How does AVI plan to finance this mine. Has this been considered yet??
To finance the low case scenario AVI will be needing aprox $1 per share capex. Diluting the share base would mean issuing about +8 x existing share base to raise funds or if they go the way of finance only it would mean repayments of maybe up to $13 milliom from a $25m operating profit leaving $12m for future development exploration and dividends if you are lucky. I suspect production would also be hedged so upside may be limited. I know we have broker reports suggesting the share price should be much higher than this but as we have seen with CDU Brokers can be terrlbly wrong.
Just thinking out loud here and would love to be proven wrong.
AVI Price at posting:
15.9¢ Sentiment: None Disclosure: Not Held
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