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

AVZ

0.00%

78.0¢ avz minerals limited

I like Chinese offtake more. Keep the northern half then avz...

First 126 Last

Share
Profile

Follow
Emma1234

622 Posts.

41

27/09/18

13:42

Post #: 35882093
Share

Originally posted by traz ↑

Originally posted by johnxj
nice interview with Nigel by GBR, its posted on AVZ twitter
https://www.gbreports.com/interview/nigel-ferguson

Love these bits especially:

Are you looking at the potential for offtake agreements?

So far, we have stayed in full ownership, but to get the project into production we have to consider this option. One pathway is a traditional debt/equity model, and the second is to take onboard a partner. We are in discussions with several Chinese groups about taking an investment in the company. We are talking about a premium to share price, and a 20% offtake would translate into between US$30 million and US$70 million into the company. The third and final option would be to sell half of the asset. For example, we could sell the northern half of the project for US$250m-US$300m and funnel the profit back into the remaining side. If choosing the latter, we could be debt-free – no dilution.

Which option is most attractive to you at the moment?

At the moment, our primary option is a Chinese offtake, the reason being the possibility of a full buy-out in the future. We have a few leading prospects; one that could be considered a multinational engineering firm, hence capable of providing us with the earth-moving equipment and construction assistance, and another is a multinational mining company with a number of current projects in the DRC. The third alternative is an electronics firm without any mining experience but interested in moving into lithium. The company wishes to build their upstream capacity and is debating the construction of a hydroxide plant. This would be an excellent option for us if we aspire to it.
...
Can you share the expected timeframe for starting production for the Manono project and targets for the upcoming years?

We are planning to have Manono up and running by 2020. The money from the cash flow should be sufficient to fund the expansion within a two-year period, and after three years, there is the possibility of a self-funded hydroxide plant.

Expand

I like Chinese offtake more. Keep the northern half then avz control the lithium market. If they sell the northern half, potential buyer of avz lithium may buy from that buyer. Plus $250 million is not really a good offer to me. Looking forward to see ss.
I like the idea of a self fund hydroxide plant too. Hehehe ...

AVZ Price at posting: 9.6¢ Sentiment: None Disclosure: Not Held
5 Upvote

0 Great analysis

Reply

Top Stories

FEG

China's Xingye snags 19.99% stake in Far East Gold, eyeing latter's Indonesian gold play

SRN

Copper and zinc zone prove exciting news for Surefire close to WA's Yidby

ADH

Adairs MD and CEO steps down after 17 years in company management

DEL

Delorean unlocks $30M through Tanarra finance facility for bioenergy projects

Is the ASX getting its groove back? Here's 5 IPOs in September to watch