I'm a little in camp a little in camp b. 80 days is fairly brief in terms of an outside entity doing due diligence and jumping in. I'm more inclined that they are more likely to get buy in. post DFS (probably around 80day mark) from additional external parties.
AVZ register looks pretty good with Tianyi (catl backed), Huayou, Lith Plus (catl backed), global x.
Huayou being linked to LG Chem and Tianyi Linked to CATL means we have direct competitors on register. Perhaps NF and Co trying to drum up some competition. Remembering LG chem is Korean and CATL chinese.
https://www.autonews.com/china/tesla-reaches-preliminary-battery-supply-deal-catl
Again interesting timing of all these deals. CATL signs agreement to supply Tesla. couple days later CATL inks deal with Tianyi. Same day Tianyi announces stake in AVZ with binding offtake discussions to follow.
Personally think Tesla is going to dominate the western world for EV's - any contracts or company's linked in that food chain would be fantastic. Elon is the kind of nutcase that would sink 500m into DRC to secure 100Y of lithium supply. Not that i'm even remotely assuming this would be the case - but avz being linked to that supply chain in any form is great long term prospects.
Regardless of all that, back to Tianyi - why is this a key appointment? See the below.
2 keys posts from
@8horse and
@Obe wan explain why Tianyi coming on board bodes very well for AVZ.
Hydroxide plant in construction. 5 year agreement with CATL to guarantee them lithium supply and CATL to support the rapid development of their lithium business.
Post #:
41411344
Post #:
41413447
Supported through the below;
https://www.businessnews.com.au/article/Chinese-to-plough-14m-into-AVZ-s-massive-lithium-play
'Yibin's lithium plant expected to be completed by Q2 - 2020' stage 2 targetted for 2023-2024.
Interesting Nigel suggested phase 3 for AVZ was a lithium hydroxide plant. IMO AVZ will supply an SC6 product to Yibin (Stage 1 for AVZ) with intention to add flotation circuit circa 2022 (stage 2) - May vertically integrate into Yibin's stage 2/3 upgrades to fulfill their stage 3 hydroxide plant aspirations.
As quoted by KDR's MD and Greenbushes Tianqi - 'being vertically integrated is the key to success in this business'
Personally don't care if AVZ gets in bed with the chinese - as long as the deals are mutually beneficial. But also agree that having some european/us investors/interest will only bolster AVZ's leverage in negotiations.
SF2TH
