Love the chart farlap. AVB is very sensitive to the copper price.The following table from the most recent Bell Potter analysis highlights just how much. Long term Bell Potter where using a "conservative" value of US$2.70/lb. An increase in 20% of this price they estimate as giving a 77% increase in SP. At the current price of Cu they'd suggest we should get to 22c.
Table 3 - Valuation sensitivity analysis
NPV
$m $/sh % increase
Base case = US$2.70/lb Cu 233 0.14
Copper prices +5% = LT of US$2.84/lb 279 0.17 20%
Copper prices +10% = LT of US$2.97/lb 322 0.19 39%
Copper prices +15% = LT of US$3.11/lb 369 0.22 58%
Copper prices +20% = LT of US$3.24/lb 412 0.25 77%
AVB Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
