Cobberoonski I think the bribes from Zijin will definitely pay off. They are probably less than 100 million AUD. In return, they managed to ensure that Manono will not go into production as planned in 2024/25. By then, AVZ's share would likely have been valued at significantly more than 10 billion AUD. Through the bribes, they have gained "friends" among the DRC politicians and created uncertainty among AVZ shareholders. They have already been able to buy some shares off-market from shaky hands. For the rest, they will probably make a takeover offer that values AVZ's stake at not much more than 6 billion AUD. Most AVZ shareholders will gladly accept that. If a white knight comes along with a higher offer, Zijin will also benefit by selling the cheaply acquired shares to the white knight. This offsets the bribes, and the DRC politicians are still indebted to Zijin and will have to offer them something else. So, they are not that dumb after all.
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
