AVZ Discussion 2022
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investinvest
Regular
Sounds like DRC are tired of getting ripped off. (old news but new article)
MINING.com: Giant Congo cobalt mine exports at risk as investors feud - MINING.COM.
Giant Congo cobalt mine exports at risk as investors feud
An intensifying feud between shareholders of the Tenke Fungurume mine may lead a court-appointed administrator to block its exports of copper and cobalt.www.mining.com
Two examples of Chinese company hypocrisy on show:
(1)
“No other person has the right to interfere with TFM’s operations,” Zhou said. “Letters from the so-called provisional administrator, without the approval of TFM’s shareholders’ meeting and board of directors, are not binding on TFM and do not represent the will of TFM to external parties.”
Hypocrisy: CMOC does not recognise a legal court-appointed temporary administrator because this action was not approved at a TFM shareholders' meeting and BoD. But Zijin/Jin Cheng objected when AVZ did not recognise an alleged legal decision to approve the Cominiere/Jin Cheng sale as it was not approved at a Dathcom shareholders' meeting and BoD.
(2)
"Bollore said in an email Saturday that it received the temporary administrator’s missive and its position is “in line” with a letter sent Friday by Tenke’s counsel to Congo’s customs agency, which said that Ngoie was not the legal administrator as long as the court’s decision to appoint him was under appeal."
Hypocrisy: CMOC treated the court decision to appoint a temporary administrator as not legal as it is still under appeal. But Zijin/Jin Cheng objected when AVZ treated the alleged court decision for the Cominiere/Jin Cheng sale as not legal as it is still under appeal.
DYOR IMO
3mins 58sec " We've got a lot of support coming from the Minister for Portfolio" Nigel 8/12/21
Something changed her mind . Brown paper bag perhaps ? IMO
cruiser51
Top 20
Rediah
Regular
As a compensation , AVZ should increase everyone’s holding by 5-20%OK, what's the next announcement from AVZ?
I'm guessing on Thursday we'll cop another 2 weeks.
I wish I had a hat to giveaway, I'd run a book!
Thoughts / bets anyone?
BRICK
Where’s Zeebot 😶🌫️
Negative view : 3 months.OK, what's the next announcement from AVZ?
I'm guessing on Thursday we'll cop another 2 weeks.
I wish I had a hat to giveaway, I'd run a book!
Thoughts / bets anyone?
Positive view: 2 weeks.
Fuck yeah view: resume trading and everything is sorted. Boom shanka I’ll be smashing the Piss
If it's stays suspended they should at least release something in more detail as to why, or perhaps they are playing their cards close to their chest for one reason or another it would be good to know something with a bit of substance.
Time is ticking which I think is the bigger factor here as the longer we sit in limbo the longer it takes to get the white gold out the ground and earning some green for all invested, company,shareholders and the people of the DRC.
Time is ticking which I think is the bigger factor here as the longer we sit in limbo the longer it takes to get the white gold out the ground and earning some green for all invested, company,shareholders and the people of the DRC.
JAG
Top 20
cruiser51
Top 20
The world ran out of brown paper bags, but.......Zijin made sure they they stocked up to the eyeballs, it's called creating an advantage!!!!OK, what's the next announcement from AVZ?
I'm guessing on Thursday we'll cop another 2 weeks.
I wish I had a hat to giveaway, I'd run a book!
Thoughts / bets anyone?
D
Deleted member 2428
Guest
Negotiations continue to be going well with DRC, extension of suspension to 30 August along with CATH TIA. CATH is committed to AVZ, they love us and have nothing to do with Z or China world/ DRC manipulation at all. Nothing to see here, please be patient. Everything is under control. AVZ Management. We maybe 18 months late, but will still be open for mining in 2023, don’t worry, be happyOK, what's the next announcement from AVZ?
I'm guessing on Thursday we'll cop another 2 weeks.
I wish I had a hat to giveaway, I'd run a book!
Thoughts / bets anyone?
D
Deleted member 1612
Guest
At least they’re an environmentally friendly option! They biodegrade so fast it’s like they never even existed!The world ran out of brown paper bags, but.......Zijin made sure they they stocked up to the eyeballs, it's called creating an advantage!!!!
Last edited by a moderator:
thegh0stwithin
Regular
Thank you Cruiser for digging these up. What I picked up out of your contribution here:
First (ASX Investor) video:
7:20 of the first interview Re: CATH is very interesting if you consider some whispers that CATH may either be part of the problem in action, or at the very least in their silence. I can only hope that Nigel is as rock solid in his faith in CATH based on fact as he suggests in this video or that he has stood by his opinion that he will support them as long as they support AVZ.
9:25 regarding mining approval he states "I am hoping for a Christmas present" when discussing when that approval is likely to be given.
12:15 Nigel confirms the Feasibility study will not be released until the mining license is issued.
Second (axinocapital) video:
2:23 is where it starts for me.
2:23 - 2:31 Confirms AVZ is not intended to be a drill and sell project
2:32 - 2:40 Nigel confirms Manono is intended to be the foundations of something "much bigger and globally significant"
2:40 Confirms there is no current offers in front of them (I assume this means takeover offers)
3:01 - 3:11 Nigel confirms all payments have been made to secure 75% ownership in the project. He discusses the right of refusal on the 15% from Cominiere which has been well documented, and that the end result will be either 51% or 66% ownership AFTER the CATH agreement execution.
8:08 Nigel is asked directly about having control of the project. Nigel confirms he has 75% equity in the project, extra right of refusal over the further 15% from Cominiere.
8:45 At this point Nigel addresses "other party involvement" speculation stating that lawyers have reviewed the details and they are 100% sure they have 75% of the project so as it stands with the CATH deal executed there would be a 51% ownership. Should 15% right of refusal be taken up from Cominiere, this would take ownership to 66% ownership.
Please take into account this video was posted by Axinocapital on May 22, the Trading Halt process we are currently in commenced May 9th.
Samus
Top 20
Looks like the articles have started up again prior to Friday. Another take from the Chinese perspective:
Lithium carbonate has risen 10 times in 2 years!Chinese and Australian companies battle for control of world's largest lithium mine
2022-07-12 09:05 HKT
In recent years, under the background of the transformation of the global energy structure, new energy vehicles have ushered in rapid development, and the field of power batteries has also risen. As an important raw material for the production of power batteries, lithium ore has become a scarce resource in the world, known as "white oil" ".
Lithium carbonate has risen 10 times in 2 years!
Lithium ore resources are scarce, and lithium carbonate has skyrocketed 10 times in 2 years
Some experts have analyzed that the penetration rate of new energy vehicles will continue to increase in the future. It is expected that by 2025, the global penetration rate of new energy vehicles may exceed 25%, which is expected to drive the global power battery shipments to 1550GWh.
According to the current mainstream technical route of the power battery industry, lithium is the most important raw material in the industrial chain, and there is no substitute. In this context, once there is a shortage, the price of lithium may increase exponentially. With the thickening of the downward safety margin and the full opening of the upward elasticity, lithium, as the "white oil" in the new era, may usher in a major revaluation.
Take lithium carbonate as an example, its price has skyrocketed 10 times in two years. Relevant data shows that in June 2020, the price of lithium carbonate was only 41,900 yuan per ton, but since last year, the price of lithium began to soar. By March this year, the price of lithium carbonate had exceeded 500,000 yuan per ton . The ton mark, although there has been a pullback since then, is still at a high level.
According to the data of the business agency, on May 20 this year, the price of lithium carbonate was 450,000 yuan per ton.
Lithium carbonate has risen 10 times in 2 years!
Now all countries have realized the scarcity of lithium resources. Under the influence of such market supply and demand, some people in the industry expressed concern that lithium prices may usher in further rises.
The scarcity of resources has opened up the imagination of lithium prices, and the competition for lithium resources in the industry chain has become more and more intense under the background of high prices.
Chinese and Australian companies stage a battle for lithium mines
As the old saying goes, "going all over the world with reason", now, I am afraid it will become "going all over the world with lithium". Under the background of tight lithium resources, companies from China and Australia are staged a "competition for the world's largest lithium mine." war".
The Manono Lithium Mine (Manono) located in the Democratic Republic of the Congo (DRC) is one of the largest lithium-rich LCT (lithium, cesium, tantalum) pegmatite deposits in the world that can be mined open-pit, with a total resource of 401 million tons, containing 1.63% of lithium oxide. AVZ Mining is an Australian-listed lithium mining company that owns control of Manono.
Dathcom is Manono's local operating entity and holds a mining license under the DRC government scheme.
Lithium carbonate has risen 10 times in 2 years!Chinese and Australian companies battle for control of world's largest lithium mine
AVZ claims to hold a 75% stake in Dathcom, and the remaining 25% is held by Cominiere, a state-owned mining company in Congo.
However, on May 11, AVZ voluntarily suspended trading on the Australian Stock Exchange and has not resumed trading so far. The reason is that there are a lot of rumors in the market that it is about to lose control of Manono.
Let's first understand how Manono's equity is allocated:
The Manono lithium mine was initially held 70% and 30% by Dathomir and Cominiere, respectively. In 2016, AVZ bought a 60% stake in Dathmir, thereby gaining control of the Manono lithium mine. During this period, Dathmir also acquired a 5% stake in Cominiere.
Lithium carbonate has risen 10 times in 2 years!
Later, AVZ said it bought 5% and 10% of Dathmir in July 2019 and August 2021, respectively, bringing the stake to 75%. And Dathmir quit the project. So far, AVZ believes that it has achieved "absolute" control over the Manono lithium mine.
In May of this year, AVZ disclosed to Australian investors that it would sell a 24% stake in the Manono Lithium Mine to CATH (Suzhou Tianhua Times), a private Chinese company , and one of the shareholders behind the new buyer CATH is the midstream and downstream lithium mine The leading manufacturer of the industry chain, CATL.
For AVZ, this was a great event. First of all, the transaction price is definitely a huge profit for AVZ. AVZ sold its 24% stake to CATH for as much as $240 million. The consideration for AVZ to acquire a 10% stake in Dathmir is only $15.5 million, a premium rate of 545%!
In addition, if the transaction is carried out according to this plan, AVZ can still retain control of the Manono lithium mine (51% equity).
Another shareholder, Cominiere, which holds 25% of Manono Lithium, is planning to withdraw from the project and transfer 10% of its shares to the Congo (DRC) government. AVZ had intended to use the controlling shareholder's "right of first refusal" to buy the remaining 15% from Cominiere.
Lithium carbonate has risen 10 times in 2 years!
Halfway through, Cheng Yaojin - Zijin Mining
But will it really go so well? Of course not, here we have to unlock a new character - Zijin Mining.
On May 9, Zijin Mining issued a press release stating that it owns a 15% stake in the Manono Lithium Mine, and said that in September 2021, its subsidiary had signed an agreement with Cominier to acquire a 15% stake in the Manono Lithium Mine.
This time, AVZ was dumbfounded. According to its original plan, before the transaction with CATH, AVZ already held 75% of the equity, and only sold 24%. With 51% of the equity, it can still use the "right of first refusal", and then buy from Cominier. 15% stake, raising its stake from 51% to 66%. .
However, Zijin Mining said that after AVZ agreed to sell 24% of its shares to CATH, it has lost its controlling shareholder status, so it is not to mention the "right of first refusal".
Lithium carbonate has risen 10 times in 2 years!
Why do you say that? Zijin Mining stated in a press release that according to the information it obtained, AVZ's subsequent acquisition of 15% of the shares from Dathmir has been invalidated by the court, which means that its shareholding ratio in Manono Lithium Mine has always been 60%.
According to court documents, one-third (5%) of Dathmir's 15% stake sold to AVZ in 2019-2021 was borrowed from Cominiere in 2018, and Dathmir's sale did not require the lender's consent.
The Congolese (DRC) local court recognized the fact that Cominiere had lent the equity, and therefore ruled that Dathmi's sale of 15% of the equity to AVZ was illegal.
In this way, it is equivalent that Cominiere will use 15% of its 30% stake (the original 25% plus the 5% returned by Dathcom) to complete the transaction with Zijin Mining, and 10% will be transferred to the Congo (DRC). ) Government, 5% sold to another buyer "MMCS".
Lithium carbonate has risen 10 times in 2 years!
In this regard, AVZ has not compromised on this. AVZ said that it has filed legal proceedings against Zijin Mining and "deeply discussed" with the Congolese government the validity of the 15% stake it acquired.
The battle for control of the lithium mine is not over yet, but it is clear that the Congolese government and courts are supporting China.
Short-selling agency Boatman also believes that AVZ has a slim chance of winning the lawsuit, because the court has ruled that its purchase of a 15% stake in Dathmir is invalid as early as the end of 2021, but AVZ has been hiding the lawsuit from Australian investors while appealing, And insisted that he has a 75% controlling stake in the Manono lithium mine, and because of this, the agency is also shorting AVZ recently.
Lithium carbonate has risen 10 times in 2 years
It can be seen that some Chinese companies have already taken active actions to ensure the supply of lithium energy. At present, the contradiction between supply and demand in the lithium industry is still prominent. I am afraid that the price of lithium ore may usher in a continuous rise in the future, and this battle for lithium ore It may continue for a while.
Lithium carbonate has risen 10 times in 2 years!Chinese and Australian companies battle for control of world's largest lithium mine
2022-07-12 09:05 HKT
In recent years, under the background of the transformation of the global energy structure, new energy vehicles have ushered in rapid development, and the field of power batteries has also risen. As an important raw material for the production of power batteries, lithium ore has become a scarce resource in the world, known as "white oil" ".
Lithium carbonate has risen 10 times in 2 years!
Lithium ore resources are scarce, and lithium carbonate has skyrocketed 10 times in 2 years
Some experts have analyzed that the penetration rate of new energy vehicles will continue to increase in the future. It is expected that by 2025, the global penetration rate of new energy vehicles may exceed 25%, which is expected to drive the global power battery shipments to 1550GWh.
According to the current mainstream technical route of the power battery industry, lithium is the most important raw material in the industrial chain, and there is no substitute. In this context, once there is a shortage, the price of lithium may increase exponentially. With the thickening of the downward safety margin and the full opening of the upward elasticity, lithium, as the "white oil" in the new era, may usher in a major revaluation.
Take lithium carbonate as an example, its price has skyrocketed 10 times in two years. Relevant data shows that in June 2020, the price of lithium carbonate was only 41,900 yuan per ton, but since last year, the price of lithium began to soar. By March this year, the price of lithium carbonate had exceeded 500,000 yuan per ton . The ton mark, although there has been a pullback since then, is still at a high level.
According to the data of the business agency, on May 20 this year, the price of lithium carbonate was 450,000 yuan per ton.
Lithium carbonate has risen 10 times in 2 years!
Now all countries have realized the scarcity of lithium resources. Under the influence of such market supply and demand, some people in the industry expressed concern that lithium prices may usher in further rises.
The scarcity of resources has opened up the imagination of lithium prices, and the competition for lithium resources in the industry chain has become more and more intense under the background of high prices.
Chinese and Australian companies stage a battle for lithium mines
As the old saying goes, "going all over the world with reason", now, I am afraid it will become "going all over the world with lithium". Under the background of tight lithium resources, companies from China and Australia are staged a "competition for the world's largest lithium mine." war".
The Manono Lithium Mine (Manono) located in the Democratic Republic of the Congo (DRC) is one of the largest lithium-rich LCT (lithium, cesium, tantalum) pegmatite deposits in the world that can be mined open-pit, with a total resource of 401 million tons, containing 1.63% of lithium oxide. AVZ Mining is an Australian-listed lithium mining company that owns control of Manono.
Dathcom is Manono's local operating entity and holds a mining license under the DRC government scheme.
Lithium carbonate has risen 10 times in 2 years!Chinese and Australian companies battle for control of world's largest lithium mine
AVZ claims to hold a 75% stake in Dathcom, and the remaining 25% is held by Cominiere, a state-owned mining company in Congo.
However, on May 11, AVZ voluntarily suspended trading on the Australian Stock Exchange and has not resumed trading so far. The reason is that there are a lot of rumors in the market that it is about to lose control of Manono.
Let's first understand how Manono's equity is allocated:
The Manono lithium mine was initially held 70% and 30% by Dathomir and Cominiere, respectively. In 2016, AVZ bought a 60% stake in Dathmir, thereby gaining control of the Manono lithium mine. During this period, Dathmir also acquired a 5% stake in Cominiere.
Lithium carbonate has risen 10 times in 2 years!
Later, AVZ said it bought 5% and 10% of Dathmir in July 2019 and August 2021, respectively, bringing the stake to 75%. And Dathmir quit the project. So far, AVZ believes that it has achieved "absolute" control over the Manono lithium mine.
In May of this year, AVZ disclosed to Australian investors that it would sell a 24% stake in the Manono Lithium Mine to CATH (Suzhou Tianhua Times), a private Chinese company , and one of the shareholders behind the new buyer CATH is the midstream and downstream lithium mine The leading manufacturer of the industry chain, CATL.
For AVZ, this was a great event. First of all, the transaction price is definitely a huge profit for AVZ. AVZ sold its 24% stake to CATH for as much as $240 million. The consideration for AVZ to acquire a 10% stake in Dathmir is only $15.5 million, a premium rate of 545%!
In addition, if the transaction is carried out according to this plan, AVZ can still retain control of the Manono lithium mine (51% equity).
Another shareholder, Cominiere, which holds 25% of Manono Lithium, is planning to withdraw from the project and transfer 10% of its shares to the Congo (DRC) government. AVZ had intended to use the controlling shareholder's "right of first refusal" to buy the remaining 15% from Cominiere.
Lithium carbonate has risen 10 times in 2 years!
Halfway through, Cheng Yaojin - Zijin Mining
But will it really go so well? Of course not, here we have to unlock a new character - Zijin Mining.
On May 9, Zijin Mining issued a press release stating that it owns a 15% stake in the Manono Lithium Mine, and said that in September 2021, its subsidiary had signed an agreement with Cominier to acquire a 15% stake in the Manono Lithium Mine.
This time, AVZ was dumbfounded. According to its original plan, before the transaction with CATH, AVZ already held 75% of the equity, and only sold 24%. With 51% of the equity, it can still use the "right of first refusal", and then buy from Cominier. 15% stake, raising its stake from 51% to 66%. .
However, Zijin Mining said that after AVZ agreed to sell 24% of its shares to CATH, it has lost its controlling shareholder status, so it is not to mention the "right of first refusal".
Lithium carbonate has risen 10 times in 2 years!
Why do you say that? Zijin Mining stated in a press release that according to the information it obtained, AVZ's subsequent acquisition of 15% of the shares from Dathmir has been invalidated by the court, which means that its shareholding ratio in Manono Lithium Mine has always been 60%.
According to court documents, one-third (5%) of Dathmir's 15% stake sold to AVZ in 2019-2021 was borrowed from Cominiere in 2018, and Dathmir's sale did not require the lender's consent.
The Congolese (DRC) local court recognized the fact that Cominiere had lent the equity, and therefore ruled that Dathmi's sale of 15% of the equity to AVZ was illegal.
In this way, it is equivalent that Cominiere will use 15% of its 30% stake (the original 25% plus the 5% returned by Dathcom) to complete the transaction with Zijin Mining, and 10% will be transferred to the Congo (DRC). ) Government, 5% sold to another buyer "MMCS".
Lithium carbonate has risen 10 times in 2 years!
In this regard, AVZ has not compromised on this. AVZ said that it has filed legal proceedings against Zijin Mining and "deeply discussed" with the Congolese government the validity of the 15% stake it acquired.
The battle for control of the lithium mine is not over yet, but it is clear that the Congolese government and courts are supporting China.
Short-selling agency Boatman also believes that AVZ has a slim chance of winning the lawsuit, because the court has ruled that its purchase of a 15% stake in Dathmir is invalid as early as the end of 2021, but AVZ has been hiding the lawsuit from Australian investors while appealing, And insisted that he has a 75% controlling stake in the Manono lithium mine, and because of this, the agency is also shorting AVZ recently.
Lithium carbonate has risen 10 times in 2 years
It can be seen that some Chinese companies have already taken active actions to ensure the supply of lithium energy. At present, the contradiction between supply and demand in the lithium industry is still prominent. I am afraid that the price of lithium ore may usher in a continuous rise in the future, and this battle for lithium ore It may continue for a while.
DiscoDanNZ
Regular
@Zeebot needs to add an angry react for when articles like this come out
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