AVZ Discussion 2022
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High Voltage: Robert Friedland says the Congo is 'best place in the world’. AVZ Minerals shareholders probably disagree - Stockhead
AVZ's battles do little to stem investor fears about the risks of operating in Africa, and the grip Chinese interests have on the continent.
High Voltage: Robert Friedland says the Congo is ‘best place in the world’. AVZ Minerals shareholders probably disagree
Mining4 hours ago | Reuben Adams
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- AVZ’ problems compound with cancelation of mining licence decree for Manono lithium project
- Shareholders remain in limbo, with AVZ in suspension since May 2022
- Aussie-based firm Recharge Industries has been named as the preferred bidder for collapsed battery builder Britishvolt
Mining legend Robert Friedland used a recent Ivanhoe Mines call to take a swipe at the ‘African discount’ — commonly applied by analysts on account of the political risks of operating in parts of Africa.
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C$15 billion capped Ivanhoe is now two years into production at the Kamoa-Kakula copper mine in the Democratic Republic of the Congo alongside its JV partner, China’s Zijin.
The largest Tier-1 development in years, the operation is a roughly 400,000tpa copper mine at an industry leading grade of almost 5%.
But not everyone is enjoying the same success in the DRC, ranked third last only ahead of Spain and Zimbabwe on the mining investment attractiveness index released last year by the Fraser Institute in its annual survey of mining companies.
Like AVZ Minerals (ASX:AVZ), which had been plugging away at its world class Manono lithium-tin project in the DRC since 2016 and in 2022, was getting ready to pull the trigger on development.
Manono is objectively a standout lithium project. According to the company, it is:
- the biggest undeveloped deposit in the world
- the second highest grade undeveloped deposit in the world
- in the bottom cost quartile for production globally, and
- in the bottom quartile for greenhouse gas emissions
This is what he said:
“It gets a really bad rap, but I have been operating there since 2004, and had no issues whatsoever,” Ferguson says.
“Yes, there is bureaucracy, but it is Africa, so you deal with it.
“I will say that President Tshisekedi has been cleaning the place up. The business environment is improving. He has been courting a lot of people over in Europe and the US and there are a lot of companies starting to come back into the country.
“BHP are chatting with Robert Friedland, talking about coming back in. Meanwhile, you have the likes of Barrick and AngloGold Ashanti with their $US1.7bn, ~800,000oz Kibali gold mine in the north.
“Friedland’s Ivanhoe Mines has got the massive Kamoa-Kakula copper mine up and running and is now staging it to expand operations. I see it as a country where there is zero risk geologically. You can find big projects there.”
“Zero risk geologically”, maybe.
The first sign of trouble came April last year, when AVZ shares plummeted 57.6% in a matter of weeks from a record $1.33.
The former ASX 200 company was then suspended at 78c in May after it was revealed the aforementioned Zijin Mining had laid claim to a 15% share of the Manono project, which AVZ said it had the right to buy from Congolese State mining company Cominiere.
Separately, one of the JV partners Dathomir, off which AVZ claimed to have bought a 15% stake, reportedly pulled out the deal, something AVZ said it was not able to do.
The upshot is this: Zijin claims AVZ’s stake in Manono, after a planned 24% sale to Chinese battery manufacturer CATH, will come to just 36%, not the 66% AVZ thought it would have.
The project and its stakeholders have been tied up in ongoing arbitration/legal proceedings since then.
Then, another blow. On February 6, AVZ admitted that a mining licence decree announced May last year had been revoked by the DRC Government.
The Australian Financial Review says this announcement to the ASX only came after it sent AVZ the new ministerial decrees, dated January 28, over the weekend.
The embattled company is seeking independent legal advice regarding both Ministerial Decrees dated 28 January 2023, “whilst expediting discussions to clarify the intentions of the competent DRC authorities”.
These hijinks will do little to stem fears from within the investment community about the jurisdictional risk involved in operating in Africa and the grip Chinese business interests have on the continent.
AVZ Minerals share price chart
Aussie firm buys bankrupt battery maker Britishvolt
Aussie-based firm Recharge Industries has been named as the preferred bidder for collapsed battery builder Britishvolt, which entered administration 17 January this year.Britishvolt was building a 30GWh battery ‘Gigaplant’ in Cambois, Northumberland, and had already signed memorandums of understanding [MoU] with five separate OEMs, including Lotus and Aston Martin.
Cumulative customer demand across MoU, JDA and pre-offtake agreements exceeded 8GWh in 2025, Britishvolt said September last year.
Recharge is seperately planning to build a 30GWh battery plant co-located with suppliers – like lithium chemical and cathode/anode production — near Geelong in Victoria.
Fastmarkets NewGen analyst Jordan Roberts says it is perhaps a little surprising Britishvolt has not gone to one of a number of British bidders.
“However, few can have any complaints if it provides the necessary injection to progress into production, vital to securing the future of UK car manufacturing,” he says.
“Recharge’s intentions for the Britishvolt business have not been detailed, but its US ownership and location in Australia, may finally provide the missing pieces of the jigsaw (capital, raw material supply and customers) to get the project off the ground.”
TDITD
Top 20
The BOD showing a great sense of humour, was going to mention that too.
At least our name is still on it .
TDITD
Top 20
I don't think Felix even remembers what his house looks like anymore.
He would sit down and wonder where the seatbelt was on the sofa, look up and see there is no seatbelt sign, ok all good, but he wants a champagne and there is no button........oh shit I'm on land
TDITD
Top 20
Well after the decree Mupande has to accept his 'split tenement and steal' plan with the German and Zijin didn't work out. Don't deprive him of this moment of grieving for the snacks lostThis mornings screen shots from CAMI. Minocom is back. Everything else the same.
Cheers The Fox
I doubt he missed out on snakes variety pack .Well after the decree Mupande has to accept his 'split tenement and steal' plan with the German and Zijin didn't work out. Don't deprive him of this moment of grieving for the snacks lost
$6 million gone missing according to IGF report .
more importantly we await new mining decree from MOM for AVZ and will it be dependant of sorting out 15% purchase from Cominiere.
Remember reading $150 million offer plus script.
The script component is interesting because Cominiere can continue to receive legally financial benefits from shares in the project .
ALL IMO
TheCount
Regular
I'll channel MoneyBags134, Size 8 Regular here and say:-
Are you asking about the "worst" outcome?
Well, it can be between Gazillions and $Zero.
Either we get re-issued the paperwork to dig the stuff up in it's entirety (Gazillions) - or we have to submit applications again (possible Gazillions or $Zero) - or it's issued to someone else ($Zero). Just to name a few possible outcomes.
Recent events have given us much to talk about and so far none of us have predicted how this is going. We all have opinions that will put $$$ back in our portfolios but no-one has pre-empted the depths of corruption and related tactics. Add to that FT is a piss weak President and we continue to live in limbo...
TC.
Scarpa is a ripper poster.........completely wasted on that fucked up HC forum............same goes for SF120 !!
Interesting to note that Scarpas summation of current events is similar to mine and others, FT is a weak prick who should of stepped in alot earlier and cleaned up the corruption as per the IGF report , but did nothing , now passing over the shit to AVZ to sort out....
I have absolutely zero respect for FT now..............a complete wanker of the highest order !!
The other sobering thought coming out of Scarps post , but not mentioned directly, is he is of the opinion that the current percentage status is AVZ 60%, Cominiere 25% - 15% ( Zijin ) Dathomir 15%, in which to work out a " harmony " deal.
Wow, so AVZ have to look into the eye balls of corrupt Cominiere, corrupt Zijin, corrupt Dathomir aka Cunt Cong, PLUS CATH over a round table to sort out a " harmony deal ".................
Will FT have the balls to join that round table ?
Or will he hide ?
Hold on to your hats AVZ longs, next 2 - 3 months will be intriguing to say the least.....
Honestly, you couldnt make this shit up if you tried..........DRC is a fucking joke, filled with scum of the earth and lead by a puppet...........NOT a LION
Good luck AVZ bod, you and your highly paid lawyers are going to need it !!
imo
Wasn't the split 13359 lease JFM's suggestion?Well after the decree Mupande has to accept his 'split tenement and steal' plan with the German and Zijin didn't work out. Don't deprive him of this moment of grieving for the snacks lost
Why would he suddenly, after roadblocking the surface rights calculations for 10 months, co-operate in re-establishing the 13359 lease as one unit?
Did the MoM's power over JFM suddenly change?
Can't see that happening quick smart, without JFM getting the boot and that has not happened.
JFM and cohorts will want to drag this out as long as possible, hoping that the result will be that Felix will remove 13359 from AVZ.
Simultaneously feeding the press crap so AVZ becomes one bad taste in Felix's mouth.
See Tommy Twatter's efforts.
TDITD
Top 20
Yes the split imo was between Mupande, the german and Zijin.
The order probably came down from Felix the pussy cat to sort out Manono and through MOM she rescinded the ML decree. However yes it remains to be seen if Mupande will adhere as it looks like he very much had other plans.
The scene over there now very much seems something has changed and the DRC are now all of a sudden in a hurry to build Manono, problem is they have conveniently forgotten who has developed it.
As usual a great post by Scarpa . Always appreciate his thoughts as I'm sure many of us here do . What he didn't take into account however was Cominiere wanting their 60% back and it's possible relationship with MoM pulling our Decree . It's the Multi Billion $$ question we await the answer for .Scarpa is a ripper poster.........completely wasted on that fucked up HC forum............same goes for SF120 !!
Interesting to note that Scarpas summation of current events is similar to mine and others, FT is a weak prick who should of stepped in alot earlier and cleaned up the corruption as per the IGF report , but did nothing , now passing over the shit to AVZ to sort out....
I have absolutely zero respect for FT now..............a complete wanker of the highest order !!
View attachment 28989
The other sobering thought coming out of Scarps post , but not mentioned directly, is he is of the opinion that the current percentage status is AVZ 60%, Cominiere 25% - 15% ( Zijin ) Dathomir 15%, in which to work out a " harmony " deal.
Wow, so AVZ have to look into the eye balls of corrupt Cominiere, corrupt Zijin, AND corrupt Dathomir aka Cunt Cong over a round table to sort out a " harmony deal ".................
View attachment 28990
View attachment 28991
Will FT have the balls to join that round table ?
Or will he hide ?
View attachment 28993
Hold on to your hats AVZ longs, next 2 - 3 months will be intriguing to say the least.....
View attachment 28994
Honestly, you couldnt make this shit up if you tried..........DRC is a fucking joke, filled with scum of the earth and lead by a puppet...........NOT a LION
View attachment 28995
imo
Cominière wanting AVZ's 60% back has Cong/Eckhof all written over it.
I say when AVZ sorts this mess out they should go after Tommy and make him prove under oath what he says it true with facts or sue him for every cent he has , that would put more money in the bank
TDITD
Top 20
If we can get Felix or whoever to admit they have been quite the CUNTS in this whole deal and hey nothing will be sorted while rampant crime is happening, take note of the IGF report !!!! We have ICC coming up btw too, we are happy to win those cases and have our lawyer fees paid for!!Scarpa is a ripper poster.........completely wasted on that fucked up HC forum............same goes for SF120 !!
Interesting to note that Scarpas summation of current events is similar to mine and others, FT is a weak prick who should of stepped in alot earlier and cleaned up the corruption as per the IGF report , but did nothing , now passing over the shit to AVZ to sort out....
I have absolutely zero respect for FT now..............a complete wanker of the highest order !!
View attachment 28989
The other sobering thought coming out of Scarps post , but not mentioned directly, is he is of the opinion that the current percentage status is AVZ 60%, Cominiere 25% - 15% ( Zijin ) Dathomir 15%, in which to work out a " harmony " deal.
Wow, so AVZ have to look into the eye balls of corrupt Cominiere, corrupt Zijin, corrupt Dathomir aka Cunt Cong, PLUS CATH over a round table to sort out a " harmony deal ".................
View attachment 28990
View attachment 28991
Will FT have the balls to join that round table ?
Or will he hide ?
View attachment 28993
Hold on to your hats AVZ longs, next 2 - 3 months will be intriguing to say the least.....
View attachment 28994
Honestly, you couldnt make this shit up if you tried..........DRC is a fucking joke, filled with scum of the earth and lead by a puppet...........NOT a LION
View attachment 28995
Good luck AVZ bod, you and your highly paid lawyers are going to need it !!
imo
Zijin own nothing it was illegal and we also didn't get our ROFR, we happy to take it up right now. So they cant be at the table, no negotiation on that, if you don't like it we will goto ICC.
Cong, hahahahahah, hold on Felix, hahahahahahahah, oh fuck thats a classic. We paid them deals done, I'll tell you what for the good of the people of Manono and in good faith to move past this so we can finally start mining we will offer $10M, they take it or we go to ICC and there ruling can hold.
We are happy to meet with Cominiere and negotiate to purchase their 15% in good faith for the project and people of manono, they did not respect our ROFR so we would ask that they only talk to us or CATH or DRC Govt about purchasing the 15% as it seems too many people involved in a company creates long-term problems.
Reasonable, or we go ICC an every fucker waits - shit
Unless a real TO offer comes in which we know the Chinese wont do.
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