A key appointment is the Chairman, as i have indicated in the past, one been totally focussed on AVZ and nothing else. NF is too spread out with his other roles and needs to focus on AVZ and ensure timelines are met because timelines here are hardly ever met.
If AVZ is to get to production by 2022/23 (even at a 2mtpa ore feed facility before ramping u to 5mtpa) the following needs doing:
1. Completion of MET tests - exactly what crush size is going to be adopted if the option is to commence DMS before retrofitting floatation. The MET tests are also critical to the completion of the DFS - Post #:
40855005.
2. Pit needs to be drained and then drilled. Full stop, as that offers the best way forward in the DFS- Post #:
407156073. Transport, transport transport. What are the options and can AVZ do any low spend capex to ensure teh route is there for them in 2022/23. Virtually need a full time person/Chairman simply to keep ensuring these ducks are lining up. Day to day operations.
4. The fact point 1 and 2 has not been completed makes completing DFS quarter 1 difficult IMO. Point 3 is an issue in itself but from my perspective 1 and 2 still need to be finalised.
4. Whilst offtakes and equity for finance would underpin the DFS, needless to say a completed DFS with the option of what they intend doing is a fundamental key to facilitating the offtake discussions which IMO need to be done by end 2020 if there is hope that any shortfall finance can be arranged for facilitating construction build and entry to market 2022/23. Timeline snow getting incredibly tight is the point I am making.
5. Customers - well discussions need to commence especially with European customers (as IMO the Chinese have played AVZ like a fiddle) to get this moving to mining. That will either make the Chinese show their hand but at least AVZ has a back up strategy IMO
6. The resource, we know that but it won't mine itself without action, is there but need a transport solution and buyers locked in - Post #:
395102387. I posted this on the LTR thread today - Post #:
40973495 At the end of the day there are opportunities for AVZ to enter the market but management need to get there act together. At the end of the day I see PLS addressing its issues btw, as well as other greenfields players entering the market.
8. If AVZ does not get its house in order it will IMO not make a 2022 - 2025 market entry, despite having a much better resource than its competitors grade wise and having good deleterious elements, meaning because it is also a very large homogeneous deposit converters will have confidence that the product will always be on specs in sufficient quantities, and be a lower risk strategy in meeting battery needs. If they can't get the AVZ product they will just continue with existing riskier practices of blending its spodumene purchases, if that is what they are doing, to what they hopefully need to meet battery maker needs. Point of this Point 7 and 8 is despite AVZ having a great resource, well the market doesn't wait because EV batteries are required, so if you cannot supply, well you source your spodumene (or brines) elsewhere full stop because at the end of the day i.) consumers want EVs, ii.) EVs need batteries, iii.) batteries need lithium chemicals and iv.) lithium chemicals need spodumene (or brine where possible). Note the order - it starts with consumers, not spodumene producers, because demand is consumer driven and supply is EVs themselves so it is about matching the two and the two will determine which suppliers live or die (and the easiest way to explain that is no one waits for anyone when there is a $ to be made).
And from this post, Post #:
40795197, I'll just say what I think about what AVZ needs as a Chairman and what it means to have skin in the game - been paid highly as say a MD and given free performance shares IMO is not as good IMO as been either i.) paid low and given performance shares as milestones are hit or ii.) been paid well and buying shares on market.
At this stage need full time staff, especially a full time Chairman and/or MD with only AVZ as the focus.
All IMO IMO
