Macquarie put out their revised pricing on commodities this morning. Projected pricing for copper is modest over next 2 years but in the following years really accelerates. Using these as a guide along with analyst estimates of the A$ I'm putting together a little "rough" projection of possible cash flow and profit for AVB. I'll try to refine it as time goes bye. The below numbers are for net profit. There will be little or no tax in early years.
2015 $6488 per tonne A$0.85 $23,000,000 (only 6 months production)
2016 $6798 per tonne A$0.80 $50,000,000
2017 $7750 per tonne A$0.80 $100,000,000 (24,000 tonnes as PB started.) Av C1 US$1.50
2018 $8269 per tonne A$0.80 $ 200,000,000 (48,000 tonnes as AN and PB in full swing) Av C1 US$1.50
2019 $8363 per tonne....more than last year.
All the above is VERY rough but somewhere in the likely ball park. 2018 will equate to 12c per share earnings approx. All the above assumes AVB finds no more copper in the ground or new corporate deals to bring known deposits under their control. It will perhaps give a few clues about why Blackrock, Appian etc are invested.
AVB Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
