jorc copper means nickel drill free carried

This is an exciting stock

- maybe some recent focus on the nickel drill, but lets just have a look at their copper mining operation.

In the early stages of copper production, it might be said that Avanco will be in the bulk commodity business.

Investors are most familiar with coal and iron ore operation, whereby much of the effort and cost is in actual transport and shipping of the ore to port or customer. Very low risk stuff, as long as you have a customer.

This is exactly what Avanco will be doing with road transport of 5,000tpa of ore containing 20% copper.....to a copper smelter customer on the east coast.....or at the coast, the company would have the option of direct shippment to China.

In a detailed scoping study report, released on the 8th Feb 2010...the company provided cash flow details, of $10m PA pre tax profit. Like all start up companies, they are carrying some tax loses.....so this is going to be an extremely profitable operation.
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Just looking at the copper transport operation a little more......eg

It costs Rio Tinto $20 per ton for mining and rail tranport of iron ore to Port Headland...which they get paid $70 pt nett.

Avanco will probably use about 25 ton trucks to move the ore in bags (ie what they dig out of ground containing the 20% copper)....to the coast. (its no small trip)

....but in contract to Rio Tinto iron ore, AVB copper will be paid about $1,000 per ton of ore (containing 20% copper). Obviousl their transport costs wil be much higher, than Rio,s slick rail operation.

One trip to the coast every other day, to achieve their production target....point is, this is a very low risk operation.

I think the share price will move up 3 times,( or cap of $35m) as this copper operation cranks up.

Company is a little beauty....completely undiscovered.

Classic example today.....all the action today in the ordinaries, came to a grand total of $180,000 traded...yet the company say they will make $10m profit PA soon, just from their copper.

$180,000 on solid volume and a big % up day...just means the market cap is out of wack with future profits.