Personally, I have often pondered on the merits of Huayou and Dathomir being the ones to collectively initiate a potential HTO. Collectively they hold a large swathe of stock and would only need financial backing from a number of financiers and offtakes partners to put together a coup.
Hopefully none of our theories come to fruition and AVZ simply sail through the normal steps required to obtain offtakes, project funding and then move to production.
I tend to agree with NF when he said things were going slower than many shareholders would like. And although I too get annoyed when timelines aren’t met, I also understand that there are many aspects that are simply out of NF’s control. This deposit is as we all know, absolutely massive. And with size comes logistical hurdles.
Sure, if we were hitting 20m intercepts of spodumene like so many others out there, then you would expect to be quite accurate on sorting, packing shipping and analysis time lines. But with 200+ intercepts over and over again...we’ll that changes timelines and workload exponentially.
Also, it appears evident that the DRC govt have also been/are quite slow in processing paperwork at thier end. And of course there is a wet season to contend with as well.
All these little obstacles add up to weeks and months in delays. Unfortunately it’s just the nature of this beast.
In saying this, these delays may be a blessing in disguise seeing as the price of Lithium has been pulling back of late, plus demand for EVs is still only on the ground floor globally.
The FOB cost is only going to get better from here, as is the proposed output from 2mpta to 5mpta.
There aren’t too many Lithium deposits left unclaimed globally now, so it’s only a matter of time before something gives on AVZ. Be it a catalyst announcement that renews investor confidence and a return to stock accumulation, or some kind of move from a whale wanting to secure the whole thing as cheap as possible. A certain announcement could trigger both to occur simultaneously.
If we do experience a HTO then it will be a real shame and a huge opportunity lost for mum and dad investors to realise the true value of this deposit.
Either way, it’s clear to all and sundry AVZ is massively undervalued and will at some stage, be a strategic asset to own.
GLTAH
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