Yesterday, AVZ Minerals Ltd [ASX:AVZ] entered a trading halt on request, pending the release of an announcement. Securities will remain in a trading halt until Thursday, 23 May 2019 (normal trading hours).
Before the trading halt, AVZ Minerals’ share price was sitting at $0.052, an increase of 23.81% from the previous day.
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Why AVZ Minerals entered a trading halt
The company’s pending announcement is set to reveal its Extended Scoping Study.
As it stands, AVZ doesn’t currently have the capacity to begin production at its lithium project Manono. But according to Congo-Km, an African mining intelligence issue, AVZ is moving forward on Manono lithium power plans.
The company has registered a new Lubumbashi Branch in order to develop its own power projects, and is finding a company to build the electrical facilities needed for its lithium project to run.
AVZ is looking into wind, thermal and hydro-electric power projects, with the latter being the likely focus. Alongside Dathomir Mining Resources (owning 10% of Manono’s permit), AVZ is set to regenerate the Piana Mwanga dam, already agreeing to facilitate the work.
AVZ holds 269 million tonnes of lithium resource, which helps stake its claim as the world’s largest holder of the hard rock resource. However, some believe AVZ should seek other power sources to run its project.
Investors should also take note of the recent appointment of Michael Bourguignon as the project manager for AVZ’s Manono lithium.
AVZ Minerals’ 2019 share price outlook
Shares of AVZ minerals have be slowly sinking since the highs seen in January 2018. This week’s price jump has come as a bit of a standout for the company.
Yet there’s the hope that a new announcement set for Thursday will give long-term shareholders the reassurance they need.
But for the rest of us, patience could be key for the outlook of AVZ shares.
For Money Morning
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