Australia's largest stock trading and investment forum Australia's #1 stock forum

AVZ

0.00%

78.0¢ avz minerals limited

Hi,it is imperative that DRC materially, and in good faith,...

First 73734 Last

Share
Profile

Follow
nsethi1210

27 Posts.

303

05/10/22

19:08

Post #: 64048303
Share

Originally posted by Cunial: ↑

Without a doubt AVZ would have a target on its back. Depending on the suitor I think this could come at any time, though more likely before cath deal is finalised.

As they discuss in this series. In my opinion the most likely option is a large mining company. As the hosts suggested the likes of RIO might be looking for a large deposit with a very long life. As compared to the OEMs who don't want to get into mining (but they may have to). I think OEMs will be looking for smaller deposits in safer jurisdictions (unless Chinese). they won't really want a deposit the size of Manono
Also, there would be a whole bunch of players in the supply chain that would want Manono. E.g. Catl.

For Manono to be appealing for a US or European based suitor I believe it's only likely if this CATL transaction doesn't go ahead. Due to the inflation reduction act, a certain percentage of the production can be Chinese owned but it has to be a minority. Certainly not let's say 50% Chinese owned hydroxide production, if that's how it ends up going (hypotheticaly speaking). 24% Chinese owned of PLS production seems more reasonable for a US customer. Then there's considerations around a trade agreement between drc and us. All in all it adds to the complexity of a transaction. Whereas I think a Chinese purchaser or larger mining company selling into Chinese partners seems more likely.

A final point to add here is as also discussed in the video I think Chinese supply is under attack by the above concept (inflation reduction act) focusing on shutting down chinese based supply chains. Chinese are most at risk with supply issues. They will look to secure supply in riskier jurisdictions imo.

in summary I think the inflation reduction act will end up positive for an avz transaction if the Catl transaction doesn't go ahead. If it does go ahead then the reduction act may end up being a little bit negative.

all purely speculative and imo

Expand

Hi,
it is imperative that DRC materially, and in good faith, involves the Chinese in the Monano Lithium project Otherwise Chinese infrastructure investments in the country and in the continent is in double-standard jeopardy.

AVZ has 66% of the product to play with for the benefit of DRC AND the rest of the world.

just my two cents....

AVZ Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
11 Upvote

0 Great analysis

Reply

Top Stories

AUG

Augustus sees imperial share rise on high-grade Cu and gold results at Ti-Tree

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

TX3

Canadian fieldwork yields multiple pegmatites for Trinex

RNU

Renascor wins a funding boost given it wants to produce a critical mineral – but $5M award pales in comparison to some

TLX

Telix jumps 11.6% as US government indicates proposed medicare changes won't affect prostate cancer drug

There are more pages in this discussion • 9,003 more messages in this thread...

First 73734 Last

Add AVZ (ASX) to my watchlist

Hi,it is imperative that DRC materially, and in good faith,...

Top Stories

Augustus sees imperial share rise on high-grade Cu and gold results at Ti-Tree

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Canadian fieldwork yields multiple pegmatites for Trinex

Renascor wins a funding boost given it wants to produce a critical mineral – but $5M award pales in comparison to some

Telix jumps 11.6% as US government indicates proposed medicare changes won't affect prostate cancer drug

Featured News