AVZ 0.00% 18.5¢ avz minerals limited

Gee, I agree with you in part and you are still not happy. Maybe...

  1. 6,289 Posts.
    lightbulb Created with Sketch. 2939
    Gee, I agree with you in part and you are still not happy. Maybe you need to drink a few VBs and chill. Can’t please everyone I guess LOL.

    As to your example, the Karara iron ore deposit is a magnetite iron ore deposit which has much higher cost structures than traditional hematite deposits, noting magnetite also needs a good energy source as well. Not a good example, as Karara is not a large scale deposit like your typical BHPB hematite iron ore deposits, and noting the Chinese were also involved in the failed Oakajee project as well which in totality they were IMO seeking to leverage of future production to get a benefit from Rio aor BHPB in terms of lower iron ore prices - the ‘reduce your price or we will buy elsewhere from our own mines’ strategy which failed in relation to Karara. Problem is magnetite is not a play for hematite so not surprised. So this is not a good example when then seeking to compare to a large scale potential lithium deposit. Karara annual output right now would be less than 1% of what Rio and BHPB combined produce IMO so not much leverage if trying to control a market through your own supply.

    Where I agree with you is that AVZ need to broaden their mindset beyond dealing with the Chinese because only focussing on the Chinese is a recipe for low SP, delays in development and been played by the Chinese (hence the need for the contest able market concept - Chinese if not interested then we will sell to the Americans etc etc etc approach to draw them out).

    All IMO
 
watchlist Created with Sketch. Add AVZ (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.