re: the only negative - miningnut and nt My back of an envelope calculations predict AVL will have a 20% better quarter than last.
Even with the appreciating Aussie $, Cu appreciation has gained even more.
Previous quarterly AVL sold it's 4,000 tonnes of Cu at approx. Aus$2600 per tonne, current price is Aus$3100 per tonne but for this exercise let's average it as $2,900 for the quarter (11.5% increase).
10% more for increased production and greater efficiency gains and round the total down.
We should be seeing a figure around $3.3 mill (2.7 mill last qtr)as the bottom line (depends what they spent on exploration).
This puts AVL on a PE of approx. 6 on current production.
In just 5 months production is up around another 50% (6,000 tonnes per qtr) and using current prices of Cu and Ag we have something around $5 mill per quarter in the bank or a PE of 4 at todays valuation.
This calculation also gives AVL no value for Kapulo, or on it's exceptional exploration potential.
I also assumed that production costs remain at 40c per pound (after Ag credits) which may be lower considering how silver is performing.
All in all there's a lot to like!
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