Ann: Results of Annual General Meeting-AVB.AX, page-116

$man, I'm not concerned with today's share price. I am concerned with the share price in the longer term. The board has set us up to be secure and well positioned to take advantage of a turn around in the macro. The progress to date is just the beginning. There is plenty to come.

As you would be aware, one of the comments made from the floor was that they would pace expansion at PB etc to the copper price. They would be accelerating mildly at $2.20 copper, feeling very bullish at $2.50 or above. They also said they would slow expansion down if required because of copper moving in the opposite direction. ie they would be proactive and responsive in their timing. Colin Jones used an expression to indicate careful bullishness (I've forgotten his exact quote).

Now that they have completed AN and are generating cash new opportunities will arise. They are currently talking about two projects, one a farm in and one an option deal, both inexpensive with good prospects. No doubt there will be other opportunities they are not talking about yet. The import of that news though was that now that AN is complete they are expanding their view, they are looking to add to the portfolio and make us all more money, grow the company etc.

They stated from the floor that the current bank balance was US$20 million, US$6 million banked form concentrate sales and US$2 million on the water and soon to be banked.
I was interested to find out a few past dates as there was little news at the time;
First concentrate was dropped from the filter press on the 11th of March.
First concentrate was shipped on or before the 27th of March (it arrived at the port which is a 12 hour truck run from the plant on the 28th of March).
So first concentrate actually made it out the door in the first quarter.

The fact that they had US$20 million in the bank at the end of March and they have gone through the commissioning process (where they would have been burning money) and yet got the bank balance back up to US$20 million already, suggests to me they are already cash flow positive. They were reluctant to say that from the floor and suggested we would get news over coming weeks when they had confirmed numbers etc but to have the bank balance rising means they are cash flow positive even if ASIC regulations may not allow them to acknowledge it yet.

Also of interest, contingency untouched, working capital untouched. Their savings on the build, including the currency movements that helped considerably, were in the vicinity of US$10 million. Any one can check that for themselves, just look at the budgets and bank balances starting in March quarter 2015 through to now.