Then I am naive SJ. As a long I keep looking for scenarios where Avz could end up not realising full value fir their asset - 50-70 stmt of arrangement or 1.5$ start of mine .
It looks like we’ll get to dfs now with huayou having to support that journey or lose reputation . When we have a dfs (next year) Li will be a big supply focus for the world . We have the biggest and best hard rock that is up for grabs using unsealed roads. The big point when doing the normal comparatives is that you can’t ignore the position manono has Li hard rock resource (no.1 by a huge margin) and you can’t ignore the world demand (pure need) for future generation, lifelong battery grade Li.
These factors (once dfs available) makes manono the target for any miner in the world that can deal in Drc, afford 1billion+ usd acquisition fee, can afford to tarmac 200m usd any roads , can afford 500m hydroxide , 200m power investment . Let’s say 2b+ to control world’s Li supply in face of many global sovereign trillion dollar budgets to combat climate change . Cmon.
It’s not naive . What I would say is that it’s most likely that China will seal this deal once the correct fund level , partioning and partnering is hammered out. But because this scenario is special with few parallels you have already seen that normal Chinese operating models have been challenged ... IMO huayou didn’t want to make that agreement that spelt out that it was not exclusive or binding . .. they HAD to agree to that snd that is the first sign that in this special case it may be naive to believe that existing norms will be played out.
AIMHO , DYOR
AVZ Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
