whats worst case cash backing?, page-40

From the Bell Potter Broker report of 17th April 2012. The following is a list of AVB-Peer Copper companies as identified by Bell.

The first figure is the Market Cap of each quoted from that report, the second is the indicated market cap of each today, followed by the % change from that initial base figure.

Discovery Metals DML $703m 610 -13%
Tiger resources TGS $239m 192 -20%
Marengo Mining MGO $226m 156 -30%
Hillgrove Resources HGO $198m 96 -52%
Rex Minerals RXM $191m 164 -14%
Hot Chilli HCH $124m 92 -25%
Avanco Resources AVB $99m 67 -32%

For those statistically minded, the average fall is 27%. (Spare a thought for those poor souls at HGO with 52% fall).

Care is needed in trying to reach any definite conclusions as these are very different entities when looked at individually. However as a grouping they have suffered an average fall of 27% in the last two months.

So it suggests that probably (and since AVB has had only very good news lately) AVB has suffered a 25% fall purely due to being classed as a junior explorer not in production and maybe a further notional 5% on top to bring it to -32% because it is not quite as close to production as some in the group.... perhaps.

So it is OK to be focussed on AVB but I believe it is important to remember its SP woes are not unique. Its reduction % is close to the average of a typical grouping of similar enterprises.

It is nothing to do with the calibre of management, of which AVB is very fortunate to have an excellent chairman and MD, and support staff.