the copper story, page-4

Good article Kingkev. Especially if you dig into what it means.

According to Thompson Reuters the average world cash operating cost is $1.60 per pound (taken from the above report). If we add 50% to this figure to allow for non cash costs, this means approximately $2.40 per pound and rising. AVB with a cash cost of $1 on stage 1 equates approximately to $1.50 total costs. This stands up extraordinarily well to the world average of $2.40. It means when others have to consider closing mines if the copper price drops below average world cost AVB will still be making a tidy profit. It is one of the major reasons why I invest in AVB. They are as close to recession proof as one can get. Of course if the copper price did get down around $3 some businesses would go under which would reduce supply.

The above is also why I believe AVB will not have a problem in obtaining finance. Investment banks, National pension funds, royalty streamers, commodities houses etc are all looking for the right business opportunities. AVB with its copper rich, clean deposits and low cost of production will stand out amongst those deals going across peoples desks. All in my opinion of course but why I think the probability of a cap raising is about 2% and why I think the constant raising of the issue is suss.

Also in the press this morning...RIO ASX release...

"At 9.30 pm local time on 10 April 2013, Kennecott Utah Copper’s Bingham Canyon Mine experienced a slide along a geotechnical fault line of its north eastern wall. Movement on the north eastern wall had accelerated in recent weeks and pre-emptive measures were taken to relocate facilities and roads prior to the slide. All employees are safe and
accounted for. Mine operations are currently suspended while experts assess the extent of the slide and
impact on operations"

Supply slows again :) By the time AVB have their stage 2 mine up and running the world could be in serious shortfall due to the current capital expenditure cutbacks...a lovely cyclical industry.