Firstly, AVB will have 32m in cash to burn through for 3 quarters. This is not including 12m Blackrock funds. Debt funding for the remaining 58m (total 58+12m = 70m project funding).
Therefore, 32m for drilling/working capital is separate from project funding and will be sufficient for a long long time. Debt interest has not even been finalized and will only occur after drawdown. This is good debt ie. Debt to create near-future income.
In fact if you look at 5 year chart. Copper is near 2009 levels. If you look at the LME stock levels, they are at 5 year lows suggesting a shortfall.
Then with this you have to weigh in on the strengthening USD, falling Brazillian Real and oil prices. As you know, the project's majority costs are in Real so swings in USD, Real often offset one another. Below is a chart for gold where one is priced in USD over the last 6 months vs Brazil Real to illustrate what i mean. Lower fuel costs will definitely be a bonus for costs as crude oil has fallen substantially.
AVB Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
