In my view, the market has only just started to factor in what lies ahead of us in stage 1, let alone stages 2 and 3. Kalenn's models suggest 3-4c return per share per annum stage 1 and many multiples of this for stages 2 and 3. A number of HC members believe the short term sp could or should be somewhere between 15c-18c when the 'big 3' announcements are made (shortly). BUT this is such short term thinking!
I'm far more interested in the fact that these milestones (big 3 Ann's) will not only trigger stage 1, but they are the key to unlocking stages 2 and 3, and also the key to further exploration in elephant country.
AVB has the potential to turn from a penny stock into multiple $'s. As it stands (with all things being equal, ie market cap, JORC, finance etc) the sp should be sitting at an all time high, but the market has (and rightly so) has been very conservative with factoring the risk into the current sp. I'm not concerned at all about the day to day fluctuations in sp, nor the small swings of 1-2c. I'm excited about the prospects of stages 2 and 3.
The up coming ore reserve will confirm a exceptional average grade with very clean metallurgy. Mining licence combined with ore reserve (in that order) will trigger finance. These 3 key milestones will see some very happy long term AVBers.
It is only a matter of time before the market (along with big instos) come to realise the potential of stages 2 and 3. Stage 2 has a potential projection of 80,000 tonnes p.a. And the stage 3 potential is eye watering. In addition to all of this - AVB has one of the largest tenement holdings in the Carajas (second or third i believe).
I for one are looking forward to a significant re-rate in July/August, be it multiples, a new high, or even teens - many are still unaware of AVB's potential upside (which is much more than most explorers).
Sentiment 'stage 1 is only the beginning - stages 2 and 3 will create the REAL wealth'
AVB Price at posting:
10.5¢ Sentiment: None Disclosure: Unspecified
