Weak ASX yesterday.
Strong TSX last night in both Anvil share price and turnover.
Good points 86.
Australian institutions appear not to be interested so much in price of copper, price of silver and Anvil potential.
They have always concentrated on actual profits as announced in quarterly reports.
And reacted badly to any set back or fear factors.
To some extent there is a logic there in so much it is not the price of product that determines value of a company but it is the profit margin that is critical.
The problem is that is backward looking.
Anvil is a developing company and forward looking is more appropriate.
ASX institutions however are quick to mark Anvil valuation down for "Sovereign Risk" and for concerns about long term price of copper and silver.
It appears Canadians are more secure and are moving share prices to higher levels and stable share price on the understanding of Anvil's future and outstanding management.
They are not likely to shift buying emphasis to ASX because of two factors -
1. They compete for a limited supply of shares with Australian Institutions.
2. The turn over on the TSX is very small in comparison to TSX.
Stone Pony and Miningnut have suggested - if my memory is correct - that Kulu will have just broken even last quarter and Dikulushi drifted back a little due to mining a section of less rich ore.
My thoughts were that Kulu should have produced a strong surge in profits having been operational for the full period.
If profits are below expectation Australian institutions will mark Anvil share price down accordingly.
This may be what happened yesterday as "unofficial" last quarter statistics may be at their disposal.
Canadians appear not to be so inclined.
Arbitrage of course is a real possibility.
Five cents difference between ASX and TSX is a significant percentage.
Would be surprised if someone at the coal face isn't ready to capitalise on this,
The bottom line is the TSX is in the lead now and will hold ASX Anvil making share prices in both places similar.
An interesting nexus.
Miningnut has posted some items of interest regarding imminent resource upgrades due to exploratory drilling, etc.
TSX may take notice and revalue Anvil accordingly.
ASX will obviously follow.
Hopefully resource upgrades and new fields will keep Anvil share price strong.
Increasing profits as Kulu kicks in would certainly push the share price.
The next "radical" will be impending profits from a new mine - Mutoshi.
But that is some time away.
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