AVZ Minerals Witnessed 7.9% Share Uplift At ASX – All That Investors Need To Know

AVZ Minerals Limited (ASX:AVZ) has declared that the organization has observed a promising outcome from its Mineral Resource drilling at the Manono Lithium venture in the Democratic Republic of Congo. The company has received strong results from eight diamond drill holes at Roche Dure identified as MO18DDO72, MO18DDO77, MO18DDO78, MO18DDO79, MO18DD080, MO18DD081, MO18DDO82 and MO18DD083. The company has received one of the best results within MO18DDO72 intersecting 231.83m @ 1.73% Li20 and 1,089ppm Sn from the ground surface to drill section 7800mN.

 The organization as of late has offered, qualified investors, to subscribe up to $15,000 of new fully paid ordinary shares, free of brokerage and commission under Share Purchase Plan. The subscription to the new ordinary share was optional and was exclusively for eligible shareholders (Holders of fully ordinary shares in the capital of the company as at 23rd January 2019 and whose registered address is in Australia or New Zealand).

As per the company’s announcement on 6th February, the company's managing director, Mr Nigel Ferguson has stated that the project was progressing rapidly. It now controls the largest lithium resource than any other company listed at Australian Securities Exchange.

The managing director of the company further added that the high pace of activity over the last two quarters required material investment and now the company wanted to raise additional funds to maintain the pace of the progress and deliver a DFS for the project in 2019. The extra finances would be utilized for advancement exercises, for example, hydrological test-work, ecological investigations, pit-dewatering and as working capital.

The lithium prices have endured a sustained period of decline and in turn, has exerted the pressure on the share prices of the company. However, the demand for lithium is expected to surge concerning the electric vehicle and the need for electricity storage batteries. The Lithium as a raw material is used in an electricity storage battery, and the actions by major economies like China in the electric vehicle segment such as high spending and stance to curb pollution can mark a surge in the raw material demand.

As per the Manono Scope study, Manono is the largest undeveloped hard rock lithium project in terms of grade, mine-life, and expandability, globally. As per the company for the quarter ended 31st December 2018, it yielded a 26% drop in transportation cost and a 16% decline in operational cost. Net cash from operating activities marked an outflow of A$5.631 million with A$ 4.743 million on exploration and evaluation process and have Cash and cash equivalents of A$ 910,000.

At the end of the trading session (as at 15 February 2019) the share price of the company stood at A$0.041 up by 7.895% from its previous close. The share has made a high of A$0.042 and a low of A$0.039. Although the stock has provided a negative return of 60.82% over last six month, the investors may keep the stock in the watchlist, given its performance change of 63.02% since its inception.

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