“quality research’…really? ‘why not price sensitive?’ Give us a break, it is just advertising.
“… this marketing communication has not been prepared in accordance with legal requirements designed to promote the independence of investment research”.
Even this ‘marketing communication’ (advertisement) sees the copper price depressed because it remains in surplus ‘…till the end of the decade’.
The ad simply evades any need to discuss the impact of further equity raising for PB by mentioning it in passing and then simply pretending it doesn’t exist.
“We expect the mine to enter commercial production in 2019 and to be financed through a combination of debt and equity.”
But then: “…funded through a combination of internal cash flows and US$135 million of debt”.
Voila – the bane of ABV shareholder’s existence (dilution through equity raising) suddenly disappears. Easy as that, despite copper price still being depressed by surplus (in the ad’s own words) when AVB will be casting around again for debt finance.
Odd they can wax lyrical about wonderful opportunities in the elephant country, but can’t seem to discuss a whopping big elephant in the same room.
When a light-weight advertisement like this gets praised by people who know better it is probably apt that bum jokes became the highlight of the thread.
AVB Price at posting:
7.3¢ Sentiment: None Disclosure: Not Held
