Operating Margin

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Price: 0.78 AUD

Market Cap: AU$2.8B

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Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

AU$0

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

AU$0

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		AVZ Minerals Ltd ASX:AVZ	2.8B AUD	Loading...
AU		BHP Group Ltd ASX:BHP	261.8B AUD	Loading...
AU		Rio Tinto Ltd ASX:RIO	253.2B AUD	Loading...
UK		Rio Tinto PLC LSE:RIO	111B GBP	Loading...
MX		Grupo Mexico SAB de CV BMV:GMEXICOB	1.6T MXN	Loading...
CH		Glencore PLC LSE:GLEN	63.6B GBP	Loading...
CN		CMOC Group Ltd SSE:603993	570.4B CNY	Loading...
SA		Saudi Arabian Mining Company SJSC SAU:1211	248.9B SAR	Loading...
CN	C	China Molybdenum Co Ltd OTC:CMCLF	65.6B USD	Loading...
UK		Anglo American PLC LSE:AAL	41B GBP	Loading...
RU		GMK Noril'skiy Nikel' PAO MOEX:GMKN	2.6T RUB	Loading...

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AVZ Minerals Ltd
Glance View

Market Cap

2.8B AUD

Industry

Metals & Mining

AVZ Minerals Ltd is an Australian-based exploration and development company that has carved out a niche in the burgeoning world of lithium mining. Its cornerstone asset, the Manono Lithium and Tin Project situated in the Democratic Republic of the Congo (DRC), is touted as one of the largest undeveloped hard rock lithium resources globally. With the rise of electric vehicles and renewable energy, the demand for lithium, a critical component in batteries, has soared. AVZ's strategy is to capitalize on this demand while positioning itself as a key player in the supply chain through the development of vital mining and processing infrastructure. The Manono project is pivotal not just in size, but in its potential to significantly contribute to the supply of lithium – a backbone for the world’s shift to clean energy. To make its mark, AVZ Minerals engages in activities across the mineral exploration and development stages. By drilling and assessing the site's potential, the company delineates the scope of its resources. Its business model pivots on advancing these assets from exploration towards production, thus transitioning from the heavy upfront costs of exploration to potential revenue generation through extraction and sale. Engaging with various stakeholders, including government entities, logistics, and local communities, AVZ works to establish a sustainable operation. Once the lithium and tin are extracted and processed, they are sold to manufacturers who further process these materials into products for the consumer markets. This model not only drives AVZ’s financial engine but also underscores its strategic role in powering the future of renewable energy solutions.

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AVZ Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

AVZ Minerals Ltd
ASX:AVZ

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AVZ Minerals Ltd
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AVZ Minerals Ltd ASX:AVZ