Tick tock, the DRC is still an effervescent lithium-cobalt rainbow and China Inc is still salivating. Game face on this week, plus 30c IMO. Bye …
Updated peer EV/Resource spodumene comparisons/notes below for the interested only:
TAW 23/11/2017
Mcap $194M @ 38.5c fps (504M 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) = ~$1,739t
AJM 23/11/2017
Mcap $674M @ 38.5c 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) = ~$1,528t
PLS 23/11/2017
Mcap $1,629M @ 96.5c 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) = ~$835t
KDR 23/11/2017
Mcap $467M @ $1.33c fps (350M 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) = ~$507t
BGS 23/11/2017
Mcap $88M @ 45c fps (196M fps, $6M cash)
Goulamina - Mali Ind/Inf resource 32.9Mt @ 1.37% Li2O
BGS EV value per resource Li2O tonne (90% of ~451,000t contained Li2O) = ~$216t
PSC 23/11/2017
Mcap $84.5M @ 5.3c fps (1594M fps, $4.7M cash)
Arcadia, Zimbabwe Meas/Ind/Inf resource 72.7Mt @ 1.11% Li2O
PSC EV value per resource Li2O tonne (70% of ~807,000t contained Li2O) = ~$149t
AVZ 23/11/2017
Mcap $427M @ 24c 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) = ~$72t current
Based on a peer on peer resource sector EV comparison AVZ is still extraordinarily undervalued
On a peer on peer sector average EV value @ $829t Li2O = $4,874M mcap or $2.74 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 27c, 80% 54c etc etc .
Again, to hammer the obvious, 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. I like spods of screaming buys.
Big week for all shareholders, action to come this AGM week and in particular post resolution ratifications on Wednesday or even before. Bye …
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. ~ Warren Buffett
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“Given the continued support from drill intercepts to date, we have also upgraded our exploration target for the entire project, to be between 1Bt to 1.2Bt of 1.25% to 1.5% Li2O, including between 300 and 400MT of 1.25% to 1.5% Li2O for the Roche Dure pegmatite alone”. … Mr. Klaus Eckhof, AVZ Executive Chairman, 12th September 2017.
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