The graph is just a general graph with the assumption of one flagship project.
Stage one is aiming to produce 12,000 tons/year out of 11mt resource (Antas south another 10mt)
Stage two is much bigger at targetting 28,000 tons/year out of 47mt resource
There is also a stage 3
If you strip the cash on hand 32m + 12m (coming from blackrock later) it gives AVB an enterprise value of 110m out of 2 big projects.
Once they get the mining license and funds to start constructing, Pedra Banca will also be fast tracked and should see healthy news flow in terms of drill results, feasibility studies etc. This is important as usually construction, commissioning is boring and most companies see a dip in share price due to lack of news until production commences.
In terms of dilution, they have done quite a bit lately so the odds of another big dilution coming is unlikely unless the brazillian banks bail. This scenario is possible but unlikely as the recent cap raising would be at a discount not premium if it were the case.
AVB Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
