I think where the AVB SP ends up in the next 12 months depends on you own view on a range of things. After all the company can only do what it controls and that is building Antas plant and mine over the coming months, commission it and produce concentrate.
Other than that, develop Stage 2. As we know from the AGM, its a matter of how Stage 2 will be approached. The numbers in the Analysts reports suggest debt to be used.
Depends on your own view on;
- copper over the next 12 - 18ths
- what China does to stimulate its economy
- currencies US/Real/A$
You also need to factor in the possibility of a discovery along the way as well as corporate activity on a range of different fronts.
Avanco are emerging in an environment which is scorching other companies. Recent meeting of AVB management with Brazilian Federal ministers have assured support. AVB is second largest tenement holding in Carajas, debt free, providing over 300 jobs locally when companies are closing mines due to low grades. Largest land holder Vale, seeking to raise cash to fund Salobo development.
What I am getting at is that these tough times we are doing very well indeed. We will be doing even better next year when cash flow positive, with a clear plan on monetising stage 2 and perhaps a discovery of stage 3.
AVB Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
