Trying to have built this mine in the log jam of the ''commodities boom' would have added plenty of dollars to the capex line.
In this 'new normal' for commodities projects, survivorship bias will mean that solid, economic projects will be competing with less marginal projects to build mines, lock in off take agreements, get projects through regulators now takes with protecting plummeting terms of trade etc. so while the share price from small cap mines have taken a pounding, those sitting on truly world class deposits will be able to get much better capex etc. there is also a massive mining project finance industry out there looking for quality projects or smaller bonuses.
If you can ride it out, then the 3-5 year outlook is a cracker.
Now all we need to still know is what will be funding our working capital requirements for the next couple of years. The market is saying equity raise as it is for a myriad of small cap explorers.
Remember macro trends are almost impossible to predict. Look for solid projects in commodities with reasonable demand and supply dynamics and buy them when the market loses its nerve ove sho term macro noise.
Or not.. Good luck to all
AVB Price at posting:
6.2¢ Sentiment: LT Buy Disclosure: Held
