Last thing AVB needed. A problem for AVB (and turnoff for new investors) is the scattered nature of our ore bodies. Soon we will be trucking ore 60 km to get processed. When we process we stick the concentrate in a box and drive it 600 k to a port...one box per truck. Inefficient.
What...we going to be building little plants all over the shop? Once again inefficient. How will one fund? CR with 2.4 billion on issue...unlikely. Debt...with 2.4 billion on issue....that looks VERY unattractive to new investors.
K and the others are no doubt putting on a brave face put they will be VERY disappointed by todays SP response. If wasn't for a few little sales in auction would have been down 3 pips. This result will only harden the view of many to sell into any future spike...as I have been saying will occur for ages. The real elephant in the room in when one of the corner stone holders decide to reduce their exposure.
Dud deal...full stop. Gold is the flavour of the month (despite a correction this past week)...if this deposit was so good or didn't have issues why was it basically sold at a giveaway price? What did gold companies know that AVB didn't?
Now that is the question.
AVB Price at posting:
6.1¢ Sentiment: Sell Disclosure: Held
