AVZ (ASX) Running discussion on SP

Similar page to you here @kaiseriqbal

But then i also think AVZ canattract a higher valuation when you add in many of its advantages andexploration target of 1.5billion tonnes. Below i have detailed a list of why ithink AVZ should easily re rate to at least the same as other companiesits currently tracking. Then added in potential upside above whats currentlyknown to us all.

I think AVZ personally can reacha $4-5bn AUD market cap based on the first list and a 10mtpa operation beingannounced. 2 bags.

I think AVZ can then proceedbeyond this with factors outlined in the list below.

AVZ Current advantages(Re rate factors):

- Size is world class at 400mt.
- World class grade 1.65%
- Homogenous deposit = low stripratio. Easy mining process.
- Tin Credits
- Hydro Power potential and adetailed green study.
- Proven product test work.
- No need for floatation withgrade,
- Great long term partner in CATH, financed. Guarantees that our plant will bebuilt correctly as they have the knowledge and expertise.
- Offtakes largely locked in for Ibelieve 100% 4.5mtpa and 75% ish at 10mtpa.

AVZCurrent disadvantages, to be addressed:

- Some work required on thenearby roads (300km to the nearby Rail land concession)
- Some work required to get Hydroup and running.
- Sovereign risk, HOWEVER, I amextremely impressed with where the DRC is heading and this business forum willbe excellent for AVZ. In fact id go so far to say the DRC are doing themost out of any country to actively encourage battery plants etc in their owncountry.

Note: Having MrPei and CATL on board shows me china will get these disadvantages sorted ASAP,they wouldn’t buy in if they weren’t confident it would get sorted. Also I noteonce the 3 factors are sorted then what holds AVZ back from being the go toLithium stock and one of if not the largest producer globally?

Catalysts beyond 10mtpa and Roche Dure:
- CDL Drilling and potentialjoint venture for a two mine operation. >10mtpa- Additional PLS plants- Hydroxide plants - Battery plant nearby in DRC?- AVZ managing to acquireadditional % off the government.- Rail announced to Manono. For me the strategic advantage ofAVZ to become the worlds largest hard rock lithium mine and the fact it hasenough Lithium to supply CATL for decades gives it a huge strategic advantage.This advantage should be priced in and attract a premium over time with a hotLithium market.
AVZ has slid under the radar ofmany for a long time and i think 50c is really just the base. Personally seethis stock tracking to $1.50-2 by the end of next year based on theabove. As Simon Moores said, 2022 likely be a super bull market for lithium.
Stars aligning at AVZ and I am in no rush to partwith any of my holding.

Just a Sunday wet weather rambling.

All IMO, GLTA