Too me, in this order:
1. Renowned and respected Chairman who can instill market confidence back into AVZ (sentiment a big key). Clearly sentiment has become cactus here the last year or so. New Chairman required next month or so.
2. A viable transport route completed and or will be known to be completed by the Chinese/others in the DRC before AVZ go to production. In other words one that AVZ can leverage of in its transport studies and DFS. DFS required by end September 2019 quarter.
3. Definitive signs that AVZ can get into production by 2021/22. And underpinning this would be Offtake Agreements with a definitive supply date to buyer, and that will also instill confidence because it confirms the 'production date', and provides the basis for finance options (including equity for Offtake Agreements).
Everyone knows the resource is fantastic so further drilling results won't have an impact on SP - as well as people would recognise AVZ will have lower minesite costs compared to others so it is a question of transport and timing to market IMO as I discussed the other day (i.e. transport is a post minesite cost for those scratching their head). Tax holidays and some of the other things in this thread are also a nice to have, but the three points above IMO is what will move the market here IMO and change the overall sentiment to AVZ.
My personal view is the market is pricing AVZ's SP as if it will not get into production by 2025, and therefore it is up to AVZ to change that sentiment, and before anyone asks why I am suggesting this, which I have discussed in the past, just look at the SP. The SP is reflective of one where the market does not believe AVZ will be in production by 2021/22 IMO, and IMOit is essentially about a transport option here and timing to market. I explained this view in this post and believe if AVZ can get its act together it can be in production by 2021/22 and certainly be in production by 2022/23 - Post #:
37647762.
All IMO
