imo you hit the nail. This deposit is so big, its hard to find...

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ConDino

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09/02/18

01:32

Post #: 30931927
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Originally posted by Roostar ↑

One thing that’s been rolling around in the back of my mind is that seeing as Dathomir are spending circa 280 million to upgrade roads in the region...also to port/s I believe, what’s stopping the likes of our JV Partner Huayou also jumping on board surrounding Li plays (should they bear similar fruit to Manono)?

It is likely Manono will have the largest processing plant... so is it feasible that it could become a central hub for all surrounding mines to also process from?

I realise my thoughts are a long way down the track, however Huayou were very quick to get in on AVZ and I can’t see why, if given the opportunity they wouldn’t also snap up other locals early to completely align themselves as the number one energy minerals miner on the planet....as per their own corporate mission. What’s another, say, 15 million when your turnover is in the billions?

Therefore, it’s possible that the Easter egg is in fact to be that AVZ will continue on (even at a reduced ownership) through to production, and the sheer size of what this JV could become is quite staggering. Via Huayou, AVZ (or whoever ultimately controls them and any surrounding successful entities) has the potential to completely control pricing of the Li hard rock market due to what is shaping up to be basically a negative $20 cost to mine....after tin credits...essentially Huayou could produce the cheapest Li batteries bar none. And isn’t that the end game for any manufacturer?...total domination.

I realise this is a big spit ball, but I don’t think it’s entirely out of the question, should potential competition arise next door or just up the newly paved roads surrounding Manono. Huayou have deep pockets, decades of DRC mining experience, plus have a corporate mission to rule the energy minerals market.

So an investment in AVZ could ultimately be much larger than many are presently thinking.

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imo you hit the nail. This deposit is so big, its hard to find someone being able to pay a fair price for the whole. Fundamentals of this deposit are so strong and the Li-wave is just starting to unfold so it is on the other hand hard to imagine a negative scenario.

Remember ML wrote some time ago, that near future cashflow will bring AVZ share to 1,20A$. Only possibility realising this is a JV including AVZ & shareholder. I can imagine one or several JV with strategic partners including AVZ to develop one or two mines and the processing plant/s for LCE & tin perhaps even tantalum.

AVZ brings into the JV/s Manono/Kitolo/Manono Ext. and the partner cash. The JV/s mines and the plants produce. Drilling and JORC is only necessary for the valuation of AVZ's stake in the JV/s. Easiest way to unfold the real value of Manono to its shareholder. Lets see.

AVZ Price at posting: 26.5¢ Sentiment: Buy Disclosure: Held
14 Upvote

0 Great analysis

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