@ericson in the other thread you asked me this question - "
Will Avz mine this themselves scarps ? IYO "
I have decided to answer the question in this thread as I prefer the other thread to deal with demand/supply issues as new data comes in. To be honest I gave an opinion in a way in this below:
Post #:
37696145
The more important question is can AVZ take this to mining alone. My view is they can, but given funding requirements I suspect they will need to enter into 'equity' for Offtake Agreements. The way they enter into these is important because they can still remain the operator of the project and have effective control, or ineffect become a silent JV partner in the project. If you look at PLS they didn't give away control of the company to its Offtake partners despite many of those giving equity for Offtake Agreements and that is what I would be hping AVZ does.
Do I think the current BOD have the experience and knowledge to take this to mining and/or are able to use experience to not get played by the Chinese. I have my doubts, so the new Chairman appointment is a very very very important decision for AVZ IMO on what road they end up taking.
Obviously given where the SP is, there could be a takeover offer but it will boil down to whether those with a blocking stake in the company in the now decide to sell, because IMO the Chinese like full control of companies (and that means delisting from the ASX) rather than having some control but remaining listed on the ASX. The new Chairman must open up discussions with Chinese and non-Chinese players for equity for Offtake Agreements so also wrest control of the resource development to under its control (rather than IMO how they are currently been played by Chinese players). And that IMO is part of the reason where the SP is at - lack of direction and strategy.
We know the resource is excellent, so it is about transport options and bringing the product to market, assuming the market itself has sufficient demand to allow AVZ's entry to market (hence the other thread).
A non-answer of sorts to you I guess but that is my opinion on the question. Wait and see is what I am saying, as haven't formed an opinion.
All IMO
