So we are just waiting on that piece of paper from DRC SCJ to give the market peace of mind. I'm actually amazed that the SP has been so tame given that in the 1% chance IMO it is not a favourable decision, it will only result in compensation by the State as has been emphatically spelt out by management. Now we see the decision by management to take on Klaus as MD has been a master stroke indeed!
There is no doubt in my mind that this is a tier 1 resource as correctly proclaimed by
@greenmetals and Manono is known to be the crown jewel of the DRC. The last tantalising announcement by management [down-played IMO] demonstrates that this may well be a 1BT+ resource as mineralisation appears to be homogenous and its base from drilling still not found yet. Insane! I can't wait for the pundits to start crunching numbers once mineralogy/drill results filter out. I suspect they will not be comprehensible nor tangible to us mortals due to the enormity, so predicting a SP upper limit will be anyone's guess. I'm also not sure we will get the initial euphoria that PLS had but at a potential 10 fold size increase over the Pilbara, maybe 6 fold over Greenbushes, why the heck not! I am certainly predicting a minimum of 20-30c under 12 months.
One of the biggest factors for me selling my lithium stocks in Dec/Jan to concentrate funds here was due to the fact that the enormous supply potential will have probable repercussions on the off-take security/possibilities of rival lithium companies. We are predicted to have a shortfall in lithium H2 17 but oversupply/enough supply until either 2020/2023 [when EVs are mainstream] so AVZ will be ripe picking towards the end of 17/early 18 IMO causing some strategic supply conundrums for Chinese battery manufacturers. I suspect the Chinese will be also be fearful of the Europeans getting involved as it could easily supply a multitude of potential rival battery manufacturers for years.
Klaus' track record is to prove-up and sell and I heard that he is floating around Beijing at the moment.
As I said earlier, I suspect AVZ have been down-playing the potential at Manono so as to not cause unnecessary attention to the DRC court proceedings.
However, the paperwork is due any day and then it's game on!
Let the bidding war for our asset begin!
GLTAHs!
