AVZ (ASX) Running discussion on SP

Originally posted by Mining8: ↑

Fantastic buying yesterday and I particularly liked the capper getting capped when the $1.5 million sell line got wiped! I expect buying to continue today as AVZ the worlds largest lithium resource is still well undervalued!

The penny is starting to drop that to build these mega battery factories you need a sheet load of lithium for the batteries made. AVZ has 25% and rising of the world's lithium and will need to come online ASAP!-PRESS HERE

The Current Lithium Wave:

The lithium wave we are in the midst of is only beginning and will be the strongest and most sustainable of the waves that have come before. The reason for this is three fold. First there has been government mandates where emissions have been capped necessitating green energy solutions where battery storage and electric vehicles are a priority and also mandated. Secondly there has been industrial mandates where car manufactures have retooled to electric models and mandated that internal combustion engine vehicles will be phased out, where even Toyota joined the party not wanting to suffer the same fate as Kodak. Thirdly, when lithium prices were low there was a lack of exploration and lack of development to establish lithium supplies. All of these factors have put terrific pressure to secure readily available(AVZ-the largest, high grade, at and near surface, homogenous. lowest strip ratio) and easy to convert to battery grade(AVZ-lowest impurities of any global deposit).

And from Lithium Guru Simon Moores-CEO of Benchmark Mineral Intelligence

Therefore there will be a continual rise in lithium prices because of the structural deficit in lithium caused by these factors and AVZ with 25% and growing of world resources will be in H.U.G.E. demand! What is also a bonus is that AVZ has the 3rd largest tin resource globally and lithium and tin are the most important metals in new technologies or the electrification revolution, tin being an important metal as used in solder for electrical contacts with tin in short supply and prices also going through the roof!

AVZ's Share Price:

Because of AVZ's mammoth resource with its easy access to large amounts of lithium(at and near surface, homogenous, lowest strip ratio) that can easily be converted to battery grade lithium because of its low impurities AVZ has the capacity for large output and vertical valued added integration(primary lithium sulphate and lithium hydroxide which are highly refined and therefore more valuable products as well as SC6).This will be reflected in the imminent BFS when you will see the NPV/IRR. Now add the fact that we are in the strongest and most sustainable lithium wave with structural lithium deficits being predicted for decades and AVZ will be a growth making and dividend
producing cash cow!

Very Exciting Times for AVZ holders and a lot of growth(bags) to be made from here(76.5c) and not a time to be on the sidelines with all the strong rerating catalysts about to hit, especially the mining licence that will only trigger other catalysts and funds to push the button!

Short Term Rerating Catalysts:

-mining licence

-collaboration agreement and HEPP

-extra funds means that the extra 15% equity in Manono from the government can be negotiated from a position of financial strength

-SEZ-tax, royalty and duty benefits including VAT exemption and tax holiday increasing the economic bottom line and decreasing an already amazingly short payback period

-BFS-expecting major increase in already stellar NPV/IRR, plus shortened payback period with massively increased lithium prices than when original DFS was done, increased resource from wedge drilling, tax benefits from SEZ, the huge increase in output to a 10 Mtpa plant (2 times greater than PLS 2 plants combined!who have a MC OF 7 .1 Bn)+ 4 primary lithium sulphate trainswhich would have transport costs reduced by 50%-60%!, also with a battery plant planned for the DRC( 3 times cheaper than the US and Europe) transport will be redundant!

-more funding(now 90% funded)so in a position of financial strength to negotiate more funding from African DFI's to add to our $400 million from CATH(CATL-the largest lithium ion battery maker in the world needing AVZ's lithium to meet their multibillion dollar contracts)...also expecting 2.1 billion overall according to the DRC Industrial Minister Julien Paluku, I quote:

-feasibility study for hydroxide plant...(hint the extra billion funding mentioned above)

-further offtakes to add to our already huge binding offtakes secured with big hitters to supply CATL, the world's largest lithium-ion battery maker

AIMO

Expand

Mining8, would you mind if I post this up on my LinkedIn?