re: profitably!
With the recent fundraising it will take time before we can reassess Anvil and comfortably predict medium - short term.
What we do know is that Canadians had a great desire to snap up all the recent offering. Implication being that Anvil is regarded as undervalued at such a price and/or Anvil's future prospects make present valuation a great buy. That is the market perception.
Underwriters may have had an interest in having Anvil share price surge on offer - with strong turnover. Ensures successful distribution take up and commission. (a temporary retraction now would be normal - perhaps?)
Where there is smoke there is fire! Could we say Anvil is smoking?
By ensuring rapid development of the SXEW Bill T has to some extent "bullet proofed" Anvil as a company. The elimination of transporting ore to smelters cost, the present cost of smelting (a sellers market) will be significantly lowered too, making Anvil a much lower cost producer. Important if there is an eventual set back in copper price.
To look into possible utilisation of finance raised with the share distribution we may need analysis from the the likes of Miningnut, Flats and Stone Pony to detail projected costs of such things as SXEW plants, exploration budgets, future mine/s, etc.
What we can surmise is that Bill has many options of significance. Choosing the one/s is likely to be the main problem.
A gut feeling suggests more significant agreements with Gecamine/Congo Government.
A dividend could well be announced in the next year or two. With Kulu in full production a certain fraction of nett profit could be passed on to shareholders. Assuming no new large project/s (Gecamine for example) needing development funding eventuate.
In the past the significant determiner of Anvil share price movement was actual profits.
The present quarter profits will be significantly higher as Kulu will have been in full production for the period.
It may well be that even with the new share structure institutions will propel share price towards the $1.00 mark.
Remember Institutions analyse the Quarterly reports ahead of release to the market.
Mid to late April could tell the story. And will likely to be a good one for shareholders.
AVM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
