Insights

AVZ share price suspension: What is the Manono Lithium Project they are fighting over?

Why are AVZ shares staying suspended?
The post AVZ share price suspension: What is the Manono Lithium Project they are fighting over? appeared first on The Motley Fool Australia. –

The AVZ Minerals Ltd (ASX: AVZ) share price is currently suspended and is expected to stay that way for at least the remainder of the month.

This is due to the lithium developer battling legal proceedings relating to the ownership of the Manono Lithium and Tin Project in the Democratic Republic of the Congo.

Last month China’s Jin Cheng Mining Company launched arbitration proceedings in the International Chamber of Commerce in Paris. It is seeking to be recognised as a shareholder of Dathcom Mining, which is the owner of the Manono project.

The worst-case scenario could see AVZ’s shareholding in the project reduced from a majority 75% ownership today to just a minority 36% ownership. This includes the proposed sale of a 24% stake to Suzhou CATH Energy Technologies.

What are they all fighting over?

The Manono Project is located 500km north of Lubumbashi in the south of the Democratic Republic of Congo.

It is home to the world class Roche Dure Mineral Resource, which is one of the largest undeveloped hard rock lithium deposits in the world.

The company highlights that the Manono Project is strategically positioned as a clean, sustainable source of lithium, significantly contributing to the green energy transition and feeding the global lithium-ion battery value chain.

Initial production is expected to be 700,000 tonnes per annum of lithium spodumene concentrate with 6% lithium oxide content (SC6) and 46,000 tonnes per annum of primary lithium sulphate.

It also comes with industry-leading ESG credentials and is forecast to be one of the lowest carbon emitting hard rock mines in the world.

When will the AVZ share price return?

At present, the AVZ share price will remain suspended until the end of the month.

However, the reality is that it could come back sooner or later than this date. Given the impact that the loss of a significant share of the project could have on the company’s valuation, it is unlikely to return to trade while this dark cloud hangs over it.

So, investors may need to be patient and wait for this to be resolved before they see their AVZ shares trading again. Fingers crossed for a positive outcome.

The post AVZ share price suspension: What is the Manono Lithium Project they are fighting over? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AVZ right now?

Before you consider AVZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

The AVZ share price suspension will continue until when?
These were the worst performing ASX 200 shares in May
5 things to watch on the ASX 200 on Wednesday
Here’s why the AVZ Minerals share price caused such a stir in May
What’s happening with the AVZ Minerals share price now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info