quarterly financials

The quarterly financial report confirmed what has been put forward recently on this forum ---

1. First quarter ends the serious financial bleeding.

2. Indications are that Anvil will be in profit mode
for the foreseeable future - even if price of copper
remains at present levels or less.

3. Bill has been very busy and has rapidly reduced
workforce and costs to ensure efficiency and is
conserving capital.

4. Establishing the SX-EW plant is the major objective.
The ONLY objective one might add!

5. Obtaining the $200 million loan to finance the SXEW is
a critical factor and negotiations to obtain the loan
are close to complete.
While obtaining the loan is not a certainty all
posturing suggests confidence in a successful outcome
to negotiations.

6. Bill has positioned Anvil to advantage by cutting the
financial bleeding and raising sufficient capital to
eliminate debts and moving Anvil into profit mode.
This is meant to - and will - ensure a
sound base and position Anvil to the best possible
advantage in loan negotiations.

7. If successfully obtained the loan interest rate may be
high but not outrageous.
There may be a imposition for Anvil to hedge which
could turn out to be the largest financial drawback
over a period.


The recent high turnover and relative price stability of Anvil shares - on TSX especially - is possibly a balance between insiders/institutions moving in before the quarterly report and those who have been holding but need to unwind their holding because of the economic downturn.

For those who take the view that the loan negotiations will succeed within a reasonable time frame now is a major opportunity to accumulate with the expectation of multiples of the share price over the next two years.

For those who believe the loan negotiations will not succeed now is the time to reduce holdings.

There should be no doubt that the SX-EW plant will be completed and should the loan negotiations fail there will be opportunities to accumulate more shares at lower prices.

Naturally these jottings are opinions only.

Remember - as always - your guess is as good as!