AVB 0.00% 16.5¢ avanco resources limited

Yoplait I have some experience investing in gold companies. The...

  1. 20,386 Posts.
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    Yoplait
    I have some experience investing in gold companies. The 3grams are tonne is significant. What you feel find is alot of low cost producers in a variety of minerals are lowest cost not due to the commodity they produce but rather for the credits of the secondary mineral/metal.
    With copper the credit is often gold, with gold it's sometimes silver and with silver it can be led or gold. Having such high gold grades across significant test zones is significant. It is essentially the same thing as them releasing results today with no gold bit copper percentage with much higher percentages. Importantly in a world were copper prices may not be at records a large low cost resource is exactly the thing majors would be looking for.

    On a separate note, I am not chartist but one tool I have used along with FA is Bollinger bands over 3 and 6 month periods. On this measure a move towards 12-13 short term is very much on the cards. Morevover todays SP action will result in a sloping of the BB bands on a more acute angle resulting in the possibility of further price increases while the stock remains within these bands.
    Todays Ann is not only about the good results , but the flagging of results at this level continuing and the high grading of further drilling.

    For those looking at previous price action to determine likely future movements, I find this to be a very flawed approach as each bit of news changes both valuation and sentiment. There comes a point in time when the sum of all news is greater than the individual bits. I really feel that each bit of separate news will result in higher prices as the fundemental value addition for each announcement will increase certainty of value at greater and greater rates.
 
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