CATL makes its entry via Lithium Plus Pty Ltd?, page-155

AVZ has done surprisingly well post cap raise IMO. Could get cheaper this week with new tranche released but there’s been no shortage of buyers stepping up this past week soaking up the short term Cap raise profit takers. Also supports the comment in the Feb27 announcement that there are local and global instos onboard as well as the Sophs. 

I will be happy to get more this week. We also don’t know when a possible perfect storm style re-valuationpump may ensue. Consensus opinion that AVZ is severly oversold this past 12months.

 

5 day chart shows the strength of buy support rejecting the low of 4.2c on 2 occasions. Many thought it would have went lower post CR. Looks like a lot of distribution and accumulation buying happening and seller exhaustion. Profit takers becoming scarce, ended week 2% up. 

Sorted cash needs funded until FID and by doing so surprised the market.

When this EV lithium market hots up again watch the money inflows again.

AVZ remains a compelling choice. Because of market leading size and quality. Buyers continue to step up and theChinese have shown they are still interested. 

Now the big difference to last year is a marquee resource all but proven. “World's largest at high grade”.At surface, low strip, high grade, and scaleable. The asset resource potential simplycan’t be ignore.

A peer comparison of other large ASX resource plays. Upside exists in both resource and valuation from 400MT Jorc proven up tothe 1,200MT conceptual target. The second large Peg Carrie 5.5kms long with early drills showing 2%+ grade looks a future Greenbushes style deposit in the making.

 

As transport links continue to improve over time the potential for this project to become areality should become more likely.
They many be behind closed doors blueprints we don't yet know about.

Watch for thesector reversal. Green shoots showing. Mention of this stat and article wasmade in the Feb 27 AVZ announcement.

“In January, sales of electric cars in Chinaskyrocketed 188 per cent, and sales of hybrids jumped 53 per cent.”

https://www.copyright link/business/manufacturing/car-makers-caught-in-the-crosshairs-of-regulatory-and-trade-wars-20190221-h1bkkj

Think about the Lithium run of 2015 – 2017 and 5 years on how many more thousands of sector followersand instos will pour money into the next Lithium bull run. Producers, potential producers will benefit most when the high demand low supply situation kicks in again. Investing 101. Buy low sell high. Buy in gloom sell in boom.