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78.0¢ avz minerals limited

Thanks Tea, I pray, hope and encourage shareholders to remain...

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DutchAussie86

764 Posts.

137

24/02/20

16:54

Post #: 43118260
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Originally posted by JasmineTea ↑

Risk seems to be missing from all conversations. This thread attempts to capture a small number of key AVZ risks.

A. It should be noted that AVZ has yet receive approval from FIRB / Chinese Govt Approvals for transaction. This is due in 4 days. Only 2 massive stumbling blocks. Stumble....

See below:

B. Funding if approval is not met in next 4 days.... - based on last Quarterly AVZ Crashflow statement (AUD 2.164 million - as of 2 months ago) if AVZ does not receive these funds it is highly likely the company will need to seek alternative funding. Expected outflows for Jan to Mar is AUD 2 million. Un-likely in my opinion that company will leave the crash balance to the last 1 million. HELLO PATTERSONs.... they did a great job last time. Ask
@readyaimfire

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02197424

C. How the current shareholders of AVZ value the Manono Project paying - for the additional 5% - deposit for USD 500k deposit with balance of 4.5 USD million remaining, which values AVZ Manono project at USD 110 million market valuation. eg. AVZ (potentially will hold 65%) currently holds 60% and provides a market based transaction valuation of USD 60 million for a company that is trading at AUD 212 million. Shareholders are paying almost 400% more than what project holders are selling shares at. Project has more value than shares...….

D. AVZ stated in last quarterly linked above that the "potential" (not 100% guaranteed) funds would be used to secure this 5% project interest. So if the funds do not come in AVZ will need to raise 5 million ++ - as they do not have enough money based on current cash to complete DFS by March 2020. Not sure about the 99% DFS complete statement by AVZ may be difficult to complete without the money you were planning to have.

E. Have already posted here impact of USD 700 for spodumene used in Scoping Study vs market current price of USD 490 tonne. The Scoping study used a much much higher recovery number than now being demonstrated to the market by recent metallurgy information.

F. Dathomir ???? Where art you ??? They were meant to do the hydro for receiving 14%++ on company equity. Where is that at ??? Why did they get the equity if they are not delivering any value? Let me remind you Nigel signed off this as a director - ASX anyone!!! - something does not add up here?

G. How anyone believes that AVZ will receive lower % interest rate than AJM or PLS when they operate in Australia just shows how out of touch many posting here are. AJM / PLS demonstrate the lowest or best possible outcome as they operate in a country with much lower risk.

H. Why would someone fund this project without AVZ showing the capability to mine>??

I. AGM Report / Presentation CAPEX USD 350 million - AUD 530 million. Can someone point out 1 example of someone funding an Australian company in Africa for this quantum of funds ?

This is a solid reality check to the overall positive sentiment.

I prefer producing lithium companies in a market that is plagued with risks.

Do you feel lucky punk? Did I fire 5 shots here or 6 ?? I do love movie references.

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Thanks Tea,

I pray, hope and encourage shareholders to remain positive and focus on what we can control. Not speculative talk of which will never happen.

I'm glad you're looking out for us as a non holder and fervent PLS believer.

AVZ Price at posting: 9.3¢ Sentiment: Buy Disclosure: Held
27 Upvote

0 Great analysis

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