re: Ann: Anvil Commences Review of Strategic ... Morning...

re: Ann: Anvil Commences Review of Strategic ... Morning folks,

Considering what happened on Wall Street overnight, Anvil gained 15c to $6.84. Hit a high of $7.15! Copper down 2%

The market liked the announcement. Personally I'm puzzled by it.

I've pasted below a comment from a BMO Capital Markets analyst.

UPDATE 1-Anvil mulls strategic options; shares gain

5 August 2011
Source:Reuters News

TORONTO, Aug 4 (Reuters) - Shares of Anvil Mining rose 2.8 percent on Thursday, after the copper miner said it has begun to review strategic alternatives.

Anvil, which owns the Kinsevere mine in the Democratic Republic of Congo, said its largest shareholder, commodity trader Trafigura [TRAF.UL], supports its decision to consider a sale.

Anvil said there is no assurance that the review will lead to a transaction and no firm timetable has been set to complete the process.

BMO Capital Markets analyst John Hayes said the announcement seemed strangely timed, given that Anvil is well into the commissioning stage of the next phase of its Kinsevere project and that it recently appointed a new Chief Executive after a lengthy search.

"It seems more a shareholder-driven event than a management-driven initiative," he said in a note to clients.

Hayes noted that Kinsevere is a good quality asset and Anvil could serve as an entry point for any miner seeking exposure in the DRC copper belt.

Shares of Anvil were among up 18 Canadian cents at C$6.87 at 1415 EDT on Thursday, while the overall market was down some 3.7 percent overall.