the next step, page-118

Guys,

A suggested method for valuing AVB would be a 'Sum of the Parts' (SOTP) as follows -

1. do a DCF on the Antas 12kt cu project - we have all the numbers now;
2. do an 'in situ' valuation of PB based on drill results. Give it an appropriate discount as it still early days.
3. Add a 'blue sky' element if you wish for - Antas resource extension, other Carajas tenement etc.
4. Add on the net of liquid assets less liquid liabilities.
5. Divide by shares on issue.

There is a concept on funds management of the 'marginal pricer' in the market. This is how the predominant buyer of a stock is likely to value it. Once the $12m is finalised plus the debt (remains an MOU) and we know the terms of the mining licence, then the above method will be it.

My early 'in situ' valuation remains 15-16c. When I get the chance, I will run a DCF on Antas. H/e, the market will not do so until the financing is completed, including the much agonised over US$12m equity component.

Get those spreadsheets cranking.

Chrs