AVZ is currently trading at 90% discount to ASX peers' average valuation, in my view, it's far enough to factor in exploration risk and sovereign risk etc.
AVZ's 60% owned Manono deposit, is a brownfield project with over 70 years historical mine mainly in tin; also owns a larger surrounding licensed area (100%).
My comparison charts and table are ONLY for exercise purpose, DYOR as always.
At today's price 28c, AVZ's exploration targeted lithium resource is valued at $30/t, right side of the following table, compared with KDR's valuation $246/t and PLS's valuation $311/t.
If AVZ were having similar valuation per ton as KDR, AVZ implied price is $2.17/share.
Please note there're various factors affecting the valuation including deposit type, grade,size, location and development stage etc.
Only Attributable lithium resource is included.
Infrastructure:
courtesy to
@stakx &
@orionwoo
https://hotcopper.com.au/threads/ru...-movements.3704088/page-2646?post_id=28274958
Investments by multi-billion companies in DRC
From a Chinese research group:
Into the Congo: close observation of copper, cobalt investment opportunities
2017-05-27 18:49
M & A/
import/
export/
all the way
May 18, 19 of the research trip is quite full, a total of eight companies surveyed, you received a warm reception in the leadership gave us too much moved and inspired. On the afternoon of the 17th, we traveled from Huayou CDM to Kambove's Wanbao Comika camp (17th is the Bundesliga , the legal holiday, we suspended Somika and Rushi's visit); 18, we started from Kambove, after Luishia, first to Likasi , And then back to Luishia, a total of five companies visited, Wanbao Comika, China Railway International, China Railway green yarn, Hanrui cobalt industry, Peng Xin resources SMCO. On the 19th, we departed from Luishia's SMCO in the morning, passing through Fungurume of Luoyang Molybdenum and Mutanda of the Glencore, and went straight to Coruvezzi. We visited three companies, Huagang SCM, Shengtun Mining and Zigong Commus.
(Peng Xin Resources SMCO)
Overall, our visit is in line Katanga province of the DRC's southernmost (DRC most prosperous mining province) along the "Lubumbashi-Luishia-Likasi-Kambove -Fungurume-Kisenda-Kolwezi" This copper-cobalt mine with the journey from southeast to northwest.
http://www.sohu.com/a/144085903_475983
2. POTENTIAL INVESTMENT/TAKEOVER & OFFTAKE
My guess of players 1 - 5:
- HuaYou(MC: A$10b)
- CATL (A$26b)
- CMOC (MC: A$26b)
- ShanShan (A$4.5b)
- Greatpower (Private), partnered with JinChuan
Potential joint venture:
1. HuaYou & CATL
2. ShanShan & CMOC
3. Greatpower, might need to form a JV with JinChuan (A$11b) which has operated mining in DRC.
Greatpower, might be struggling to get an offtake.
http://www.greatpowerjc.com/en/newsx.php?id=49&lm=28
3. IN GROUND VALUE:
GXY's 6% spodumene US$905/t
AUD/USD: 0.77
AVZ mid figure of the exploration target:
1.Bt x 1.375% Li2O x 2.153 x 60% AVZ ownership = 19.5Mt LCE / 6% = 326Mt of 6% spodumene x USD$905 / 0.77 = $383b in ground value of lithium
Tin in ground value would be around $17b.
Total $400b in ground value.
Please always do your own research.
