the copper story, page-2

I agree that the copper price has an overall efect on the mining market that in turn rubs off on AVB. The increasing production costs globally is good for AVB as we are at the cheaper end of production costs. The timing of our mine also suits as we believe that in two years time demand should outstrip supply due to major projects being put on hold and slower production rates as the existing mines go deeper.

It is pleasing to see that the copper price per pound has risen 10c over the last couple of weeks. I believe that most of the bad global news is behind us now as the USA is swinging to a more positive outlook and we are accustomed to the ongoing EU dramas. It's been 5 years since the GFC and that makes us half way through the so called 10 year cycle. Generally stock markets react ahead of the future and the new highs on the USA market are a good sign that the markets are predicting a promising 5 years ahead.

No two economists can agree so my take is as good as any.