Transaction Valuation Comparisons for AVZ, page-7

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Rechnerhand

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22/11/18

20:42

Post #: 36609212
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Originally posted by Obe wan: ↑

Huge result for the sector!

A rising tide floats all ships, even ships made out of hard rock.

AVZ outclasses Wodgina on many key attributes, and with more measured resources on the way estimated to elevate tonneage 350Mt+ easily, and 5-10mtpa scoping studies on the way--who is asking for that to be dialled in?? Tinci, Greenpower and BNB?

Been very busy of late but lets have a quick look....

Albemarle & Mineral Resources:

*Albemarle proposed purchase of 50% of Mineral Resource’s Wodgina lithium project for USD 1,150 million.
https://finance.yahoo.com/news/ lithium-king-bets-big-demand-161736392.html

*The Wodgina lithium project is also in development and currently not in production.

* The Wodgina lithium project has a resource of 259.2 million tonnes, the transaction for 50% of the resource of 129.2 million tonnes has been completed on a USD 8.90/tonne basis.

View attachment 1371291

*AVZ using a USD 8.90/t valuation basis implies a value for AVZ’s 60% share of the Manono lithium project at USD 1,388 million, or A$1.03/ share of AVZ. https://finance.yahoo.com/news/lithium-king-bets-big-demand-161736392.html

* Using the potential increase in AVZ’s JORC resource of say, for a figure; 400 million tonnes...this gives an implied value of USD 2,136 million for AVZ’s 60% share of the Manono lithium project, or A$1.58/share of AVZ.

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Apart from this huge rating for MIN due to the ALB deal, in my opinion, we should not just value MIN for their resource, but for what ALB wants to see in it .... a hydroxide plant.

AVZ Price at posting: 7.9¢ Sentiment: Buy Disclosure: Held
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Transaction Valuation Comparisons for AVZ, page-7

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