cu & ag, page-17

re: the only negative - miningnut and nt My back of an envelope calculations predict AVL will have a 20% better quarter than last.

Even with the appreciating Aussie $, Cu appreciation has gained even more.

Previous quarterly AVL sold it's 4,000 tonnes of Cu at approx. Aus$2600 per tonne, current price is Aus$3100 per tonne but for this exercise let's average it as $2,900 for the quarter (11.5% increase).

10% more for increased production and greater efficiency gains and round the total down.

We should be seeing a figure around $3.3 mill (2.7 mill last qtr)as the bottom line (depends what they spent on exploration).

This puts AVL on a PE of approx. 6 on current production.

In just 5 months production is up around another 50% (6,000 tonnes per qtr) and using current prices of Cu and Ag we have something around $5 mill per quarter in the bank or a PE of 4 at todays valuation.

This calculation also gives AVL no value for Kapulo, or on it's exceptional exploration potential.

I also assumed that production costs remain at 40c per pound (after Ag credits) which may be lower considering how silver is performing.

All in all there's a lot to like!