Good question, but probably not for this thread. The answer is long and detailed and I don't have time today but will say AVB which is no surprise.
I like the fact that you are taking a longer term perspective and if you have 2020 in mind and you choose AVB, you will have found a company with top class mining men, who have acquired the 2nd largest tenement holding in a region which is known to have the highest concentration of IOCG deposits globally.
Their business model is based on low capex / high return mines which target high grade copper which allows them to be profitable throughout the cycle. This has allowed them to thrive through the down times when others are unprofitable and go broke. This is actractive to me as an investor.
I also point to the recent deals in Centro Gold and more recently with Codelco to acquire Cannaa West. Deals to grow the company at bottom of cycle.
By the time we get to 2020 which is your stated goal, you will find a company which is generating serious cash flow with little or no debt. Look to Kalenn's spread sheet which is based on a PE of 12. OZL PE today is 25 and SFR is 20. There will be a re-rate.
Nothing wrong with OZL or SFR but I doubt they have the upside that AVB has. They are more mature company so difficult to get the multi-bagger with the larger MC.
I also like the currency advantage that we are an Australian listed company, operating in Brazil, earning USD. Brazil is home to Vale and mining friendly. We have excellent infrastructure in the region thanks to Vale and experienced workers locally.
I am going on here when I said I have no time, but I hope that helps.
AVB Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
