It has been really wonderful to read all of the comments from people as to why and when they first invested into Anvil Mining. I have particularly enjoyed reading the “true believers” that do so much to keep Hot Copper informed regardless of the criticism.
I know you shouldn’t get emotional about a stock. It breaks all the rules of investment. But Anvil itself breaks the rules and rewrites them. Personally, I think about the company all the time.
I first bought into Anvil when it was known as KKR Resources NL. Only in a very small way. Down the track it was given a new name and was headed by new management, with a new direction….. Zaire.
Bill Turner had found a piece of ground that was suspected to be so incredibly rich in copper, trees just wouldn’t grown in it. Just 2m below the surface was an ore body so rich, and so very remote, little was known about it.
Somehow Bill and his team managed to acquire the mining leases and then disaster struck. The country erupted into a protracted and bloody civil war. I had just bought 100,000 shares at 18.5 only to watch my investment fall to a low of 2.5c.
But during that time, Bill and his team was not idle. They knew the war would one day end. And luckily Dikulushi was a long way from any conflict. In fact that area never saw any. The DRC is the size of Western Europe.
Anvil bought into a gold mine in Ghana and management and the directors put in a substantial amount of their own money to keep Anvil afloat. People kept telling me just to get out. But I kept buying shares, whenever I had some spare cash. Mostly very small parcels, but over they years, that has added up.
Against the odds, Bill manages to find a bank to lend Anvil some money to build what was really an experimental pilot plant. Stage I the HMS Plant. Against all the odds, Dikulushi was built, Stage I exceeded all expectations. Along with the logistical and transportation problems. A low cost staged development, a new mining agreement that really helps the local people, and a commitment to the DRC for the long term. Anvil in 2004 produces a profit of $US15 million.
Dikulushi has subsequently proven itself to be one of the richest copper/silver mines in the world. But Anvil is not an investment for the faint-hearted. In 2004 there were a couple of heart scares, but proper planning immediately kicked in to ensure the continued viability of the operation. It’s all about managing the political situation and understanding it. A main reason for the move to Canada.
I can appreciate that the DRC can be too much for some people. And fair enough. But for those that stuck it through, regardless of the critics, have been very well rewarded with Anvil growing more than 50% in 2004. The announcement in November has placed Anvil into a new class of company. The announcement last week of the huge tailings project is money for jam.
2005 will be interesting with elections in the DRC. There will undoubtly be drops in the share price. But I know and believe the worst is over for the people of the DRC and nobody wants to see a return to the terrible suffering of its people.
I’ve acquired Anvil shares at all prices, whenever I’ve had some spare cash, because I know and understanding the risks, believe in the management, and the resource. . Yes I wished I’d picked up more shares at 3c, 4c 5c, etc. But don’t we all! So even picking up 500 shares at 74c, to me still looks like a bloody good buy. I believe Anvil will be a multiple dollar stock. Looking at things right now, I’m still acquiring what I can afford, because for those with the patience and nerve, and you will need it, will be rewarded. I’ve waited more than 12 years to see Anvil begin to do what I’d hoped. We have so far, and this is just the beginning. 2005 will be a bloody good year, but not without it’s ups and downs.
All the best
KKR
AVM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
