AVL pauses for breath after weeks of strong sp growth.
38 cents (capped?) is a temporary resistance. No doubt the longer this resistance holds the stronger the surge which takes it out. Likely - not certain of course.
As share price increases AVL becomes a more attractive stock for institutions interested in taking a multi-million position in developing companies or (hopefully in this case) future leaders.
So continued buying pressure is the focus for a building up of steam ready for a move to the next station.
CATALYST? To break this short term resistance a catalyst - or change in circumstances - is required.
The last "catalystic" event was the release of previous quarterly report which stated what HC already anticipated, that the producing mine had become strongly profitable.
The next likey catalyst will quite possibly be the next quarterly repport due this week. It has been tipped that the quarterly profit will be in the region of $2 million which might well move the sp.
Another factor which interests is the accumulation of funds - mining profits, early conversion of options, line of credit from Rand. B. Then there is the programed excise of options due in April.
Could Bill Turner be planning something above and beyond? Perhaps an acceleration of mining output and processing? Another mine? Upgrading machinery and infrastucture to further increase output and profits? Or other?
So sp increase is likely due to - Positive news regaring profits. Increase in proven resources at Dikulushi. More mineable resources being brought on board with results of further drilling in other designated areas. Progress on Stage 2. In approximatelly 6 months Stage 2 is likely to come on steam and will double profits. One should not be surprised should share price double from present price to 80 cents plus as Stage 2 profits come on board. To the contrary! Continues increase in world price of copper - tipped to be in short supply for several years to come.
What is aparent is that those who are 6 months patient can look forward to very strong returns on holding of AVL.
What one can not predict is the extent of which "wild cards" are likely to move sp much higher even.
We know exploration is likely to produce positive results. There is sufficient knowledge regarding the Kap.- deposit to enable another mine operation to go ahead - although further detailed drilling and analysis is taking place.
Bill Turner's growing "war chest" will not be allowed to sit for too long. Expect the unexpected. And it won't be bad!
This week is shaping up very nicely. Bring on the quarterly report!!
