The result of AVB's friendly fireside chat with Vale could be announced any day.
Finalisation will probably be conditional on :
1. Govt approval of transfer of TN ownership and
2. Approval of the outstanding exploration report. (this is being actively progressed by AVB)
The final deal could be a mixture of cash, tenements, equipment. Maybe AVB gets to retain limited TN copper rights?
No complaints if it were to be $40m cash of course, but these guys all like to wheel and deal.
Also I recall from AGM reports, the good BIF iron near Antas South was played down in favour of another much more interesting Iron Ore prospect found somewhere else on their tenements. No details given but unless something is being done about it through Vale, it may as well not be there.
On Friday at day-end a big BUY order for 500,00 shares at 5.6c was placed. It queue-jumped me, as I was on top.
On a positive note, at least it proves there is smart money hovering around AVB! This bigger order might have been getting set in anticipation of a possible Monday morning announcement.
Am trying to hold max shares at any given time in expectation, even if I have to sell off a few to meet T+1, T+3 rules occasionally. Sometimes win, sometimes lose.
I KNOW the company is very frustrated at the Share Price, considering the enormous progress made in the last six months alone! Institutions and sophisticated investors that have held on, believing in AVB and its Management, have happily seen their 10c investment of November 2010 dwindle to 6c today!
The upside of a very low SP is that there is scope for a massive re-rate when something triggers it. (look at SIR)
Even joining exploration peers based on copper in-ground value pulls it up to 17c+ A three or better multiplier of investment! NOT bad at all.
When it is 20cents - 30cents, such upside SP multiples will be far more difficult to sell. Then we will look back on now as "the good old days".
So enjoy while it is still LOW, be happy!...potential is big and company progress is very exciting!
cheers, PP
AVB Price at posting:
5.6¢ Sentiment: ST Buy Disclosure: Held
