Thought that in light of the Qtrly production numbers released, that this post of mine from back in December was worth a re-read with hindsight. Also dovetails in a little bit with Friedland's comments today (posted by damos) on copper supply/demand. I have highlighted in bold the points of interest:
AC Post Dec-16: I have a Broker contact in London who I communicate with semi regularly. We have NEVER discussed Avanco, and he knew nothing about the stock, the story or management history. However because he "swims in the pool" of small mining stocks I knew he was going to London Mines & Money and so I asked him to check out Avanco for me, which he did (he likes copper). I wanted his initial impressions untainted by anything I might say first.
What follows are his unedited comments. No input - or influence - from me.
"Met up with Luis Azevedo lawyer / geo director. Excellent board. Also met Scott Funston. Another director. Really positive & I liked him. Small operation cranking up to 12,000 tpa Cu from existing operation pushing for 15,000 tpa ( not a figure to be quoted). Positive cash flow - US$20m cash currently . Will be US$ 35m by their year end - so have equity for new mine .Cap-ex of new mine US150m which with the cash & debt facilities won't need to 'go to market '....... Scope for considerable consolidation within the region.
Taking the Cu play further - I had a round table lunch with Simon Hunt ( formerly of Brook Hunt ). Trades as Simon Hunt Strategic Services - very high end networking especially in China & S E Asia - thinks Cu could run to US$7,000 by 2020 !!! Says China growth story still strong & Chinese warehousing Cu cathodes for growth. Overall the Conference was very quiet but from my perspective very good. Lots Of opportunity."
Anyway - thought it was interesting.
Coop
AVB Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
