Yes, electric cars should eventually expand greatly, and perhaps low oil prices are delaying that somewhat. Can't forever though and anyway, there must be plenty of consumers who feel it is a very desirable development, which may be a stronger factor than any dampening effect of cheap oil.
The problem with expecting a return to 'China-boom copper prices' on the back of electric car expansion is that the present copper supply reduction appears to be contrived by lowering of production rather than outright unavailability, otherwise the apparent low levels in warehouse shortages would have already driven the prices back up.
Since that artificially constrained supply can be replenished by increasing production again when the the price goes up a bit, the expectation that the copper price is suddenly going to go bananas seems less likely to me than it does to some.
There seems to be a disconnect in some of the discourse here about how well AVB is performing and how well investors in AVB are faring. AVB is doing fine, it has a producing mine, someone to buy the copper and prospects of further resource coming to light at AN and still the expectation that PB will be scratched at later. However, regardless how much supporters want to decry the deplorable SP as somehow irrelevant, and critics as dupes or worse, there has simply not been a satisfactory return on investment over the journey so far for most.
Mind you, despite not sharing the more optimistic views expressed by some, and being disappointed to see it reach this level again, buying AVB in the 5 cent range actually seems a pretty reasonable proposition. It should have 7 years (plus) of revenue and anything may happen in that time - some of it has to be good!
AVB Price at posting:
5.7¢ Sentiment: None Disclosure: Not Held
