What matters is how secretive and sly Chinese operators can be.
Take Pilbara for example............ it has a heavy heart of burden. It has no known floor for its pricing mechanism, a mechanism modelled in 2016 based on conservative consensus modelling and is linked contractually for how many years with so called battery grade lithium carbonate domestic China market?
Point being, the Chinese took to the pricing quickly and Ken was surprised by it............ Ganfeng and GL won. IMO, I believe shareholders can’t see it clearly, whilst cash continues to flow.... but it stunts Pilbara.
And who decides what’s graded as battery grade after so xx many processing hours? Posco might be fairer indeed but it shows how smart the Chinese are.
AVZ is not locked in...... Nigel will not kowtow. I am waiting for the board to fill out to make that happen.
20cps, might look good, that’s what I was inferring last post but this market is not short term.
When it hit 20cps, I recall hearing 25cps and even 30cps as a target......... that was after HuaYou entry at 7cps.
I don’t see any reason in a bullish market (Blackrock today in Bloomberg TV) why AVZ has to prostrate itself to Beijing at 12cps or even 20cps.
Ride it back up I say.
DRC sentiment is also growing stronger.
All IMO & DYOR
AVZ Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
