when are drilling results due?, page-16

It may well be a dry season operation....but they only intend to mine "out of pit" 10,000t of ore in years one and two of the operation.

- 10,000t that's a little over an olympic swimming pool worth (55m long x 25m wide x 2.5m deep)...3 tons per each cubic metre is the standard weight measurement for ore.....comes to 10,000t.

Obviously the ore has been discovered in a narrow trench like formation (BUT at surface).. very simple stuff and with low amounts of ore involved to be mined/moved. It certainly not going to be a 12 month, year long slog to generate likely forecast profits.

How long will it take...one month, two months, three months ? (what is optimum resourcing for the project)....has not been disclosed by the company.....10,000t is really very little ore.

AVB has indicated in that 8 Feb disclosute, they are looking at increasing tonnages.

--------------
10,000 t will need to be trucked in bags, to the Brazil smelter on the coast...or even to China destination. Probably about 300 round trips..(my words)...but wet weather should not be such an issue for tranport of the ore, on good quality highways that exist to the the Brazil coast.

___________________________________________

Its an $8m market cap....because of the small market cap, company overs high leverage to spot copper price movements.
Copper up 10% this week.....means extra revenues of $1.5m to the company.


I need to specifically back up forward earnings forecasts made on these posts.

So once again...if we refer to the 8 Feb company feasibility disclosures...AVB say they will have an operating profit (cum cash flow) of US$4.5M

...but that figure is based on copper spot of US$2.50 lb......should we indulge (like every other trader/poster does), and use Fridays spot of US$3.17lb....an extra A$4 m kicks to the bottom line as revenue/profit....less tax.

NOTE: AVB are carrying $5m in tax loses....excludes likely gold credits.

The original US$4.5m forecast cum cash flow, plus increased copper spot....puts EPS in year one at 1.9 cents verse Fridays share price of 1.6 cents.