As stated yesterday, I have sent the below at 8:02am. I'll follow up with a call in the coming days.
I'll respond back to the forum with any update possible.
"AVZ Team,
This is a follow up email to the one I have written below, which is still awaiting a response.
After sending my original email dated 16/04, I contacted your office via phone and spoke with the secretary on the 18/05. I was informed that; Nigel and Leonard were both in the office, my email had been forwarded on; that the board was time limited but I would receive a response, even if that took a few days.
Those few days have now turned into 2 weeks. I understand there probably have been other items which have warranted more attention such as the items listed below. More specifically the ones which we're subsequently adjusted to be due in April as per the last quarterly announcement.
You may be in the process of compiling top 20 lists and whilst my name will not be on that list you shouldn't have to scroll too far down it to find me. That said, investment holding size should not make my points any more or less relevant. For your own interest, I posted my original email on the forum 'hotcopper'. It received over 200 likes and approximately 100 "Great Analysis" in a 24hr period. This may mean nothing to yourselves but for some indication that's probably the highest rated post I've seen across all stocks on the forum in maybe the last 3-4months. This is not an ego building exercise as I'm a fairly modest person, but it should be indication that the points I have outlined and clarifications sought are a sound representation of both current investors, as well as, perspective ones.
I have written a revised list of outstanding items with respective due dates still seeking clarifications and context additional to the quarterly and previously announcements. All items highlighted in yellow have been updated/altered from the original email.
1) 5 MTPA - Due April 2019 - This is overdue as of today
2) Transport Study - Due April 2019 - This is overdue as of today
3) Independent Research Report - Due Nov 2018
4) Patterson's Research Report - Due Mar 2019 - (Not sure there's much incentive given they've offloaded most shares)
5) JORC update - Due April 2019 - This is overdue as of today.
6) Metallurgy - Cores due to arrive in April - This is overdue as of today
7) 10% Project interest increase - How does AVZ plan to pay for this purchase, what incentive would Cominiere SA and Dathomir have in sellng 5% if not at a significant premium to current market valuation?
8) 5Y tax concession - Due??
9) New Chairman - Mentioned Jul 2018 - Severely overdue - Can you be more specific as to where the discussions are at, or the type of candidates shortlisted, can the date of appointment/s be refined. Can you elaborate on why this has taken close to 12months.
10) Expanded management team mentioned jul 2018 - Is this complete?
11) Australia Roadshow - Just a suggestion
12) Transparency on SPP funding - Were other funding arrangements presented, what were they? Why weren't they entertained? What was/is the strategy on funding moving forward? The last one as you must be aware was a disaster. I think AVZ needs to detail what it's specific strategic plan is. i.e. "Huayou remains our lead candidate to fund capex for plant construction. We are currently in discussion with, (enter countries, or non specific details to the entities still in discussions). Also, can we outline what is preventing investment. Is it price? is it that the investors want the DFS complete, the transport sorted, a chairman or is there just a general lack of interest.
13) Transparency on Huayou relationship - "Talks remain positive" isn't exactly a clarification. What is their current motive? What is their desired position moving forward? Re AVZ - see above
14) Transparency on AG and JNS deliverables - How is their value or success measured. What are their explicit guidelines? i.e. are they responsible for tabling deal, or performing introductions? Additionally do you expect to review their contracts?
15) Transparency on Low-Ball Offers - Have offers, however informal, been offered. By whom, under what circumstances, at what prices. and additionally. Why haven't they been entertained as legitimate. Would be my recommendation that these low ball offers would go a long way to moving the S/P in the right direction. Which in turn allows AVZ to leverage more favourable discussion or funding arrangements.
16) DFS pushed to Dec 2019 - What is the critical path for it's completion. Was it shifted to align with infrastructure upgrades or is it internally constrained?
17) Do the directors intend to buy shares on market at some point in the future. See AJM for example where a director invested $15M in his own coin. Obviously individual circumstances may prevent such an investment, but given the lacklustre share performance and recent performance awarded shares this may be a way re-incentivise outside investment. Another proposal could be to forfeit remuneration or at least a portion of for share allocation.
I hope that this email is forwarded on like I was told the last one had. I have drafted this and intend to send it at 8:01am AWST pending no announcements are made in relation to them.
I'd also like to take the time to commend the team in the latest quarterly. It was a large improvement on previous announcements and provided a good level of context on a broad number of points. I think AVZ needs to now be cognisant of it's current largest hurdles, (IMO - Chairman appointment, transport studies, Strategic pathway to securing funding) and really zero in on these items and provide as much detail as possible.
As previously mentioned, I would like to share responses in public forums of your choosing. Should that not be permitted please indicate so and or contact me on my details below to discuss over the phone. Should our schedules permit I'd also be happy to arrange an informal discussion in person.
Regards,"
SF2TH
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