Running Commentary on the SP Movements., page-5702

The DRC is a lithium-cobalt rainbow and China Inc is salivating. Future China Inc lithium supply security will go a long way to controlling the battery industry with massive advantages being achieved over rivals. Airguide are on the ball and orchestrating this one all the way. Next week will be doubly interesting, Bye …

Updated peer EV/Resource spodumene comparisons/notes below for the interested:

AJM 9/11/2017
Mcap $761M @ 43.5c fps (1751M fps, ~$39M cash, $140M debt facility)
Pilgangoora Ind/Inf resource 44.0Mt @ 1.00% Li2O (Prob reserve 34.2Mt @ 1.04% Li2O)
AJM value per resource Li2O tonne (~441,000t contained Li2O) = ~$1,725t

TAW 9/11/2017
Mcap $186M @ 40.5c fps (460M fps, ~$8.8M cash, $12.5M debt payable from lithium concentrate funds received – 15% per shipment)
Bald Hill (TAW 50%) Ind/Inf resource 18.9Mt @ 1.18% Li2O 149ppm Ta2O5
TAW value per resource Li2O tonne (50% of ~0.223Mt contained Li2O) = ~$1,668t

PLS 9/11/2017
Mcap $1,583M @ 98c fps (1616M fps, ~$107M cash, $127.5M debt facility)
Pilgangoora Ind/Inf resource 156.3Mt @ 1.25% Li2O (Prob reserve 69.8Mt @ 1.26% Li2O)
PLS value per resource Li2O tonne (~1.95Mt contained Li2O) = ~$811t

KDR 9/11/2017
Mcap $565M @ $1.62c fps (349M fps, $3M cash, $106M funds for mine development + $40M cash
upon SQM deal being executed/conditions ticked, no debt)
Mt Holland Li (KDR 50%) Ind/Inf resource 128Mt @ 1.44% Li2O + Au (KDR 100%) Ind/Inf resource >1M ozs
KDR value per resource Li2O tonne (50% of ~1.84Mt contained Li2O) = ~$614t

BGS 9/11/2017
Mcap $74M @ 38c fps (196M fps, $6M cash)
Goulamina - Mali Ind/Inf resource 32.9Mt @ 1.37% Li2O
BGS EV value per resource Li2O tonne (~451,000t contained Li2O) = ~$164t

AVZ 9/11/2017
Mcap $498M @ 28c fps (1,779M fps, $13M cash, no offtake agreements)
Manono - DRC (KDR 60%) B of Env lower resource 656Mt @ 1.5% Li2O
AVZ EV value per resource Li2O tonne (60% of ~9.8Mt contained Li2O) = ~$84t current

Make no mistake based on a peer on peer resource sector EV comparison AVZ is still severely undervalued

On a peer on peer sector average EV value @ $996t Li2O = $5,856M mcap or $3.29 per share potential without a country origin discount within the March 2018 qtr or when a JORC compliant resource is released to the market. If only, but even at a ruthless combined 90% origin of country discount/current non JORC resource status to the above calculated market cap, the share price would still be 33c, 80% 66c etc etc .

Either some of the Australian peers are overvalued on a simplistic EV/resource tonne value or AVZ and its African peer are still screaming buys.

Exciting times ahead for all. Bye …

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You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. ~ Warren Buffett