ALM has 15.1M shares in Caravel (CVV). CVV announced a...

ALM has 15.1M shares in Caravel (CVV). CVV announced a strengthened PFS early this week, and the share price went from $0.22 to circa $0.30. Canaccord has a target of $0.50 on CVV. This week, ALM's investment in CVV has increased from $3.3M to around $4.5M. If CVV continues to increase, ALM has a nice pot of money to allow them to continue to drill Briggs. Note that CVV is the model being followed by ALM, albeit that ALM's development is around 18 months behind. CVV's PFS is now looking more compelling with a NPV of circa $2B, and an annual Cu output equivalent to Carrapeteena with a (low grade) resource of over 700MT. CVV's market cap is $136M, and ALM's is $12M.

It seems reasonable to me that ALM will sell down its investment in CVV to enable it to drill hard over the next year or so, to substantially increase its resource from 143MT to something approximating CVV.

All other things being equal, ALM's PFS could be stronger than CVV's current PFS given the expected increase in the copper price over the next couple of years.