Yes guys. Not looking good. Return to a reasonable share price will be some time off and slow in the making.
The flip side?
Anvil is facing a situation where just about all the bad news is with us. Share price seems to be finding downward resistance and there is a significant potential percentage upside.
Buyers now would need a slight change in sentiment to reap large percentage rewards. And it appears some are making moves in anticipation.
1. As bad as the Congo situation is it would take a revolution and widespread civil war throughout the country to stop copper production. The present "skirmish" is not of such a nature. Fortunately.
2. Once the Congo Review is released and minimal damage is inflicted Anvil will be in a position to seek funding for the SX-EW and when successful (not if) and operating Anvil will be able to produce copper so cheaply that profits are assured even at present low price of copper..
3. Once the world wide recession has subsided, copper price will firm up and Anvil will be well placed.
When? No one can predict world financial crisis will subside and how long it will take to clear up the aftermath and how soon copper price will improve.
The copper price is not likely to reach the high levels recently enjoyed but with the SX-EW in full production there is no reason why Anvil share price should not reach previous highs.
Unfortunately it is unlikely that the SX-EW will be operating until well into 2010. Late 2010 could be a very happy time for shareholder.
AVM Price at posting:
92.0¢ Sentiment: Hold Disclosure: Held
