpg

    2,000 kms to Tanzania's port (not preferred)
    https://hotcopper.com.au/data/attachments/2013/2013960-47b6bfa131f676deac08486cf2710ec8.jpg
 
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