I’m an AVQ supporter but I don’t think you’ll see a 10x return on this investment any time soon. Realistically there is still risk in the level of value of the resource at San Jorge and implementation risk In getting all the projects up and running. I think with San Jorge shipping, AVQ is worth $0.30, with Kolosori signed towards $0.45 and with tenement D signed around $0.60 (because we don’t know the extent of the resource there as well as Kolosori, even though it is much bigger).
But in saying that I think we’re significantly de-risked now with the ability to fund against a functional mine and less dilution going forward. Not to mention that we now know the government doesn’t have something against us and is willing to give us the licences if all things are ticked off. Plus it would make sense to keep the Isabel Project together from an economies of scale perspective.
I think it’s undervalued currently by 20-30% or so but there are still a few hurdles to go before we could get to a price of $0.35+ IMO.
AVQ Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
