Since our loan is going to be with a Brazillian Bank lets look at the price of copper in BRL.
Below is a chart for Copper in BRL for the last 2 years.
As you can see the price is actually higher than in March 2014. The price data however ends at 12 Jan as there is no data on 14 Jan yet. We can easily check this by doing the below.
With an exchange rate of 1 USD = 2.64298 BRL (using latest rate on Xe.com) and the latest copper price on ***** of USD2.6935 per lb of copper, we will come up with a 14 Jan BRL copper price of 7.12 BRL/lb. This is still higher than the price in March 2013 and March 2014.
Another thing to consider is also the gold price which has risen against the drop in copper.
Last but not least, if AVB intends to wait on that remaining 5%, that means it must be very confident to secure it. I mean why waste time waiting for 5% of 58m which is 2.9m when they have 25m in cash and that doesnt include Blackrock's 12m. In my opinion, the remaining 5% is already secured informally but awaiting paperwork.
AVB Price at posting:
8.1¢ Sentiment: None Disclosure: Held
