Morning all, Received a couple of requests to provide an update...

Morning all,

Received a couple of requests to provide an update on AVZ's resources and reserves valuation vs hard rock peers, so here is the latest snapshot.



Key points to the above (all IMO):

*Whilst the SP is rapidly heading in the right direction, AVZ is still trading at a heavy discount vs its spodumene development peers.
EV/t Li20 resources = A$579 vs A$1472 (development peer average), representing a mammoth A$893/t or 61% discount.
Even if one includes a 15% discount for country risk, AVZ is still trading at a 46% discount, so there's plenty of room for the SP to run before AVZ reaches fair valuation from a EV/t Li20 resources perspective.

*In order for AVZ to match LTR's current EV/t Li20 reserves valuation of US$2464, AVZ's SP would need to rise to A$1.665 (75% ownership) or A$1.235 (assuming 51% ownership post CATH deal).

*Pilbara Minerals' Market Cap is now in excess of A$10 billion, and has a EV/t Li20 reserves valuation of US$3849, ~200% ($2556) higher than AVZ's current EV/t Li20 reserves valuation of US$1293.

So again, plenty of room for AVZ's SP to run in the days, weeks and months ahead IMO.

GLTA and looking forward to the 'imminent' news ahead. FTO soon me thinks.

Cheers
Elpha

p.s. According to Mysteel Group, 'the price of battery-grade lithium carbonate rose by RMB 10,000 per ton today to an average price of RMB 290,000 per ton, with the highest price quoted topping RMB 300,000 per ton.'  That's the equivalent of over US$47,000/t.

For reference, AVZ's 2020 DFS used Roskill's then US$14,862 CIF technical grade Lithium Carbonate price average (from 2020-2040) to determine a LT contract price of ~US$7,400 for Primary Lithium Sulphate (PLS).

Therefore, in addition to SC6, revenue assumptions for PLS in the upcoming 2022 BFS should be significantly higher than those revenue assumptions quoted in the April 2020 DFS.

Finally, and as further quoted in the below article / link, our partners at CATL had 11.45 percent GWh installed in China in November, representing a massive 55 percent market share. Need more Lithium CATH & Mr. Pei?

https://cnevpost.com/2022/01/04/catl-sets-up-mining-company-after-byd/amp/