Interesting you suggest 'Risk mitigated' Gus. The way I read some of the reports from the AGM risk has increased considerably since then thus explaining the sell down.
Ahem...a couple of large elephants in the room.
Firstly....acting upon legal advice no announcements were made about the mine startup. Don't want to upset the natives after the Samarco dam disaster and the perilious state of both the government and economy. HELLO SOVEREIGN RISK.
Secondly...the board were almost given the boot. It appears a couple of our corner stone investors are not happy campers. This could be disasterous. Heaven knows what is happening behind the scenes. If one or two decide to 'cut and run'....
The other on a 'wing and a prayer' mantra is this belief in the copper cycle and China re-booting. Have a look at price cycles in $ adjusted terms. Also Chinas growth may stay (imo will) around the current 7% and currently appears more than enough Cu to satisfy.
If things do pick up in a year or two it will coincide with Oyu Tolgoi coming online. Oh...notice Chinese company bought the huge Freeport copper mine in DRC last week for a couple of billion.
There are good reasons why AVBs SP is abysmal and could well remain so. Good luck...you will certainly need it.
AVB Price at posting:
6.1¢ Sentiment: None Disclosure: Held
