AVZ Minerals : Interim Financial Report – 31 December 2021 – Marketscreener.com

AVZ Minerals Limited
ABN 81 125 176 703
Interim Financial Report
31 December 2021
Corporate Directory
John Clarke – Non-Executive Chairman
Nigel Ferguson – Managing Director
Graeme Johnston – Technical Director
Rhett Brans – Non-Executive Director
Peter Huljich – Non-Executive Director
Chief Financial Officer
Jan de Jager
Joint Company Secretaries
Jan de Jager
Benjamin Cohen
Principal Place of Business & Registered Office
Level 2, 8 Colin Street
West Perth WA 6005
Telephone: +61 8 6117 9397
Facsimile: +61 8 6118 2106
Share Registry
Automic Registry Services
Level 5, 191 St George’s Terrace
Perth WA 6000
Telephone: 1300 288 664 (within Australia)
: +61 8 9698 5414
Email: hello@automicgroup.com.au
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco WA 6008
Telephone: +61 8 9226 0666
Securities Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: AVZ
OTCQX Best Market – OTC Markets Group
Website Address
AVZ Minerals Limited | 2
Directors’ Report
Auditor’s Independence Declaration
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 14
Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Directors’ Report
The directors present their report on the consolidated entity consisting of AVZ Minerals Limited (‘AVZ’) and the entities it controlled (‘the consolidated entity’ or the ‘Group’) at the end of, or during the half-year ended 31 December 2021.
The following persons were directors of AVZ Minerals Limited during the half-year (or as disclosed) and up to the date of this report:
John Clarke
Non-Executive Chairman
Nigel Ferguson
Managing Director
Graeme Johnston
Technical Director
Rhett Brans
Non-Executive Director
Peter Huljich
Non-Executive Director
Chief Financial Officer
Jan de Jager
Joint Company Secretaries
Jan de Jager
Benjamin Cohen
Review of Operations
Manono Lithium and Tin Project (“Manono Project”), Democratic Republic of the Congo (“DRC”)
AVZ Minerals Limited | 4
Directors’ Report
A raft of milestone achievements during the first half of the 2022 financial year has AVZ poised to progress development of the Manono Project in the 2022 calendar year.
Securing a cornerstone investor deal with Suzhou CATH Energy Technologies (“CATH”), completing two share placements for a total of A$115 million (before costs) and increasing AVZ’s equity interest in the Manono Project from 60% to 75% were just some of the funding highlights achieved during the July-December 2021 period.
The Company upgraded its JORC Ore Reserves Estimates at Roche Dure which resulted in an extension of its Life of Mine to 29.5 years based on a 4.5 Mtpa operation. This increase was based on new drilling from the pit floor.
In addition, resource drilling of four new, widely spaced ‘step-out holes at the nearby Carriere de l’Este deposit confirmed further high-grade lithium and tin mineralisation directly beneath thin soil and laterite cover. This work confirmed the presence of sub-cropping spodumene mineralisation at Carriere de l’Este up to 1.2 kilometres long at average widths of 200 metres in places, confirming the deposit as a likely rival to Roche Dure.
Against a backdrop of ongoing impacts caused by the global COVID-19 pandemic, AVZ remained actively engaged with the DRC Government authorities undertaking the awarding of the Permis d’Exploitation (“Mining Licence”). As at the date of this report, the Company remains confident of securing a positive outcome with respect to all licencing and permitting agreements for the Manono Project.
The granting of the Mining Licence for the Manono Project will be a significant catalyst to finalise further binding finance agreements and ultimately, a Final Investment Decision (“FID”) for the Project.
At an industry level, AVZ was honoured and excited to be the only aspiring mining company to be invited to join the DRC’s newly formed Battery Council, which was one of the key outcomes that emerged from a DRC-Africa Business Forum held in late November 2021.
The DRC and Africa are strategically positioned to play a pivotal role in the global transition to clean energy and decarbonisation and the Manono Project will greatly assist to improve the fortunes of the Congolese people, of which AVZ Minerals is very supportive.
The newly formed DRC Battery Council – to be presided over by His Excellency, Chief of State, Mr. Félix Antoine Tshisekedi Tshilombo, President of the DRC and the Executive Secretary for the United Nations Economic Commission for Africa – will be a public-private partnership charged with supporting the DRC Government in ensuring the roadmap and outcomes from the forum are implemented. This will involve implementing a battery value chain that is transformative, sustainable, innovative, socially and environmentally responsible whilst remaining economically viable.
The honour of being invited by the DRC Government to be a member of the newly formed DRC Battery Council is an incredibly significant development for the Company, pending the award of its Mining Licence, Collaboration Development Agreement, Mpiana Mwanga Hydro-Electric Power Plant (“HEPP”) Agreement and Manono Special Economic Zone (“MSEZ”).
Further information on sub-sections of the Manono Project is provided below:
Cornerstone Investor to develop Manono Project
In late September 2021, AVZ announced its wholly owned subsidiary, AVZ International Pty Ltd (“AVZI”) had entered into a Transaction Implementation Agreement (“TIA”) with CATH to co-develop the Manono Project.
CATH is a private investment entity jointly owned by Mr. Pei Zhenhua and Contemporary Amperex Technology Co. Limited (“CATL”), who both have significant influence in the global lithium conversion and lithium-ion battery industry.
AVZ Minerals Limited | 5
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AVZ Minerals Limited published this content on 18 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2022 01:00:06 UTC.


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