Refinery focusThursday's AVL press release shows the focus as Avalon establishing itself as a regional refiner. No mention of Separation Rapids or Lilypad until the very end of the press release. Strategically this is being set up very well. Thunder Bay will be a cornerstone asset. All these pegmatite assets in the region that are close to rail access etc stand to benefit. You can't realistically build out a lithium hydroxide refinery in the hinterlands. You need infrastructure such as Thunder Bay and a population that can support the technical skill sets etc.
What are we talking here, a refinery doing 15,000, maybe 25,000 tons of lithium hydroxide production per year. At todays prices of $78US per kg of 56.5% lithium hydroxide monohydrate AVL's revenues would be a whopping $2.5B per year, not that I'm saying prices will stay there, but holy cow! That's got to be enough annual lithium to enable 1M, 2M cars per year, and once those cars wear out, that lithium will continue on and on in the recycling economy, the birthing of a virtuous circle. Add to this, we currently have U.S. policy, the Inflation Reduction Act that is seriously fiscally pushing global automakers to source raw materials domestically.
I suggest the company spin out the lithium assets into a separate company to make a pure play lithium endeavour. Each 10 shares of Avalon Advanced Materials would be given 1 share of Avalon Lithium. Approximately 40M shares would be outstanding in the new spin-off ,should this new spin-off get traction north of $3 or $4US, then we are talking about a direct US listing on NYSE like 10 years ago, or the NASDAQ. Stands to reason to give the US market better exposure, much of this is because of their government policies. I do believe Nick1969 has expressed a consolidation before, and potentially could be a very very major positive.
I'm just an amateur, please do you own due diligence.