Running discussion on SP, page-57536

Did some back of the envelope calculations on Manono this afternoon:

Roche Dure pegmatite 130MT reserve, probable reserve 400MT.
NF stated likely long term SC6 price approx $1200USD/T (equates to approx $1657AUD/T).

Roche Dure - current value of reserve / probable reserve:

1. Proved reserve of SC6: 130 000 000 x 1657 = $218 Billion AUD
2. Probable reserve: 400 000 000 x 1657 = $662 Billion AUD

51% (currently) owned by AVZ

= $109 - 331 Billion AUD

Current Market Cap of AVZ $1.95 Billion

= UNDERVALUED

Note, this calculation doesn’t take into account:

1. Second pegmatite at Manono - Carrière de L’Este - drilling results(4 holes), higher grade still at 2%, “size of CDL rivals Roche Dure“(words of NF)
2. Possible purchase of 15% of Manono from DRC in future
3. CAPEX
4. NPV
5. Value added products (eg PLS etc)
6. Future lithium prices (Note: Pilbara Minerals received $2240USD per tonne for SC5.5% in September 2021 on BME, equates to approx $3094AUD)

I would be very surprised if AVZ is not worth over $10 in the coming couple of years