Noel, I think you need to consider the grade of 1.97% copper for...

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08/12/15

11:33

Post #: 16567823
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Originally posted by NoelHenry ↑

Nice figures robbo24.

Looking at the bigger picture, here are some more, from page 37 of investor presentation, these excited me and prompted me into investing more into Avanco.

Copper at AN - 6.38m tonnes @ $4524 per tonne = $29b return, worst case net profit based on current copper price of $4524 per tonne and cost recovery is $0.25 per dollar) = $7.2b

Copper at AS - 10.08 tonnes @ $4524 per tonne = $45b return, worst case net profit based on current copper price of $4524 per tonne and cost recovery is $0.25 per dollar) = $11.4b

Copper at PB - 18.58m tonnes @ $4524 per tonne = $84b return, worst case net profit based on current copper price of $4524 per tonne and cost recovery is $0.25 per dollar) = $21b

TOTAL Copper at AVB - 35m tonnes @ $4524 per tonne = $159b return, worst case net profit based on current copper price of $4524 per tonne and cost recovery is $0.25 per dollar) = $39b

So we have a market cap currently of $125m for a $159b resource. Plus $556m of gold credits ($1050 per ounce and 530k ounces).

Avanco is the place to be long term. Brace yourself when copper recovers as for every 1c that copper recovers per pound that's an additional $22 per tonne profit for Avanco, ie with a total of 35m tonne that equates to a further profit of $22 x 35m = $771m.

Go copper and go Avanco.

NH (ps someone please check my math).

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Noel, I think you need to consider the grade of 1.97% copper for the resource in your calculations.
It looks like you have calculated 35 million tonnes at 100% copper and not at 1.97%.
The actual published Carajas - Total JORC Reported Mineral Resource contains, within that 35 million tonnes of rock and dirt, a resource of 691,000 tonnes copper metal or $3.1 billion at $4525/tonne.

AVB Price at posting: 5.1¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

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