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78.0¢ avz minerals limited

You raise an interesting view point @Obe wan and for the record...

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130 Posts.

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31/05/20

06:20

Post #: 44941603
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Originally posted by Obe wan: ↑

”we almost have $20m in the kitty / Example you can’t buy a house with 100% mortgage”

That $20m is working capital and the only direction it's going is south, as it's used to keep the lights on, for drilling, for construction of the camp etc etc....so it's difficult to be classed as ’security’..its working capital. even 20m is sub 5% of the finance amount of that $550m...you can't get a mortgage for under 5% security either......

AVZ need to lock in OT for financing. What institution is going to fund a company in the DRC, with logistical issues if they haven't even got a customer locked up.....if there's no evidence of customers confidence in putting cash down on a project....would you invest in it

The answer to that is NO imo.

OT deals are the root to what pays your financing back. how can you ’negotiate the best deal’, when you have no evidence of customer interest ?

Answer to that is you can't lMO.

you may say ’what about Yibins $10m they invested..isnt that interest!!!’

my reply to that is that it's chump change in the scheme of things...$10m for the largest lithium hard rock resource on the planet....seriously, you actually think that, the company giving away 9% of the company for 10m gets financial institutions all barred up, cements confidence....no it's lame tbh ; institutions are run by competent individuals.......do any posters in here consider themselves to be competent ?

If so; Did you ever think...with DfS so close...why did AVZ look to dish out x% of the company for 14/10m....(ok running short on cash and wanted buffer)....a number of sunset dates came and went...so AVz could have walked..also DFS arrived.....errrr wasn't everyone holding on for DFs data? Soooooo the data is there...but we still dish out basically 10% of the company for $10m......you’d have thought Yibins offer would have been gazumped...if you were a competitor to CATL, wouldn't you prefer to offer $15m, get your 10% and keep CATL off the register..i mean those expired sunsets and FIRB rejection opened the gates for others to raise there hand.....fact is no one did......do you not think financiers have wondered why no one else arrived and presented a better offer...$10m for billion dollar companies is sweet F all.

Thinking AVZ can ’negotiate the best deal’ with zero evidence of signed OTs...im sorry but imo is horse sh&t

The only way I look at these ’OT not needed yet’ posts, is that investors here are trying push back on the trolls, who will soon be back the longer this takes.

You are NOT negotiating from a position of strength if you have nothing on the table

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You raise an interesting view point @Obe wan and for the record I have always enjoyed reading both yours and @Royal_Viking posts

I do agree that $10m for Yibin 9% interest is 'Chump Change' as you say

What I do believe though is that it provides AVZ with short term cashflow which is critical as the world transitions through this COVID-19 pandemic and as world capital markets tighten at the moment

IMO the Yibin Deal was also done as a 'Sign Of Good Faith' for what stands to be our 1st and potentially largest offtake client for several years to come ( The Bigger Prize )

I'm confident of our BOD negotiating the best deal for both our company and shareholders

Exciting times ahead for AVZ Shareholders

Cheers

AVZ Price at posting: 6.4¢ Sentiment: Buy Disclosure: Held
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2 Great analysis

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