re: for periscopes and flats
AVL have currently produced about 1.2 mil oz of silver on an annual basis and stated that they will produce 1.8 mil oz of silver per year after stage 2.
The price of silver has risen in US dollar terms from approx $4.50 to $6.50 within a year.
AVL use silver produced as a credit against the cost of smelting the copper concentrate.
There is a suggestion of a silver shortage and some analysists are predicting $10 per oz in the near future.
Each cent that silver rise is worth $12,000 to AVL at the moment rising to a potential $18000 in stage 2
Therefore since silver has risen $2 over the last year, this should now provide AVL a benefit of about 2.4 mil US (based on 1.2 mil oz produced)
Once production reaches 1.8 mil ozs then the benefit will be an extra 1.2 million US making a total of 3.6mil US dollars since silver was $4.50.
If silver goes to $10 and AVL produce 1.8 mil oz of silver in stage 2 then the benefit to them is an extra 6.3 million on top of the 3.6 million.
In conclusion, if silver reaches $10 then the benefit to AVL will be an extra 10mil US clear profit (using $4.50 as a base)
I kow there are a lot of if, but treat it as you will.
With the rising price of copper and silver, the profitability and potential of AVL has to be blue sky stuff.
