Phil's 2016 closing prediction for copper US$2.50 and we are up to $2.38 this morning. (Source, numerous posts on HC. A few might yet owe him an apology but I doubt they'll come as fast as the naysaying)
AVB current production already closing in on 15,000 tonnes per year with the promise that "Production in the next quarter is expected to see a significant upswing in grade as more extensive high grade ore is accessed from deeper in the Stage 1 pit."
The secondary crushing circuit will lift this production volume further when installation is completed . I would be very surprised if AVB are not up to an 18,000 tonne run rate by end of financial year.
Numis valuation with copper at approx $2.20 was 15c.
No one is yet giving any value to PB when it is obvious that production will be happening within months.
The AVB board continue to seek opportunities for share holders to grow their wealth.
So my AVB valuation based on a PE of 12 and lifting the AISC to the most recent US$1.80 (though that is expected to drop back to $1.60 range again after they clear stage 2 pit surface )
Dropping the PE back to 7 still results in a valuation of 16.1 c.
Only problem is if you want a large holding you are going to push the price up quickly as not many on offer. Wonder why a few have been slowly accumulating for some time ?
Sentiment: You'd be mad to sell.
AVB Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held
