AVZ Discussion 2022

[Hudnut]

How I'm reading this at first glance:

Regarding ownership dispute.

- CATL think we might win this, or are at least hedging their bets
- We retain the ability to finance mining, which is a pre-requisite for the mining license (very important)
- $259.25M / AVZ Shares on issue * 30.5% = 24c per share?
- We can use funding for operational costs
- We haven't paid arbitration fees yet
- We have funding until End of 2027
- CATL can't onsell their stake to scumbags

Other bits and pieces:
- We need to provide collateral to get the remaining $10M
- Their is no escrow or break fee any more
- Capitalisation of interest

Interesting to know what the Chinese are thinking with one Chinese company financing legal fees against another's interests.
Unless they are leaving options open to switch horses during the race and leave the DRC high and dry.

 

[Aeolian]

How I'm reading this at first glance:

Regarding ownership dispute.

- CATL think we might win this, or are at least hedging their bets
- We retain the ability to finance mining, which is a pre-requisite for the mining license (very important)
- $259.25M / AVZ Shares on issue * 30.5% = 24c per share?
- We can use funding for operational costs
- We haven't paid arbitration fees yet
- We have funding until End of 2027
- CATL can't onsell their stake to scumbags

Other bits and pieces:
- We need to provide collateral to get the remaining $10M
- Their is no escrow or break fee any more
- Capitalisation of interest

Interesting to know what the Chinese are thinking with one Chinese company financing legal fees against another's interests.
Unless they are leaving options open to switch horses during the race and leave the DRC high and dry.

$260m/4b shares is 6.5cps

 

[Aeolian]

Its USD so 420m AUD

Yep, so AUD 10.5cps

 

[Deepp]

Based on shares registered ; they’ve acquired GLH so not sure how issued shares work in that regard as yet . But current shares issued is circa 3.6billion ; based on 30.5% that’s circa 1.1B shares for 420m AUD that’s around 38c roughly

For your 6.5cps , you initially divided 260m USA ‘value’ by a quantity of 4 billion shares and didn’t use fhe 30.5% factor . AVZ is currently valued at $2.77b at the suspended price.

Don't we need FIRB approval for this new agreement?

 

[JNRB]

Too me on the whole seems positive.

The big question is not how does this value the company, it's how does the valuation compare to the initial CATH deal.
(rounded figures, i'm lazy)
First deal was 24% for $240mil. ~1 Bil MC
This deal 30% for $280mil. ~0.86 Bil MC

So despite AVZ's situation, and aaaall the shit we've been through, and still have to go through...
it seems CATH still willing to value the company similarly to their previous arrangement.

Sure, slightly less, circa 15%, but they' thrown in some other sweeteners to help us power through to the end of this shit show. That's a very positive sign to me. Don't use this price to try and estimate what our MC should be. Just as useless as trying to do the same thing when they made the first deal. OF COURSE they are getting a bargain! Because of what else they can bring to the table. They get a good deal but it increases the value overall because it increases the potential of what we can achieve.

But on the whole:
This is the best sign we've received in years that we are nearing the end of this thing, we're gonna survive it, get what we deserve!

Some more random thoughts.
This is still a great deal for the Chinese. They will get all the Lithium they need.

• They will get the lithium cheap, but this thing is so fk'ing huge i'm sure it's still gonna work out well for us holders.
• USA is fkd now. They did fk all to help us out so too bad for them. China will continue to control the worlds lithium supply. Maybe CATH caught wind of US or other companies sniffing around AVZ and so decided to just make a move and lock things in?
• Chinese companies often compete against each other. Time for CATH to squash Zijin.
• CATH can apply pressure in ways that AVZ can't. It's good to have a clear commitment from them that we're in this thing together and they are fully throwing their weight behind pushing forwards WITH AVZ.
• I'm not clear how the 'discount' works...

 

[Mr_Tones83]

Don't we need FIRB approval for this new agreement?

No, GLH is incorporated in Singapore

 

[JNRB]

Don't we need FIRB approval for this new agreement?

Yes because the Australian government has been SOOO keen to make sure this project stays in Australian hands....

....but yeah maybe.

 

[Deepp]

Too me on the whole seems positive.

The big question is not how does this value the company, it's how does the valuation compare to the initial CATH deal.
(rounded figures, i'm lazy)
First deal was 24% for $240mil. ~1 Bil MC
This deal 30% for $280mil. ~0.86 Bil MC

So despite AVZ's situation, and aaaall the shit we've been through, and still have to go through...
it seems CATH still willing to value the company similarly to their previous arrangement.

Sure, slightly less, circa 15%, but they' thrown in some other sweeteners to help us power through to the end of this shit show. That's a very positive sign to me. Don't use this price to try and estimate what our MC should be. Just as useless as trying to do the same thing when they made the first deal. OF COURSE they are getting a bargain! Because of what else they can bring to the table. They get a good deal but it increases the value overall because it increases the potential of what we can achieve.

But on the whole:
This is the best sign we've received in years that we are nearing the end of this thing, we're gonna survive it, get what we deserve!

Some more random thoughts.
This is still a great deal for the Chinese. They will get all the Lithium they need.

• They will get the lithium cheap, but this thing is so fk'ing huge i'm sure it's still gonna work out well for us holders.
• USA is fkd now. They did fk all to help us out so too bad for them. China will continue to control the worlds lithium supply. Maybe CATH caught wind of US or other companies sniffing around AVZ and so decided to just make a move and lock things in?
• Chinese companies often compete against each other. Time for CATH to squash Zijin.
• CATH can apply pressure in ways that AVZ can't. It's good to have a clear commitment from them that we're in this thing together and they are fully throwing their weight behind pushing forwards WITH AVZ.
• I'm not clear how the 'discount' works..

"First deal was 24% for $240mil. ~1 Bil MC
This deal 30% for $280mil. ~0.86 Bil MC"

Previous deal was 24% of Dathcom.
This is 30.5% of GLH (currently 75% of Dathcom)

So roughly similar valuation looks like.

 

[PhatCatz]

Do we still have access to Locke if required? Will this 30 per cent mean there is a higher chance AVZ won’t have controlling interest in the project?

I don’t trust the Chinese at all. This isn’t some good will gesture.

 

[JNRB]

"First deal was 24% for $240mil. ~1 Bil MC
This deal 30% for $280mil. ~0.86 Bil MC"

Previous deal was 24% of Dathcom.
This is 30.5% of GLH (currently 75% of Dathcom)

So roughly similar valuation looks like.

I was worried I'd made a mistake somewhere in my roughing it out, and very glad the correction aparently works in our favour

Curious why the change though.

 

[Bray]

Aslong as we get out with our initial deposit of $ or more, who gives a flying F. Hope CATH smashes zinjin

 

[Retrobyte]

Brown paper bags at 10 paces - Mr Pei v Zijin

 

[j.l]

Brown paper bags at 10 paces - Mr Pei v Zijin

Surely not?
Zijin get the north, CATH the south.

 

[tolate]

Restructured Transaction Implementation Agreement and Joint Venture including US$20 Million Pre-Completion Facility
Now what do you say about the CHINESE....LMAO

TIA on LOCKE DEAL out...LMAO

AVZ Minerals Limited (AVZ) is pleased to announce that it has entered into a precompletion funding agreement (Pre-Completion Funding Agreement), a revised transaction implementation agreement (TIA) and a relationship deed with Suzhou CATH Energy Technologies (CATH) (together the Restructured JV Arrangement).1

 

[PhatCatz]

Chinese don’t think the way we western do. If going by what’s been published this “deal” will allow legal access on the tenement. Once that occurs they will be impossible to remove especially with this capital expenditure funding agreement and grey repayment clause. They will do a Mali and LLL and squeeze AVZ for the whole company in collaboration with DRC government. Once the foots in the door they will do everything to get it all. This just accelerates that aggressive and illegal takeover.

 

[tolate]

Surely not?
Zijin get the north, CATH the south.

Yes i think that is the way it will go...imo
Locke deal out the door CHINESE DEAL ON

BRING IT ON

 

[Goldenboy]

Chinese don’t think the way we western do. If going by what’s been published this “deal” will allow legal access on the tenement. Once that occurs they will be impossible to remove especially with this capital expenditure funding agreement and grey repayment clause. They will do a Mali and LLL and squeeze AVZ for the whole company in collaboration with DRC government. Once the foots in the door they will do everything to get it all. This just accelerates that aggressive and illegal takeover.

Is that you Hoots ????

 

[BRICK]

Dirty old Hooter

 

[JNRB]

Surely not?
Zijin get the north, CATH the south.

Zijin and CATH have very different motivations.

Zijin digs shit up and sells it.
CATH buys shit that's been dug up and sells batteries.

Zijin wants to make money selling rocks.
CATH wants a secure supply of rocks so they can make money selling batteries.

Zijin needs CATH, but CATH doesn't need Zijin. Zijin is just a middle-man, and it is entirely in CATH's interest to cut them out completely. CATH wants the whole shebang and aparently is willing to pay for it. There is 0 advantage for them sharing with Zijin.

 

[BRICK]

Giddiup and letsfuckengo