I have to agree with the fella who started the thread, firstly and simply its still the cheap valuation currently of AVB,if the next round of drilling is positive AVB could easily support a $100 million market cap considering some of the companys next to sandfire who havnt drilled and are valued at $100million.
AVB fully diluted i think around 700 million shares and options could easily support a 14c share price or $98 millionmarket cap, this is just a basic comparison to AVB's peers next to sandfire who have nothing yet nor drilled, AVB have a high grade growing resource that will continue to get bigger,its high grade,shallow and easy to exploit with plenty of exploration upside.
Lets look at somevalue
AVB peers with no resources trading at 100 million.
AVB could easily pile on another $25million to $50 million through exploration upside and the iron ore side of the company,i believe im being way conservative.
Further more the market tends to over value companys with smaller share prices simply because the averge Joe would know what the market cap means and thinks that because a company is 30c they are cheap, this can also lead to higher share prices.
Last of all the market is always hungry to reward a new emerging high grade copper story which is exactly what AVB is.
AVB couldeasily hold a market capof $150 million dollars or a share price just north of 20c fully diluted.
The upside from 6.7c is very realand alive, its the reason i through a big chunk of money at the company yesterday in the low 5's. The upside is far outweighing the downside currently
Good luck all longs !!!!!!
AVB Price at posting:
6.7¢ Sentiment: None Disclosure: Held
