As Frustrating as this past weeks trading action has been for most, March has still been a positive one for AVZ Minerals. Take a gander at my ASX Lithium Tracker below for March to date.
AVZ is not the penny stock that will shoot up 100% in a day, this project will deliver long term growth for those who are investing for future production and dividends.
Whilst the flippers and traders would have loved a short term sugar hit from a "Diversified" customer, at the end of the day it won't matter which country our product is shipped too really. ~US$750 per tonne for SC6 from China in the bank is the same as US$750 per tonne for SC6 from Korea, Japan or Europe (on the same terms). Long term holders will be rewarded all the same in time
What has become increasingly apparent to me is that a large number on this thread are looking for the quick jump up to 40c on the back of the next month and looking for a prompt exit on the back of that jump. It should have been rather apparent following Ganfeng this isn't that kind of stock.
IMO a supply deal for 160ktpa with Ganfeng is just the same as a 160ktpa supply deal with Freyr, Northvolt, Tesla, LG, Panasonic or SK. The short term traders get all hot and fuzzy over a household name "Pre-Production", but when the product is being delivered and revenue is coming in, it is all the same TBH
The Manono Project has been massively derisked this week and will continue to do so over the remainder of H1 if Nigel can deliver to targets.
The only negative with a lower SP at present will result in a larger dilution come funding time for any equity component, apart from that the daily swings are almost irrelevant.
In contrary to the above points, the company has made it abundantly clear that PLS (which represents ~25% of DFS planned output, will be sent to Europe, I look forward to seeing this announced in Q2.
All in my opinion of course and good luck for the months and years ahead as Manono monsters towards production.
