Seems like a very productive quarter. It is a pity they didnt announce some of them in separate announcements. However results are results.
1. One offtake is in the bag already and executed. They are bound by confidentiality agreements so can't disclose the details.
2. First cash sales already received in late april. There is still 20m left after finishing construction and we should see this cash pile increase or at least break even from now on.
3. Good drill results for PB.
4. The revised study programme aims at proving up the viability of a low CAPEX small scale “trial mine” at Pedra Branca East (“PB East”) as a first step towards full scale construction and production as market conditions improve. Small scale underground mining is envisaged with the high grade ore being transported to the Antas plant for beneficiation. The idea being to utilise the residual/unused plant capacity at Antas. Spare capacity and/or any enhancements needed at Antas will likely be confirmed in late quarter two or quarter three and be included in the study.
This is very interesting as we could see ore from PB being used to get some near-term cashflow.
AVB Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
