AVZ 0.00% 78.0¢ avz minerals limited

@stakx's point is very good, yet only as a case study. If the...

  1. pbx
    506 Posts.
    lightbulb Created with Sketch. 159
    @stakx's point is very good, yet only as a case study.

    If the Chinese pulled out of the infrastructure that benefits AVZ, there would undoubtedly be a massive increase on our project costs. That theoretically gives them bargaining leverage in TO talks. It would also put off non-Chinese entities from competing.

    However, if we look deeper into the whole foreign investment/DRC government arrangements, we will recognise that it may be the desire of investors to profit that directs funding, but it is the solid need to modernise the country's impoverished infrastructure that invites and effectively permits such movements.

    It is the fulfillment of the DRC preset requirements that allows a working balance to every involved party's satisfaction.

    The roads/trains/electricity that serve AVZ were not conceived as an idea or implemented on the ground for the convenience of our suitors. They are part of the country's larger infrastructure upgrade aiming at elevating its standards of living. Commitment to and honouring of their agreements and timeframes makes foreign investors likable to the government and the government likable to its people. It is a matter of accommodating each others needs, and ranking it in the correct order, the needs of the people, the needs of country, the needs of the government, the needs of the investors.

    The Chinese cannot pull back on what benefits us, because it is a pre-agreed continuation of an already existing network that serves communities along its path. Furthermore, the Chinese cannot pull back on what benefits us, because time is money and being reasonably confident that they will be the ones mining us, they would want this into production neatly and swiftly.

    I am saying that they are reasonable confident and not certain, because as @8horse pointed out the North Americans have been investing in the DRC, lately.
    They cannot be certain because the mining licences are issued by the DRC and not the Chinese government.

    That cannot realistically believe that they can acquire our resource cheaply, when only yesterday it was proven that a director selling can no longer affect our SP.

    AVZ is definitely running on its own merit now, and whoever takes over or joins this camp will be paying at least fair value.

    Have a nice weekend, all.
  2. This thread is closed.

    You may not reply to this discussion at this time.

 
watchlist Created with Sketch. Add AVZ (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.