Pros • 1 million Tonnes of Copper with added bonus of Gold (declining resource) • High Grade near Surface, great strip ratio • Cash in Bank (~$18million) • Benefits from a falling $AUD (Profit in $USD) • Close to Infrastructure (Power, Water, Airport) • Located in Brazil (Cheap Labour, Less Red Tape ,Less Tax) • Feasibility study confirms it will be one of the lowers cost producers in the world • Has Glencore/Xstrata and Blackrock as Corner stone investors • Pre-arranged Finance of $70 million from a government run bank & Blackrock • Has more In ground values than SIR, CDU, Insert X here, but a much smaller MC but are ahead in the production curve. • Already started Procurement on Long Lead Items • Some very astute Management who have built mines before and dealt with government. • China still growing (More sustainably and US/Europe improving) • 12 months to Production • EPS ~4 cents a share based on current figures apply a PE ration of 8 to 12 based on growth and Stage 2 and 3 (~0.32c to 0.48c Target)
Cons • 1.4 billion shares on offer (Prone to Traders) • Located in Brazil (Which is actually a positive to project economics) • The stock market might crush like it did in 1929, 1987 and 2008.
Thats probably only the tip of the iceberg, lets call it base of the mountain I think thats more relevant!!
Name me a better specie on the ASX I dare you?
AVB Price at posting:
7.1¢ Sentiment: LT Buy Disclosure: Held