BLM fee for each 20-acre claim is US$200 annually. AZL has 331 of them, so do the math. They also lease the same land for cattle grazing. The BLM in Arizona charges $1.35 per animal unit month (AUM) for cattle grazing on public lands. An AUM is the amount of forage needed to sustain one cow and calf, one horse, or five sheep/goats for a month. The Hualapai hold some of the grazing permits.
AZL hasn't applied to do even exploratory drilling on many of the 20-acre claims, which might lead you to believe that there's probably not much lithium there, but it's still worth the $200 annual maintenance fee (payable in September) so they can convince some people that what they found on 4% of the claims could be found on the other 96%.
We don't really know how much AZL is paying the Kaiser family to rent their Tempe building. We just know the asking price. It might have been negotiated down from there. The assessed value for taxes was only $2.6 million in 2022. That number is usually about 83% of actual value, so figure it was worth US $3 million. If the net rent for the first year was US $492,000 annually, that was a handsome 16% return. The valuation is now up to US $4.6 million, or $5.5 million actual. About a 9% return for the owners.
AZL Price at posting:
0.5¢ Sentiment: Sell Disclosure: Not Held
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