AVL is progressing commendably on course - competent management...

AVL is progressing commendably on course - competent management is very evident.

Transport costs have been well managed and will reduce with ---

1. Ore depth - lower levels more concentrated.

2. Reduced smelting costs - on going negotiation.

3. Commencement of spiral plant. Imminent.

Longer term -- 1994 should see the commencement of Stage 2 which will have a revolutionary effect on economics/ profits.


financing will certainly be obtained without share dilution - a topic brought up recently in HC posts.

Those who hold AVL should remain patient.
Those interested may find the next two months will be a great opportunity to accumulate or make a position.

Adroit and impressively capable Management and the nature of the resources suggest that AVL will have outstanding growth over a medium - long term.

Those into specs and day trading might wish to avoid.

Present undervaluation of share price - likely to continue for some time is possibly the result of --

1. General market malaise.

2. CBA has obviously obtained holding limit as for policy and withdrawn from accumulating.

3. Lack of recognition by market - Will take a long time
to achieve respect due. "Fair - enuff"!

4. The red herring of perceived political risk. Becoming less and less justifyable.

5. Lack of funds by market speculators and competing opportunities in a market with many opportunities at such low levels.

My belief is that the patient will be rewarded -- eventually.

Cheers

NT