another positive report

http://avancoresources.com/wp-content/uploads/ResearchEurozSeptemberQuarterly26Oct17.pdf

Formatting much nicer on AVB link above.

Do keep in mind the analyst is someone who has taken the trouble/effort to visit the sites.


Avanco Resources (AVB $0.105) Buy Analyst Date Price Target Andrew Clayton 26/10/2017 $0.18/sh Sep Q’ly Report Key Points Positive results across AVB’s projects in the September Quarter. Antas Mine exceeded guidance in copper and gold production, recording its best performance this year. A strong copper price has generated record free cash flows. Pedra Branca commenced its resource extension and reserve definition drilling program. DFS is also progressing well, confirming that the Pedra Branca East orebody remains open along strike. Centro Gold Project continues to take steps towards the accelerated acquisition agreement, enabling AVB to realise value sooner. Production and sales results are as followed:  Cu in concentrate produced increased by 3% on June Qtly. Sales increased by 9.5%.  Au in concentrate produced increased by 6.1% on June Qtly. Sales increased by 7.7%. Record cash flows from operations were $7.15m, a 25% increase compared to the previous quarter. AVB have strengthened cash balances as a result, with $28.5m at quarter end. C1 cash costs increased by 7.5% and AISCC reduced by 5.3%. Investment Case Avanco is a debt free, Brazilian Cu-Au miner with significant growth. The Sep Q’17 continues AVB’s record of delivering on guidance at Antas. Costs should trend lower as strip ratio is scheduled to reduce. Avanco is cum value adding events over the next Q, with resource/reserve upgrades and study updates on all projects, Antas (Cu) mine, CentroGold (Au) and Pedra Branca (Cu). Avanco has proven reliability through the development and operating performance of Antas. Cashflow supports AVB’s near term acquisition, exploration and study objectives. The clean balance sheet, management performance, dearth of quality alternatives and buoyant Cu-Au prices should see it attract the funding required in the medium term to develop the projects. AVB’s reputation in Brazil positions it well for new M&A opportunities. Our valuation remains $0.18/sh. Avanco Resources (AVB) Share Price 0.105 A$/sh Price Target 0.18 A$/sh Valuation 0.18 A$/sh Shares on issue 2649 m(dil) Market Capitalisation 259 A$m Enterprise Value 229 A$/m Debt 0 A$/m Cash 29 A$/m Largest Shareholder Appian 18%

Euroz Securities Limited