BENCHMARK SPREAD 7 METRICS CONTESTATION SHAPE v1.0 — 9 MAY 2026

Manono Lithium-Tin Project — Benchmark Spread

What this is. Public-source divergence on the Manono Lithium-Tin Project where the divergence shape is fundamentally different from a typical asset. Manono's divergence is contestation-driven (AVZ-historical disclosures vs Zijin/Cominière-current operator structure) and trajectory-driven (resources progressively expanded through 2018-2024 drilling and pending Zijin updates) rather than scope-driven (FS vs IA, the typical pattern). The seven metrics surfaced: ownership percentages at JV level; resource estimates over time; reserves trajectory; CAPEX progression; production scope; NPV economics across ownership scenarios; ICSID outcome scenarios with CATH conditional funding implications.

What this is NOT. Not predictive of ICSID outcomes. Not opining on legal merits of any party's claim. Not commissioned by AVZ Minerals, Zijin Mining, La Congolaise d'Exploitation Minière (Cominière), Manono Lithium SAS, the DRC government, or any other party. The full screening framework is at the parent Manono Disputed-Tenure dossier; the methodology is at /methodology/benchmark-spreads/.

Summary view — seven metrics

MetricEarlier sourceLater sourceSpread / driverMost-defensible readingConfidence
JV ownership %AVZ 75% / Cominière 25% (post-Sept 2020)Zijin 54.9% (group disclosure) vs 61% Zijin / 39% Cominière (Reuters JV-level)6.1 pp at current JV level — reporting basisBoth consistent under different reporting bases — confirm with Zijin IRMEDIUM
Total resource (M+I+Inferred)400 Mt @ 1.65% Li2O (May 2019, Roche Dure only)842 Mt total project (Jan 2024, Roche Dure + Carriere de l'Este)442 Mt (110% increase) — drilling expansion842 Mt as M+I+I baseline; Zijin to potentially restate or reaffirmHIGH
Reserves (P+P)93 Mt @ 1.58% Li2O (April 2020 DFS)131.7 Mt @ 1.63% Li2O (per Cantor 2022 update)38.7 Mt (42% increase)131.7 Mt as updated baseline; Zijin restatement pendingMEDIUM
Pre-production CAPEX$545.5M (April 2020 DFS)~$702M (post-PFS revisions)$157M (29%)~$702M as more recent estimate; Zijin actual not yet publicMEDIUM
Production scope (Mtpa)4.5 Mtpa ore (DFS 2020)contested between competing operator positionsRange across scenarios4.5 Mtpa as DFS baseline; expansion potential to 10 Mtpa per CantorLOW
NPV under ownership scenariosAVZ-modeled NPV under PEA/DFS scope (operator-disclosed)Zijin/Cominière-modeled NPV not yet publicly disclosedEnormous range depending on resolution scenarioNOT publishable as central estimate; trigger framework drivesLOW
CATH conditional fundingPre-CATH: AVZ standalone funding constraints$20M to AVZ + 100% production rights for 5 yrs + 30.5% indirect stake (conditional on AVZ claims succeeding)Conditional structure activated by ICSID outcomeConditional only — actual activation depends on substantive ICSID rulingsMEDIUM

Confidence tier convention. HIGH = direct primary-source operator disclosure with regulatory filing or matched cross-source convergence. MEDIUM = single-source or scope-limited operator disclosure where additional context would strengthen the reading. LOW = inference or where multiple defensible readings exist without single-anchor consensus, or scenario-dependent on contested-tenure outcome. Same convention applied across all four case-study Benchmark Spreads.

Metric 1 — Joint-venture ownership percentage

The spread

SourceAVZ %Cominière %DateReporting basis
AVZ original announcement (project entry)65%30% Cominière + 5% other2017-2019Pre-acquisition
AVZ post-September 2020 acquisition (Mining-Technology and Mining Review verified)75% (target post-Cominière 10% acquisition for $15.5M)25%September 2020JV-level via Dathcom Mining
Zijin group-level disclosure (post-acquisition of Cominière stake)Zijin reports ~54.9% in Manono Lithium SAS at consolidated group level
Reuters JV-level reporting61% Zijin / 39% Cominière at Manono Lithium SAS direct JV level

Spread analysis

The 6.1 percentage point delta between Zijin's group-level reporting (~54.9%) and Reuters' JV-level reporting (61%) reflects different reporting bases: consolidated-group attribution vs direct-JV-level attribution. This is methodologically explicable, not contradictory — the consolidated-group view applies cross-holdings and minority-interest treatments that the direct-JV view does not.

The structural complication is the AVZ contested claim. AVZ asserts via ICSID arbitration that its 75% interest in Dathcom Mining (the entity holding original PR13359 rights) was wrongfully diluted; Cominière (DRC state-owned) and Zijin assert the current Manono Lithium SAS structure is legitimate. The percentages above reflect the current operator-side position; AVZ's claimed position is the 75% Dathcom Mining interest under the pre-2022 framework.

Most-defensible reading

Both Zijin disclosures are consistent under their respective reporting bases. A capital committee should (a) clarify with Zijin investor relations directly which figure applies for the institution's specific exposure decision; (b) treat AVZ's claimed 75% Dathcom Mining position as contested-and-pending pending ICSID resolution; (c) recognise that the percentages can be definitively reconciled only after ICSID substantive rulings clarify legal-title status.

Metric 2 — Total mineral resource (M+I+Inferred)

The spread

SourceTonnageGradeDateScope
AVZ initial Roche Dure resource~400 Mt1.65% Li2O / 715ppm Sn / 34ppm TaMay 2019Roche Dure pegmatite only
AVZ updated Roche Dure (post-2022/2023 drilling)669 Mt (67% increase)~1.62% Li2OJanuary 2024Roche Dure post-2022/2023 drilling programme (53 holes, 15,684.7m)
AVZ Manono total project (Roche Dure + Carriere de l'Este)842 Mt (47% increase)January 2024Both pegmatites combined
AVZ exploration target (entire Manono Project)1,000-1,200 Mt1.25%-1.50% Li2OVarious AVZ disclosuresConceptual exploration target — not a resource estimate
Zijin/Cominière post-acquisition updateNot yet publicly published as updated MREZijin to potentially restate or reaffirm under their preferred reporting code

Spread analysis

The trajectory is the signal. AVZ-led drilling progressively expanded the resource from 400 Mt (May 2019) to 842 Mt total project (January 2024) — a 110% increase over ~4.5 years driven by the 2022/2023 53-hole drilling programme adding 268 Mt to Roche Dure alone. Grade has held at ~1.62-1.65% Li2O across the trajectory, indicating consistent geological characterisation.

The current operational structure (Manono Lithium SAS under Zijin/Cominière) has not yet published an updated MRE. Whether Zijin will restate the AVZ-published 842 Mt under their own reporting framework, reaffirm at the existing AVZ-published value, or publish a different number depends on Zijin's internal validation and their choice of reporting code. AVZ's resource was reported under JORC; Zijin (HKEX-listed) typically reports under JORC or CIM standards.

The exploration-target framing of 1,000-1,200 Mt at 1.25-1.50% Li2O is conceptual under JORC — it is not a Mineral Resource and should not be treated as one. It indicates the upside-potential envelope for further drilling, not a bankable basis.

Most-defensible reading

842 Mt M+I+Inferred at ~1.62-1.65% Li2O as the published baseline (per AVZ January 2024 update). A senior reader should treat this as the most recent published resource estimate, recognising that (a) the operational entity (Manono Lithium SAS / Zijin) may republish under their own framework with potentially different numbers; (b) the AVZ-disclosed update was JORC-compliant at publication; (c) further drilling under the current operator is likely to expand the resource further toward AVZ's exploration target of 1,000-1,200 Mt. Institutional users should treat 842 Mt as the floor and the exploration-target range as the multi-year upside.

Metric 3 — Mineral reserves (Proven + Probable)

The spread

SourceReserve tonnageGradeDateScope
AVZ April 2020 DFS93 Mt1.58% Li2O / 988ppm SnApril 2020P+P reserves at DFS publication
Cantor Fitzgerald Initial Coverage (citing AVZ disclosures)131.7 Mt1.63% Li2O / 990ppm SnFebruary 2022Updated P+P reserves per AVZ disclosures
Manono Lithium SAS / Zijin updated reservesNot yet publicly publishedPending Zijin's preferred reporting code

Spread analysis

The 38.7 Mt (42%) increase from April 2020 to February 2022 reflects continued infill drilling and reserve-conversion work under AVZ. Grade increased slightly (1.58 → 1.63%) indicating the additional reserves are not lower-grade infill but reflect a broader resource envelope at consistent grade. Tin grade essentially unchanged (988 → 990 ppm).

Reserves represent a much smaller fraction of total resources at Manono than is typical for sulphide deposits like Kabanga. 131.7 Mt P+P / 842 Mt M+I+I = 16% reserve-to-resource conversion — reflecting the early stage of mine planning and the geological complexity of pegmatite deposits where grade variability requires more drilling for reserve conversion than is typical for orebody-continuous sulphide deposits.

Most-defensible reading

131.7 Mt P+P at 1.63% Li2O as the most recent published reserve baseline (per AVZ updates through 2022). A senior reader should expect substantial reserve growth under continued drilling — the current 16% reserve-to-resource ratio is well below sulphide-deposit norms (60-85%), reflecting Manono's early-stage mine-planning maturity rather than a structural ceiling. Zijin's expected reserve update will likely materially restate this number; the direction is more probably up than down.

Metric 4 — Pre-production CAPEX

The spread

SourceCAPEXDateScope
AVZ April 2020 DFS~$545MApril 2020Initial development phase including SC6 + Li2SO4 plants; required ~$120M of non-project infrastructure
AVZ post-DFS revised estimate~$702MPost-DFS revisions through ~2022Updated estimate reflecting cost inflation and scope refinement
Manono Lithium SAS / Zijin actualNot yet publicly disclosedConstruction underway with Q2 2026 commissioning target
Comparable-asset benchmark: $/tpa concentrator capacity$120-160/tpa for hard-rock lithium pegmatite developmentsIndustry referencesGreenbushes, Pilgangoora, Wodgina, Bald Hill comparables

Spread analysis

The AVZ DFS-to-revised CAPEX delta of $157M (29% increase) reflects standard mining-development cost inflation through 2020-2022 and likely scope refinement during pre-acquisition execution-readiness work. Comparable-asset CAPEX/tpa benchmarks for hard-rock lithium pegmatite developments at 4-5 Mtpa scale typically fall in the $120-160/tpa range. AVZ's DFS at $545M / 4.5 Mtpa = ~$121/tpa is at the low end; the revised $702M / 4.5 Mtpa = ~$156/tpa sits at the high end of comparable benchmarks.

The Zijin-led actual CAPEX during the current construction phase has not been publicly disclosed as a standalone figure. Manono Lithium SAS construction milestones have been disclosed through Zijin (HKEX) investor channels, but the consolidated CAPEX figure for Manono specifically has not been broken out.

Most-defensible reading

~$702M as the most recent AVZ-side estimate; actual Zijin-side CAPEX not publicly available. A senior reader should treat $702M as the AVZ-side reasonable benchmark, recognising that (a) actual construction costs under Zijin/Cominière may differ; (b) cost inflation through 2023-2024 likely increased the figure further if construction proceeded under the original scope; (c) the 4.5 Mtpa scope itself may have been revised. Institutional users should request specific CAPEX disclosure from Zijin IR or proxy via comparable-asset benchmarks pending operator transparency.

Metric 5 — Production scope

The spread

SourceThroughputSC6 productionLi2SO4 productionMine life
AVZ April 2020 DFS4.5 Mtpa ore~700,000 tpa @ 6.1% Li2O~45,700 tpa Li2SO420 years
AVZ Cantor 2022 expanded scenario10 Mtpa expansion potential~over 300,000 tpa LCE (lithium carbonate equivalent)Extended scope
Manono Lithium SAS Q2 2026 commissioning targetNot yet publicly broken out by phasePending operational disclosurePendingPending

Spread analysis

The DFS scope of 4.5 Mtpa ore producing ~700,000 tpa SC6 + ~45,700 tpa Li2SO4 over a 20-year life-of-mine is the auditable baseline. The Cantor 2022 expansion scenario at 10 Mtpa was an upside scenario not committed to in DFS — based on the expanded resource at the time it was treated as feasibility-stage upside rather than committed production scope.

The current operator's commissioning target of Q2 2026 has been disclosed at the milestone level (per Zijin investor channels and DRC government statements) but not broken out by phase or scope. Whether the operator builds toward the original 4.5 Mtpa DFS scope, the Cantor 2022 expanded scope, or a different scope entirely is dependent on the construction phase outcomes and the resolution of the ICSID arbitration which affects the scope of legal claim.

Most-defensible reading

4.5 Mtpa ore / ~700,000 tpa SC6 / ~45,700 tpa Li2SO4 / 20 years as the DFS auditable baseline. A senior reader should anchor base-case sensitivity on the DFS scope, treat the Cantor 2022 10 Mtpa scenario as upside conditional on subsequent expansion decisions, and recognise that current operator construction may produce a different scope entirely. Institutional users should request specific production-phase disclosure from Zijin IR before finalising base-case projections.

Metric 6 — NPV under ownership scenarios

The spread

This is the metric where Manono diverges most sharply from a typical Benchmark Spread. Under contestation, NPV under different ownership scenarios produces materially different distributions of the project's expected returns:

ScenarioNPV implication for AVZ-side claimNPV implication for Zijin/Cominière-sideNote
ICSID rules favourably to AVZ + DRC compliesAVZ recovers 75% of Manono economicsZijin/Cominière exposure to settlement payment / restructuringPathway A per platform's mandate-fit analysis
Negotiated settlement outside ICSIDPartial recovery / payment / asset substitution depending on termsOperating continuity under restructured termsPathway B
ICSID rules against AVZ or AVZ withdrawsAVZ exposure to claim costs / no recoveryZijin/Cominière retain full operational positionPathway C
Ongoing arbitration (status quo)Claim value uncertainOperational uncertainty in financing marketsCurrent state; ICSID arbitration resumed 23 Jun 2025, merits pending

Under each scenario, the operator-modeled NPV (whether AVZ-modeled or Zijin/Cominière-modeled) is structurally different. Public-source disclosure does not currently include either AVZ or Zijin/Cominière modeled NPV under their respective scenarios in a directly comparable form.

Most-defensible reading

NPV under Manono is not publishable as a central estimate while contestation is active. A Benchmark Spread on Manono NPV requires either (a) ICSID resolution clarifying ownership at the legal-title level, or (b) detailed public-source disclosures from both AVZ and Zijin under their respective frameworks. Until either condition is met, the platform records NPV as Absent with the trigger framework (ICSID outcome scenarios; CATH conditional funding implications; operational continuity under each pathway) published as the institutional reader's tracking guide. Institutional users with pre-positioning interest should track ICSID procedural and substantive rulings as the primary signal.

Metric 7 — CATH conditional funding terms

The spread

SourceFunding amountProduction rightsEquity stakeActivation
CATH-AVZ January 2026 conditional framework (publicly disclosed)$20M to AVZRights to 100% production for 5 years30.5% indirect stakeConditional on AVZ claims succeeding
Pre-CATH AVZ standaloneAVZ funding constraints (suspension on ASX since 2022 securityholder vote)
KoBold Metals separate framework with AVZ (May 2025)Separate conditional frameworkConditional on dispute resolution + state approvalDifferent conditional structure than CATH

Spread analysis

The CATH conditional framework is structurally important because it monetises AVZ's contested position into specific economic terms — $20M cash (relatively modest), 5 years of 100% production rights (operationally substantial if claims succeed), 30.5% indirect stake (positionally significant). The framework is conditional on AVZ claims succeeding through ICSID; it does not provide AVZ with unconditional funding or independent claim resolution.

The KoBold Metals separate conditional framework with AVZ (May 2025) demonstrates that AVZ has multiple parallel-conditional structures with different counterparties. Each is conditional; none is activated until ICSID outcomes or state approvals materialise. The structural pattern is "private-strategic capital pre-positioning on conditional terms" — different from DFI engagement and different from each other.

Most-defensible reading

CATH conditional terms are publicly disclosed at the framework level; KoBold separately disclosed at framework level. A senior reader should treat both as conditional optionalities for AVZ rather than as activated funding. The structural signal is that multiple private-strategic capital counterparties find the AVZ claim sufficient for conditional pre-positioning — but the activation of any specific framework depends on ICSID and state-action triggers that are outside any party's unilateral control. Institutional users tracking Manono should monitor ICSID substantive rulings (proceedings resumed 23 Jun 2025, Case No. ARB/23/20) as the primary trigger-monitoring item.

How to use this Benchmark Spread

For an institutional capital allocator with corridor-or-asset mandate that intersects Manono, the spread provides three operational inputs:

  1. Treat ownership as contested-and-pending. Both AVZ-claimed (75% Dathcom) and Zijin/Cominière-current (54.9% group / 61% JV-direct) positions are publicly recorded. ICSID resolution clarifies the contested layer; pre-resolution analysis should treat all percentages as candidates rather than as established fact.
  2. Anchor resource and reserve baselines on AVZ January 2024 published values. 842 Mt total M+I+I; 131.7 Mt P+P updated; ~$702M revised pre-production CAPEX estimate. Recognise that operational entity (Zijin/Cominière) may republish under different framework; AVZ-side numbers are the most recent disclosed.
  3. Track ICSID procedural and substantive rulings as primary signal. post-suspension ICSID procedural rulings (status to verify against docket); subsequent tribunal rulings; potential settlement framework; AVZ corporate trajectory under conditional CATH and KoBold frameworks. Tracking is the appropriate institutional posture pre-resolution; speculative pre-positioning under DFI mandates breaches standard frameworks.

What this Benchmark Spread does NOT do

Update triggers

This Benchmark Spread will be updated on three triggers per the published Benchmark Spread Methodology: (a) ICSID procedural or substantive rulings (arbitration resumed 23 Jun 2025; substantive rulings pending); (b) operator disclosures from Manono Lithium SAS, Zijin (HKEX), or AVZ (ASX); (c) the platform's Daily Watchlist surfacing material public-source developments. Each update is recorded in the public Audit Log.