Thanks rusty02... yeah, the botttom drawer thing was a reference to Pantera being in production well into the future, but it is yet another source now of periodic positive and exciting news flow for AVB as active drilling gets going. To help the SP.
Establishing a very large JORC copper deposit in a first class location must have a capital value for Brokers to tack into the Company Valuation... at some point. Just as has been done for the Centro project now. (Big difference in values brokers allowed for Centro though). I am happy to work with the mooted figure of 400,000t copper for now at Pantera.
The very possible big upside to tonnage is great fun to consider. Very exciting!! Icing on the cake etc.. for sure.
So many options become available to AVB.
Would it not be funny if just as AN was winding down and AVB was looking for a new home for all of its AN production plant (which has been upgraded to 25k p.a say) Pantera was set to fire up. That would obviate the need for a $150m capex, with any small remainder at AN being trucked to PB.
Maybe that is on the Master Plan.. daisy-chain AN and Pantera?
Ah, dreams!! But you pay management to have such wide Vision.. the big picture.
Anyway... Let us assume though that an increased tonnage does results in an extended capped payment stream of $3m pa in 14 years.
That first payment of $3m in (14+1) 15 years time at a discount or nominal inflation rate of say 5% would have a purchasing power off exactly half, or $1.5m ... which is likely the cost of AVB's annual office party.
Somehow I do not think I will sell my AVB holding just yet.
AVB Price at posting:
9.5¢ Sentiment: Hold Disclosure: Held
