avancoresources ResearchNote 05May16, page-34

Towie0,
What you say about the accuracy of their SP predictions is quite true, and the question you ask as to why we should have any more confidence in this one is reasonable.
What I would say is that if I used an equally broad brush the area the brokers failed in was predicting the copper price. The 2012 report used a copper spot price of $3.70 US/lb which is what it was at the time. The 2014 report used a copper spot price of $2.70 US/lb to guesstimate 12c.

My question for you is, what do you think our SP would be if the copper price was currently $2.70 and on the way up?

I notice in the most recent report from Hartley's their copper price predictions are:
December 2016 $2.45 US/lb
December 2017 $2.69 US/lb

For me I would have to say that using hindsight I have a lot more confidence in the new copper price predictions and as such a lot more confidence in the broker valuations. I also think since we are in a much stronger position as a company much more of the speculative nature of the analysis has been removed.

Given that we know that two separate independent valuations have occurred very recently that give a very close valuation on the 12 month price target, I'd further suggest that more confidence in those predictions can be taken.

Just my take on things.