Seems to be a lot of folk talking up the similarities between AVB and SFR (in its early days) and seems worthwhile attempting ?rough? comparo between the two. Ie, view "apples with apples" so to speak... Above all this is just my interpretation and you need to do your own research to confirm the info provided here is correct and form your own opinions.
Before I get inundated I also understand this comparison is flawed in many ways ... but is just intended to add to the discusssion.
So as a starter what we need to know from the SFR (early days) is as follows:-
1. Intersections reports around time of spike 2. Market cap/SP at the time of hit spike in price 3. Early estimated strike length 4. Cash on Hand 5. Studies Completed (ie ecomomic /feas etc) 6. Type of Ore 7. Mine Type likely (Open/Underground) 8. Closeness to infrastructure/labour market 9. Mining tax/royalty regime in Brazil? 10. Calibre of the mgmt
Difficult to pick a time when to do comparison given the different stages of their project lifecycles so I choose the date SFR spiked up massively which was the 19 May 2009. The broader market became aware of SFR on this day I reckon as it jumped from around 28c to close around 47c on a massive increase in volume.
So here we go...
1. Intersections reports around time of spike --------------------------------------------- SFR- 21/05/09: Reports 100m+ of Sulphide intersection and some drill results best 22m @ 4.9% cu, and 74m @ 2.4%cu reports it is awaiting further assays .
AVB- 21/09/10: Reports 32.0m at 14.79% cu from 1.0m Incl. 9.0m at 50.49% cu from 18.0m report is awaiting further outstanding assays (Note: There have been several prev reports highlight high'ish grade Cu)
2. Market Cap after Spike (Undiluted) ------------------------------------- SFR- Approx $61m (47.5c Close on 19/05/09 and approx 82.5m shares on issue at that time)
AVR- Approx $34m (6.7c Close (21/09/2010) Today and approx 511m shares on issue)
3. Strike Length ---------------- SFR- Degrussa Approx 400m x 50m, Conductor 1 was 160m south of Degrussa but size unknown as not drilled yet. open in most directions? (Source: SFR ASX announcement 6/07/09)
AVB- High Grade Zone 2km x 500m Approx (Open to west and SE) (Source: ASX Ann 21/09/10)
4. Cash on Hand ---------------- SFR- A$3.7m (as @ 29/04/09 Source: ASX Qtrly). SFR needed to raise capital to continue exploration so around August 2009 there was a rights issue
AVB- A$4.5m (from July Qtrly 2010) However, With the expectation of in-situ iron ore royalties flow from the Trindade North Property, Avanco anticipates shifting to a new operating level as a self funded explorer/developer of copper and nickel projects in the Carajas.
5. Studies Completed -------------------- SFR- Was still in early exploration in May 2009
AVB- did a economic study and expects a decision to mine by end of 2010 based on drill results prior to ann on 21/09/10
6. Type of Copper Ore -------------------- SFR- chalcopyrite
AVB- chalcocite
7. Mine Type ------------ SFR- Initially open pit however most of mineralisation at depth and will need costly underground mining, Eg, Lower parts of Degrussa and Conductor 1 , 4 and 5 (Source: SFR Presentation ASX 06/09/10 pg 12).
AVB- high Grade Zone close to surface (0m - 80m depth) and open pitable... Likely to be much cheaper to mine. (Source: AVB ASX Report 21/09/10 Pg 5 & 7)
8. Infrastructure situation --------------------------- SFR- 130km from Meekatharra. Great Northern Highway transects the tenement package, Goldfields Gas Transmission Pipeline nearby Abundant fresh groundwater (Source: SFR Presentation avail on ASX 06/09/10 )
AVB- Rio Verde is located in a premier location for mine development being close to water, sealed roads and power supplies. The project is located approximately 30 kilometres from the regional mining centre of Parauapebas, with a population in excess of 180,000 and growing. (Source:
9. Mining Tax /Royalties ------------------------ SFR- Uncertain, Is it 10% royalty plus normal company Tax rate??
AVB- Uncertain??? Likely to be better than Australia?
10. Calibre of Mgmt ----------------- Perhaps someone could add some meat to this...?. But superficially ...
SFR- Competent? ... seem to make the right decisions so far given growth in value of company.
AVB- Competent? ... given they have just signed a lucrative deal with Vale they are likely to be on the ball also.
Note: Although I have not read all SFR reports the best grades I have found so far are 52m @17.3% Cu , 8M @27.4% Cu from 146m, 6m @21% cu, 47m @5.3%. I have not reported any Au grades but I believe they are significant in their own right.
It woulds seem that SFR Share price "Took off" much earlier in the companies genesis than did AVB's given AVB has done an prelim economic study and is looking at a decision to mine by end of 2010.
You would also have to ask the question that if AVB is only infill drilling why has the SP not taken off prior to day ?
AVB Price at posting:
6.7¢ Sentiment: Hold Disclosure: Held
