this buying is relentless, page-4

I really do think some in this forum need to do a little more research about the Blackrock fund that has bought into AVB.

I am not saying BR are not responsible for lending out shares, or in any other way contributing to the accumulation activities. However, I believe it is not Blackrock at play here but I have no way of knowing for sure, they could be involved. Ultimately, I have no doubt that they are here to make money via their royalties streaming deal. With stage 2 and/or 3 running Blackrock are going to make a very handsome return on their investment. It is why they wanted an acceleration on the feasibility for stage 2 and the exploration work to resume. It is why they invested more in AVB. If there motive was other than this I would argue their actions would be different as well.

Copper is up at $3.34 this morning...

Blackrock's royalties stream is approximately 2.1% of cash flow. With stage 2 running and AVB mining 40,000 tonnes per annum the cash flow will be US$326 million at current commodity prices. US$6.74 million per year to Blackrock in royalties plus a further US$11.4 million in earnings from their 70,666,667 share holding.

So Blackrock's return will be approximately US$18 million per annum based on current commodity prices.
I don't think it takes too much imagination to see where the main game is for Blackrock

The expected earnings per share at 40,000 tonnes will be approximately A$0.18c, once again based on this mornings rates. 18c multiplied by your holding size???

Once again, I don't believe this is Blackrock's work but even if it is there would (IMO) be only one reason for it, to accumulate more shares. Personally, I think it is Bell Potter or another trading house doing the accumulation and I think their actions are transparent. Does anyone really think these low prices will be maintained with reserves, Mining Licence and finance in place? If you do there are plenty of buyers waiting there for you. :)


PS Vespasian, could you contact me via email...