Another lithium stock AVZ was the markets 2nd best performer yesterday, with the alkali metal undoubtedly the best sector for outperformance on Tuesday with Allkem (AKE) and Pilbara (PLS) also in the leading pack. The markets reacted positively to the companies $75mn capital raise and commitment to $25mn investment into its drilling project in the Congo. This $3.5bn lithium developer has a huge deposit waiting to be utilised but the Congo has a very mixed track record hence as the companies yet to deliver a profit we feel the risks with AVZ are too high at today’s valuation i.e. we prefer other ASX lithium stocks.
MM is neutral AVZ
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