Running discussion on SP, page-49269

The below is just some thoughts which posters can debate and correct as seems a lot of moving parts in understanding the Dathcom JV itself.

IMO, it probably doesn't matter. If you look at Talison, it is Talison that sells to their JV partners (in their respective share ownership of Talison) as does Mt Marion through Reed Industrial Minerals (google is a friend). In other words Talison and RIM are operators.

AVZ may sell, but this is the key, the profits get distributed into Dathcom so the question is are the contracts with the operator of the project in Dathcom, or AVZ itself, or should they be treated the same. Essentially, you look at AVZ as been the operator of the project, albeit it has always been interesting to me that the binding agreements recently signed were not 'signed' by each player in Dathcom itself. Now if you got a JV in Dathcom - new entrant - it just becomes superficial on the selling aspect IMO. I am sure there are back to back agreements in Dathcom itself with how AVZ sells if that is what one thinks here (orelse how do you return profits back to Dathcom and get it to pay the right amount of tax to the DRC government, which would be what teh DRC govt will be interested in and meaning they want a fair price for what is been sold and by that I mean a market type price that can be referenced etc etc).

Also if you look at the DFS, basically the DFS is about sharing profits as AVZ in that DFS got 60% of the profit (noting now it has/is increasing its stake to 75%). So it is a bit superficial that aspect and IMO is not that critical in how a JV operates. Or another way to look at it - the DFS was for the whole project, recording total project NPV, and then AVZ got 60% of that, so the DFS may as well as been read as a Dathcom DFS.

JVs can also be unincorporated or incorporated JVs as well, so not clear what Dathcom is. They can be based on equity lifting, which is a feature of an unicoprated JV, meaning the operator just provides the share of costs to each JV partner, and the JV partner enter into their own selling contracts which you see in the LNG sector. Or it could be the selling is done under the company itself, including to each of the JV participants, especially where some JV partners have downstream processing facilities, meaning those without downstream processing facilities do get benefits of the sales.

From a DRC gov perspective they would seek to ensure the selling price is at a reasonable price. Does it matter - probably not because say you had a new player in Dathcom, basically AVZ would respect that JV arrangement IMO

Obviously others may have a differing view, as IMO how Dathcom works has been not stated too much in teh past, albeit it is clear that the operator of the project is AVZ.

As a final point how teh voting rights on Dathcom work I wouldn't know, but I suspect despite DRC govt having less 'sahres' than AVZ I wouldn't be saying that AVZ can do as it pleases btw either. How a JV board operates can be different to share ownership is my point.

No idea, but they have drilled CDL before. It is closer to surface btw and probably has a much lower strip ratio than Roche btw given it is from surface (noting the Roche strip ratio is very very very good in itself). Why they are continuing the drilling I wouldn't want to speculate in the now.

A while ago I posted on here about a two mine theory as well. I simply see CDL as a future mine, unless of course they might examine a short term blending outcome given the METs they did on CDL early last year which were good as well. A blast from the past - this post went into a two mine theory a while back, a long long time ago - Post #:30119771

All IMO