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18.5¢ avz minerals limited

Um........ Mineral Resources Limited doesn’t have JORC category...

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06/03/19

16:41

Post #: 37674645
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Originally posted by Starmanwin ↑

Surely there can't be too much more downside risk at these levels?

I think your points regarding MIN's Wodgina project are very relevant to the assessment. The big players are prepared to cough up big bucks for tier 1 hard rock lithium deposits. And there aren't too many of them available.

Albemarle recently acquired a 50% interest in Wodgina for USD 1.15B or roughly AUD 1.6B.

The current indicated resource (no measured resource) for Wodgina is 197 Mt at 1.17% for 2.3 Mt of contained Li2O. Total resource (including inferred) is 259 Mt at 1.17% for 3.03 Mt of contained Li2O. Cash operating cost on the mine is close enough to AUD 400 per tonne.

Large multinational companies are not scared to operate in the DRC - Freeport, Ivanhoe and Glencore are all active in the country. As are Chinese companies in increasing numbers.

Infrastructure issues will be overcome. Demand for lithium and the quality and size of AVZ's resource will see to that.

Roche Dure has a measured and indicated resource of almost 190 Mt at 1.66% (avg) for 3.16 Mt of contained Li2O. Total resource (including inferred) is 400 Mt at 1.66% for 6.64 Mt of contained Li2O. The SS has cash operating cost on the mine also at around AUD 400 per tonne. Tin and tantalum credits will likely improve this significantly once the DFS is released.

So comparing Roche Dure to Wodgina:
- deposit is significantly larger
- measured and indicated resource is slightly smaller, however almost half is in the measured category
- grade is significantly better
- contained Li2O is significantly larger
- cash operating cost looks similar at current levels, however tin and tantalum credits will likely significantly improve Roche Dure's numbers
- MIN sold a 50% stake in Wodgina for AUD 1.6B!!!!!

And then we have Carriere de l'Este coming along that is likely to trump Roche Dure for size of resource, grade, contained Li2O and operating costs!

Which of the large lithium players wouldn't want our 60% stake in these deposits? I'm also trying to understand how Manono could possibly be worth less than Wodgina.

I honestly think that if it all gets too hard, AVZ could put up the for sale sign today and walk away with over $1 per share in cash from the sale. If they wanted to, they could probably also sell 50% of it and retain a free carry of the remaining 10%.

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Um........ Mineral Resources Limited doesn’t have JORC category measured level of confidence in its resources and this is after a dot matrix drill campaign.

So the $ALB $MIN deal is all about skill sets they bring to it………….in a way this has a value too, that AVZ cannot factor as yet.

AVZ however, does have a MOU with Tinci that has processing experience which could be useful.

Vertical integration with Manono’s homogenously predictable qualities and grade looks to simplify processing mechanically speaking.

The MET tests will be fascinating.

Anyone noticed AVZ has publicly disclosed more about its MET testing than any other ASX lithium stock?

NOTHING to HIDE HERE

IMO & DYOR

AVZ Price at posting: 4.6¢ Sentiment: Buy Disclosure: Held
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11 Great analysis

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