No I wasn't watching yesterday. Out and about doing some research. Think we need a shareholders event on the east coast to celebrate the very real progress that will get demonstrated by the upcoming announcement on the $12 million. As a consequence SimonHHH and I went to do a little deep research at this venue...
They have a great private function room on the top floor that has unparalleled views of the Gold Coast and the ocean. We intend to go back for a second test with a few additional AVBers in a few weeks time just to make sure it is up to the task :)
I think it is sending many a little crazy watching the paint dry as we wait for this announcement. I've even noticed many of the long term holders using trading language and focussed on the share price minute by minute. To me that seems a little crazy. It's where we are in 1 year, 2 years etc that will determine reality for me. Hence healthier to be out and about and leaving it to management to build our mine. I'm more excited by the new tenement data than where the traders push the daily price, must be a weirdo I guess :)
PS Awoonga, I think you could reduce the cost of mining for AVB in your valuation...stage 1 they are looking at approximately $1 a pound production costs and they have recently indicated life of mine will extend out significantly with the contemplated underground operation.
Key points from the 4th of March 2013 ASX release:
3% copper average life of mine grades.(Not quite up with SFR but not shabby either)
No need for full mining license to commence production as trial licence recently renewed.
Life of mine C1 costs including royalties and freight $1.10 First important 3 years while paying back loans and getting ready to mine stage 2 at Pedra Branca, C1 costs of 84c (75c without freight so if they do build that blister smelter nearby the costs drop by 10%).
Worth remembering also that the ore body at stage 1 was getting "thicker and higher grade" as they went down. Once they get to that underground extension area we'll possibly see some further improvement in the ore body.
Then we'll have stage 2 running with a similar cost structure...
"If the Western Zone continues to develop in a similar fashion to the Eastern Zone then it is possible that the Stage II could be re-evaluated as purely an underground project. With the prospect of a significantly higher average grade from two underground operations working in tandem, and the reduced capital requirements of no longer considering a tandem open pit operation, this could translate into a far more valuable proposition for the Stage II project." (ASX release 21-2-2013)
Therefore, stages 1 and 2 combined will likely achieve their short term goal of 40,000-50,000 tonnes. They have some interesting tax concessions in Brasil. Basically a portion of the tax to be paid can be kept if it is used for capital expenditure to create new projects. Hence, once stage 1 is running there will be funds that will be available to commence operations at stage 2...this should result in stage 2 being up and running faster than some might expect.
All IMO of course
AVB Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
