It was great to meet Nigel and Graeme last night and meet a few share holders. I won’t share specifics but just some thoughts in general. Long term like most holders I still view AVZ getting to production on a large scale. Years ago old mate superninja went on about how AVZ would dominate the market and despite everything that happened I think he’ll end up being correct. This is the cycle of commodities where a few players end up dominating the market and AVZ certainly has that potential. I guess some might not be able to see it yet but even with the screaming EV demand and lack of lithium supply about to hit, deposits around the world in size and quality just don’t exist. If they did they would have been discovered by this stage and on their own path to production.
Having had chats I think there is a lot of fire in the belly to prove many people wrong about the company. So much so that imo reasonable TO offers have been rejected to seek a real value for the company. Right now its undervalued as few institutions have bought in. Its mainly retail however I think that will change when the green light is given with funding sorted and again when production begins and the revenue closes the gap to its real valuation imo $1+. While it may be frustrating with lack of insto’s it also presents an opportunity. The future expansion plans from the presentation are what can really value add as well and despite some companies suggesting that’s the direction they’ll take there are few if any that exist globally that could actually handle the volume and quality the world will require. While it might sound like a pipe dream at present if management can deliver and later expand from revenue through hydroxide JV’s in Europe and India there’s no reason why a $5-10B valuation wouldn’t be appropriate with the $ it would produce, including any jurisdiction discounts. Approx 10-20x market cap rise from here. Nothing ever works out perfectly but the potential is there and I guess why many of us hold.
It depends on your time horizon but the long term potential is very much still in tact. If they deliver it will also be bitter sweet sticking it to the doubters and hanging on for the ride.
GL all.
AVZ Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
(20min delay)