Running discussion on SP, page-4298

Very constructive, professional response from AVZ’s secretary, Mat, to my somewhat prickly email.

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Took your advice on board as the Company has nothing to hide in this regard to hopefully it’s appreciated by shareholders.

We will be posting the updated register at the end of each month on our website.

Regards
Mat

Mathew O’Hara | Corporate Consultants Pty Ltd
Level 2, Suite 9, 389 Oxford Street, Mount Hawthorn, Western Australia 6016
| ( +61 8 9380 6789| 6 +61 8 9380 6761| * [email protected]

On Wed, May 2, 2018 at 8:16 PM, Columbo wrote:

Mat,

Here's an example of how companies that have nothing to hide handle the Top-20

http://nzuricopper.com.au/top-20-shareholders/

and here's another one

http://birimian.com/Top20Shareholders.html

Columbo
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Hopefully, the beginning of a more open information policy. AVZ will benefit from doing so as it has many loyal SHs willing to weather a storm or two (or more) but who don’t like a “our-way-or-the-highway” attitude simply because the stock performed well last year. For starters, it’s not doing well now. In fact, it’s worst among eight Lithium stocks I tracked since December 1, 2017:





Also, the parallels drawn to KDR when they were at a similar stage in defining JORC are flawed IMO. AVZ’s JORC will undoubtedly be impressive, more so than KDR’s, but the infrastructure issues are the main difference. This issue is not highlighted enough IMO, despite efforts of great posters like @Ubique13 who raised the issue of power & energy requirements already a year ago (see his post 24906153), @Dr_Manhattan who has provided a wealth of information on transportation issues (33028459), and more recently @ozblue who has warned there is no explicit guarantee that the Chinese, i.e. Dathomir, have made financial commitments to build roads (33106141).

There seems to be a myth among AVZ holders/posters that “the Chinese want the resource so badly they have started building roads, hydroplants, etc. or will do so soon.” There are two reasons to be somewhat skeptical.

1. All we know is what the company said in their November 20, 2017 ann:

Infrastructure Update – Road Rehabilitation

As previously advised, Dathomir Mining Resources sarl, one of AVZ’s joint venture partners at the Manono Lithium Project, agreed to facilitate the rehabilitation of the road from Lubumbashi to Manono.

AVZ has been advised that an agreement has been entered between a Chinese affiliated investor group (CIG) and the DRC Ministry of Infrastructure, Public Works and Reconstruction pursuant to which the CIG will fund rehabilitation and bituminising of the road from Luambo to Manono, covering approximately 466kms of road surface. The road from Lubumbashi to Luambo has previously been bituminized. The estimated cost to complete the works is US$285 million.

(https://newswire.iguana2.com/af5f4d73c1a54a33/avz.asx/6A861143/AVZ_Manono_Project_Update)


It’s open to interpretation, but if in a year or two there is no road, the language “AVZ has been advised” might well translate into “don’t blame us, we were only advised”. As the infrastructure issue is pertinent to all AVZ investors, I would think seeking clarification about Dathomir’s commitment is crucial.

Also, no timeline is mentioned in the above ann, which points to a second issue.

2. When the potential buyer (by TO) of the Manono resource is the one supposed to develop the infrastructure, then who is really holding the cards?

Yes, the Chinese need Lithium. They need it now, next year, and more so in 5 years. Indeed, they need a LOT more in 30 years when all cars, buses, ferries, gadgets, etc. are electrified. If China is key to building the necessary infrastructure for Manono, why would they not use their position to delay its development? Their interest, surely, is not in maximizing Australian SHs' wealth, but to acquire Manono at lowest cost and at a time that best suits Mr Xi’s “One belt, One Road” vision.