AVZ Discussion 2022

[Thaz]

The Railway in the DRC for AVZ purposes has challenges depending on how we go with product refinement. If we go to processing on site, then the rail we have now would be sufficient. In exporting processed material, we fall risk to looters along the way and either need to have the goods heavily secured in their wagons and likely security onboard. Secured, locked and potentially alarmed containers would be the go feeding from a satellite in-cab feed. Trains all tracked by GPS (Starlink thanks Elon?) and monitored by a network controller. The controller can identify if a train has not met the waypoint in the case where a train derails (it happens), brakes down, someone is hurt or the rail becomes impassable.

It would be useful to have a hi rail truck (or drone if someone is smart enough) that runs ahead of the train recording track conditions and identifying problems before the train hits to prevent potential derailment at high speeds - a major hazard for the business. I foresee locals attempting to block the rail to stop the train and loot it as being a problem at least once.

A standard gauge rail with higher speed trains is possible, reducing time in transit and risk of loss to looters etc. The track would likely need improvements to be continuously welded.

The system would not be expensive to set up and operate considering our ROI as a business - and would likely reduce insurance premiums for the business. Adjustments would need to be made to the track, it is wide gauge from what I can see and designed for slow, heavy freight.

If we export unrefined, the volume is much obviously much higher. I have not looked at the grades however at a guess would be looking at trains with a maximum of 2000 tonne, if the geography is anything like the steep landscape we have here in NZ is.

I would suggest AVZ go with something similar to the coal wagons where feed is loaded straight onto the wagon and sealed from the top for movement to the refinement location prior to onboarding at port.
There is less danger of small scale theft of feed, it is harder to convert to export grade product so less need for any sort of security onboard. It would make sense still, to have the trains tracked and monitored as this information becomes vital for planning of plant at the refinement center and port loading estimations.

No need to alter rail gauge would be necessary but if the rail is Chinese I would be looking at the rail itself - they have been exporting rail out of China for several years now which has hollow air pockets in it, which when regular heavy loadings pass over them can cause the rail to buckle or dip, increasing potential for derailment or even for trains to move excessively and damaging the consists. We have had that in NZ and just had to re-rail around 30km of dual main track as a result.

In both instances, I would absolutely avoid Chinese locomotives for the DRC - the Chinese locomotives I have dealt with underperform on steep grades, engines overheating during summer (>25C) and unable to climb in the wet where they slip and slide (they are rated for 1250T here but struggle with 1150T). The locomotives we were sent had walls filled with asbestos, which they used as insulation to save on costs at the detriment of staff in the field. When we requested it be removed, rather than teaching our guys how to do it they sent over their own teams from China and paid them less than our minimum wage.

I was waiting for Nigel to confirm the exact route of export (there are still two options on the table if I am not mistaken, Dar Es Salaam and Lubumbashi?) before taking a specific look at the rail and the route. I believe Dar Es Salaam involves a river crossing and makes more sense for on-site refinement, Lubumbashi makes more sense for unrefined. I was thinking the announcement of location of loading would also give me an indication of the intent to refine on site at Manono or not?

Amazing detailed and in-depth response. Appreciate sharing your thoughts. I'm sure that AVZ would have engaged their own consultant for transport that would have considered these issues as well.

 

[Retrobyte]

Twitter very quiet the past 24 hours - not many AVZ related posts at all. The trolls are exhausted, apart from Geist and his multiple personalities

 

[Remark]

Twitter very quiet the past 24 hours - not many AVZ related posts at all. The trolls are exhausted, apart from Geist and his multiple personalities

Very quiet indeed. I had a look at HC & it's just Davy Boy repeating the same old drivel and lots of moderation.

 

[CHB]

Only so much regurgitation of the same info given how long suspension has been now I guess

 

[Retrobyte]

Until now the trolls have been operating under a classic method best described as "if you haven't heard a rumour by noon, make one up"

 

[JAG]

 

[JAG]

 

[JAG]

 

[Sammy_da_Smile]

Dropped 20min ago.

 

[Hemicuda]

Any one translate?

 

[Rediah]

Dropped 20min ago.

Any translation or whats the gist of it? subtitles didnt work for me.

 

[Sammy_da_Smile]

Any translation or whats the gist of it? subtitles didnt work for me.

Hey mate, switch your browser to "desktop site" if on mobile. What browser you using?

 

[JasonM]

Any translation or whats the gist of it? subtitles didnt work for me.

auto translate was working for me. no new information, its summarising the current situation with the uncertainty over ownership, that AVZ firmly believe they have ownership and that shareholders need to be patient and wait for the outcome via official channels to be announced via the asx.

 

[David holland]

Sounds like AVZ Want to get it right before coming back

 

[Rediah]

Hey mate, switch your browser to "desktop site" if on mobile. What browser you using?

I tried on chrome browser on a desktop

 

[Sammy_da_Smile]

Quick quide:

On the video, click YouTube in blue below: this will open it in your default browser.

Next, click options, and select "desktop site". This will emulate what is shown on a desktop PC. Example below is from Chrome.

Now once you are using the desktop version of YouTube, do the following: (Chrome is odd, that's why I don't use it) but you may have to click the subtitle thing twice.

First click on "German"

Second click the cog (settings) brings up auto translate for which you can select your language of choice:

Any issues let me know, happy to help

 

[Sammy_da_Smile]

I tried on chrome browser on a desktop View attachment 8640

Click german, then re open that menu. It's odd how it does that, but now you should see auto translate and you should be gtg

 

[JAG]

 

[Rediah]

Quick quide:

On the video, click YouTube in blue below: this will open it in your default browser.

Thank you, worked liked a charm.

 

[njoy84]

Any translation or whats the gist of it? subtitles didnt work for me.

Hey

I just wrote down the Transkript of the video for better understanding, nothing new but a good call to not listen to the speculation all to much


"Being a shareholder of AVZ Minerals is currently a test of patience. External obstacles beyond the company's control have been delaying the implementation of the CATH deal for weeks. The deal provides for a transfer of ownership of the Manono project which, according to the original plan, should have been completed long ago. With the implementation of the deal, the further development of the mine is secured, but due to the external resistance, it cannot be moved forward quickly at the moment. We remember that only recently a legal dispute arose around the Manono project. AVZ Minerals is certain about the ownership rights and presents signed documents and agreements which do not prevent the other side from making other claims. This has recently put a lot of pressure on the share. What is important for the shareholders of AVZ is that CATH is not the braking force, on the contrary. Both contractual partners have a strong interest in implementing the contents of the agreement quickly and then to move forward quickly with the expansion of the mine and its infrastructure. For this reason, it was also possible for both contractual partners to extend the end date for the implementation of the transaction agreement once again by mutual agreement and to set it at 31 July 2022. this contractual adjustment was linked to the self-commitment to implement the transaction agreement as quickly as possible in order to jointly drive forward the further development of the Manono project. As mentioned, the ownership of the Manono project remains unresolved. AVZ Minerals itself has no reason to deviate from its legal position, but the other side has apparently not moved or not moved decisively. The dispute is therefore still ongoing. However, as it can be assumed that the unresolved question of the actual ownership structure will have a strong impact on the trading of the shares of AVZ Minerals, the company has applied to the Australian stock exchange to extend the voluntary suspension from trading once again.
The request is for trading to be suspended until 1 July 2022. However, a resumption of trading would be possible earlier if a decision on the mining and exploration rights for the Manono project can be made and announced to the market beforehand. Shareholders therefore have no choice but to be patient for probably another 4 weeks and wait to see what the results of the negotiations will be behind the scenes or what position the government will take on this issue.

This is not particularly pleasing, but investors have no other choice. Nevertheless, we are keeping our fingers crossed for all investors that the situation will be resolved as quickly as possible and in favour of the shareholders.
Unfortunately, that is all the information we have on the current situation.

It is important to emphasise that the nervous shareholders among you should not get involved in extreme speculation. Official statements can be found directly from avz minerals in english and in german at axinocapital.
And any information or thoughts outside these official sources are not necessarily correct. Speculation is sometimes appropriate and can help, but one should not lose one's head."