AVZ Minerals shares are scheduled to resume trading next week. Here's what to watch

Will this lithium share return to trade soon?

| More on:
A woman puts up her hands and looks confused while sitting at her computer.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been some time since investors have seen any movement from the AVZ Minerals Ltd (ASX: AVZ) share price.

The embattled lithium developer's shares were halted five months ago and have remained that way ever since.

Will the AVZ share price move any time soon?

As things stand, AVZ shares are scheduled to return to trade at the start of next week on 10 October.

However, the company has consistently named return dates for months, only to push them further back when they arrive.

That's because AVZ shares can only return once the ownership dispute relating to the Manono Lithum Project is resolved.

What is the dispute?

AVZ is currently facing arbitration proceedings from Jin Cheng Mining in relation to the dispute.

This has caused significant uncertainty, as there are various potential project ownership scenarios that could ultimately have a major impact on the company's valuation.

One positive, though, is that AVZ appears confident that a favourable outcome is coming. Last month it commented:

The Company is confident of a positive outcome for it's (sic) shareholders, resultiung (sic) in the re-instatement of trading in its securities.

In addition, AVZ recently hit back at a short seller report, claiming that the short seller was making misleading or deceptive statements. It said:

The Boatman Report makes a large number of false, misleading and/or deceptive statements (including through omission) regarding AVZ and its ownership in the Manono Lithium and Tin Project (Manono Project), all of which are strongly refuted. In particular, the Boatman Report falsely seeks to contend that the Company does not hold legal title to a 75% interest in the shares in Dathcom.

Time will ultimately tell what AVZ's ownership level ends up being.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

smiling worker stands before power generator technology
Materials Shares

Fortescue shares jump 5% on record performance

This mining giant was in fine form during the quarter.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Materials Shares

Should you buy Pilbara Minerals shares today?

Let's see if analysts think investors should be buying the lithium giant's shares.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Expert says this ASX mining stock could rise almost 30%

Let's see which miner is being tipped as a buy for investors right now.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

BHP shares charge higher on record copper and iron ore production

Let's see how the miner performed during the fourth quarter.

Read more »

A man stands with hands on hips surveying construction of three high-rise buildings.
Materials Shares

Building activity on the rise – will ASX materials shares benefit?

New data from the March quarter shows a sharp rise in building activity. 

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Macquarie predicts 11% upside for this ASX materials stock

Here's why the broker is positive on the stock.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Rio Tinto share price falls on Q2 update

Let's see what the mining giant reported for the second quarter.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Materials Shares

Could these 3 ASX materials shares be set to double?

This broker has buy ratings and aggressive price targets for these holdings. 

Read more »