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.
AVZ Discussion 2022
- Thread starter GazDix
- Start date
Curious why the change though.
Surely not?
Zijin get the north, CATH the south.
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 ????
obe wan
Regular
Don’t know about that ; it’s states in the ann - PR13359 The Mining Licence . Sounds to me like the JV is going for the lot I.e. North and South
Zijin would have spit up afew fish heads this morning .
I’m also liking the avenue to take up 49.5% in CATLs hydroxide plant in DRC … considering the articles just this week , where US has banned CATL supply of lithium into military equipment … now the US see CATL in the box seat and taking up all non allocated offtake to 100% .
What’s the US going to do now …. Maybe a big western miner gets pushed in to eventually suck up AVZ and that 49% cherry with it … at least that way ; the yanks can probably say they’re supply lithium out of Manono to themselves
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.
certainly wasnt expecting this, seems to be very left field. overall I take this cautiously optimistically. caution as I dont trust the fucking chinese and wish we didnt need to deal with them but perhaps the reality of the situation is we have to in order to get out of this fucking mess. I think its a positive to have a chinese company in our corner and so chances of moving this forward have increased and likewise chances of a western company buying out avz has also increased.
This deal is massive vote of confidence, as is the $10m unsecured imo.
This deal is massive vote of confidence, as is the $10m unsecured imo.
Mute22
Regular
We were always going to be tied at the hip to CATH/CATL is some regards, and I am glad they are serious about the relationship despite other Chinese company interests.
thewest.com.au
The continued commitment by the worlds largest battery producer is powerful show of confidence to DRC they can have their cake and eat it too, if Zijin can to be pushed out of the picture the West and Chinese are both happy.
I have far more confidence now that the DRC, as they have been stating, will let this go through the courts and then sacrifice some scapegoats at the alter of 'fighting corruption'.
Chinese to plough US$400m into AVZ lithium project
In one fell swoop lithium developer, AVZ Minerals has locked down US$400 million in funding, a serious off-take partner and Chinese backers with very deep pockets and an intimate understanding of lithium battery manufacturing.
thewest.com.au
The continued commitment by the worlds largest battery producer is powerful show of confidence to DRC they can have their cake and eat it too, if Zijin can to be pushed out of the picture the West and Chinese are both happy.
I have far more confidence now that the DRC, as they have been stating, will let this go through the courts and then sacrifice some scapegoats at the alter of 'fighting corruption'.
dollarbills
Regular
Could this be a sign the Chinese have conceded and CATL have set themselves up a slightly better deal (plus lowered the valuation) prior to Zijin offering to buyout AVZ's share?
Skar
Regular
Zijin wants to start mining 2026, US blacklists CATL from military contracts, AVZ uses Locke deal to leverage a slightly better deal from CATH. Rio bought arcadium, PLL+SYA merging (and PLL selling A11 shares), so seems like there are a few things bubbling away.
I have bottom drawed all my lithium holdings because of how cold things are now but a few things I am inferring - US only cares about weakening China (but doesn't really want much to do with Africa beyond that). EV/Electrification in US will likely not accelerate like was predicted in early 2020s.... they kicked the can down the road and likely its another 3-5 years before another big lithium boom, at which point HOPEFULLY AVZ is at a point it can be sold and we haven't been diluted too much.
BRICK
Regular
100 fucking percent.
DiscoDanNZ
Regular
A slight positive you could take from that is that we have an opportunity to get our money back? With all of this shit fuckery I suspect a lot of people who planned on this being a long-term/retirement fund hold will be out the door when an opportunity arises.*
*I will be one of them, I've gone from looking at this as a 10 year hold, debt free early retirement to a 'can I one day pay off 25% of my mortgage?'
Anywho, hey guys hope you are all doing well!
I see this announcement as a huge positive. Am I also reading it correctly that it looks like CATH are basically going to fund the first stage of development? Been out of the loop for a bit and don't know what to think anymore.
P.S I'm going to be in Freemantle on the 21st of Feb and my plan is to have a beer in every pub in Freo while my mates go to Rottnest for the day if anyone wants to catch up for a beer
Hodlandwin69
Regular
The way I read it, "30.5% indirect interest in Manono project through acquisition of shares in green lithium holdings" is 30.5% of the Manono project, so would be 40.66% of GLH (if ICSID and DRC say we own 75% of Manono). Not sure how it can be read your way (no offence)
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