The "Shock Drop" associated with the anticipated disappointing earnings as for last quarterly report has probably run its course.
Institutions will now start looking forwards as opposed to looking to the past.
They will see ---
1. Strong likelihood of future profit growth from Dikulushi.
2. Kulumaziba in a developing mine to contribute greater profits by year end.
3. World Bank political risk insurance - to reduce discount for foreign risk in evaluation.
4. Evidence that management is of a high quality in Bill's nomination for EY Award. (Thanks KKR)
The positive revaluation of Anvil is likely to continue over most of this year - with the usual surges and fall backs.
Hopefully 80 cents sooner and then closer to $1.00 by early 06.
Institutions will monitor statistics from Dikulushi - Will move in for stronger share price when there is evidence of successful operations now overburden has been removed ---- and especially when there is proof of increased earnings.
Institutions will be likely to add more premium to share price once it is ascertained that Kulumaziba mine development is close to completion and operation - More so when there is evidence of successful operation.
More so when last quarter 05 earnings are "deducted" by the institutions early to mid January 06 in anticipation of last quarterly report.
This presupposes Anvil management track record of successfully completing projects on time and sound management continues - and there are no market shocks and slumps beyond what can be readily anticipated.
The World Bank political risk insurance and Bill's EY nomination are two items of publicity that should have positive ramifications.
Previous share price closer to 80 cents was somewhat ahead of time. A harbinger however of things to come.
No "rocketing" of Anvil share price but likely strong profits in the coming months for the patient holders.
As for exploratory drilling results in targeted area/s? That is another story!!!
Cheers,
NT
AVM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
