NH
This release is positive, but the pathetic communications strategy imo is now making the path for AVB much clearer.
Here is my perspective... and ultimately why I will continue to hold.
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I have not held as long as others, but as mentioned recently I have been looking long and hard at my AVB investment.
The bottom line for me is that I believe in Copper, I think the price will eventually come back to a very high level, and I am also a believer of a continuing strong future for China.
If I could be holding a copper play with exploration upside without too much debt at the time of the cyclical return of a high copper price, I will do very well.
AVB are in this ballpark, and despite my protestations on their lack of a communications strategy they are mining geeks. Which is kind of what you want, right.
What I fail to see in the short term is any comprehensive interest in traders or retail shareholders.
In reality, you could argue fair enough... it makes little difference to them, as long as they get their options, wages and suitable exit valuation, it is hardly a priority.
You could also say that for the big shareholders and real long termer it is hardly that important either. They believe they will get there, and when they do... long, big and their own shareholders will do fine.
My problem with their lack of a proper communication strategy is ultimately in my opinion that he value of anyones exit will be lower because of it. Even if you wait till the very end, I do not believe AVB without proper communications will be worth more then one with it. Although I am not from this particular sector my experience tells me this, and I must trust my experience to some degree. The other thing I have learnt in my experience is that people do not change, and this current CEO will never approve a vibrant communications strategy.
BUT having said that this release was positive, all the things we thought were happening are happening, and there is nothing but blue sky.
But when you hold back info and release it in the way they do, retail shareholders start to imagine other possibilities are out their. JV's done in weeks (give me a break, try years!), PB being financed in this climate, and wild exploration results any day soon... even Awoonga was mentioning an offtake deals that might upfront finance of PB (in this climate!)
So all of this disappointment for this release occurs because retail shareholders are left out of the loop in the first place. But in the real world (the boardrooms of Apian) AVB is doing very well.
Time to let go that management;
1 Will procure proper shareholders communications that would encourage retail uptake
2. Care about retail shareholders
Instead the way I am thinking is this...
1. When does management need SP to be higher (option time)
2. Who is winning from a lower share price (the big investors accumulating)
Nothing else logically makes sense when a company can make such a mess from such a great story. They are not listening to retail, they do not care about retail, they only care about their options, the bottom line what they have to file for ASX rules and that the big boys are ok.
I believe we will hit the option price in 2018 because that is the only time they will care about SP, is that a good enough return for you.. it is for me.
Can you hold and take a risk that long?
They care about mining... and maybe this is good, but my prediction is that when this company goes big management will have to change, hopefully before that melee I am out
In the next year or two, it will perhaps be quiet, but at least we have a management team doing what they do best... but they are not doing it for me... and that is the way it needs to be. So in the same way, my shareholding and voting rights I will now treat in the same way...
DYOR
Gus
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