The Chinese are ruthless aren't they. I believe that the 2018 'Easter Eggs' and '7 Marvel Super Heroes' we're in play, but AVZ's resident expert in doing business in China failed to consider that, in the absence of competing bids, the Chinese might just wait. The pursuit of North American interest and the false bravado with "we're going mining" fooled no one, especially as, instead of preparing a mine, they continued to spend all their cash on further drilling, ads in the Fin Review and paying Airguide and JRL? to try and prop up the share price.
Relying on Hayou and DRC govt ownership, and on the Chinese spending $250 mill to gift AVZ their own road, again proved of no consequence.
The stock is so cheap now, the Chinese could pick it up for pocket change. Why don't they?! Likely waiting, watching the screws turn tighter, until AVZ beg.
AVZ can't raise more capital after this debacle, dilution is massive and the amount is only enough to pay Airguide's retainer for a short time. Offtake prepayment possible, but it's years from production, so a customer would want favourable terms. And likely offtakers in talks with AVZ are the same cruel bastards watching this SP decimation from the sidelines.
AVZ will have to sell the mine surely, but Hayou as part owner would have to be the purchaser. A takeover means they get 60% of a mine ... not ideal, but no doubt a Chinese company would be able to throw more weight around than straw weight AVZ.
Damn shame regardless. Takeover or mine sale all that remains imo
AVZ Price at posting:
4.1¢ Sentiment: Hold Disclosure: Not Held
