Australia's largest stock trading and investment forum Australia's #1 stock forum

AVB

Click for more information

0.00%

16.5¢ avanco resources limited

Ann: Trading Halt-AVB.AX, page-236

First 236 Last

Share
Profile

Follow
Kalenn

7,938 Posts.

1610

13/09/16

17:48

Post #: 19128365
Share

Originally posted by pejudi ↑

As they said that the copper will be shortage and price is going to $3, i think its realistic if we can achieve at least average copper price of $2.2 over the next 7 years.

AISC $1.61 /LB

12KT CU = 26.45M LB produced
LOM 7 yrs
assuming $2.2 per LB revenue
total profit over LOM is 7 x 26.45 x (2.2-1.61) = $111.09M
assuming 30% tax, profit over LOM is reduced to US$77.8M

AISC is including recovering of mine development cost which is USD $76.6M.
cash on hand USD$21M

so if we can achieve average copper price of $2.2/LB, in 7 years if AN operating as expected and no additional improvement the company should have $77.8M + $76.6M + $21M = USD$175M = AUD 233.8M (AUD / USD of 0.75)

from the current market cap of AUD 122.8M to $233.8M (assuming the company only have cash) after 7 years = ~9.6% compounding annual return.

Expand

Also, likely tax rate 16% once we have to start paying which won't be for a while as we deduct multiple mines.

AVB Price at posting: 4.8¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MTM

Australian Rare Earths bullish on early-stage uranium potential at Overland, SA

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 23 more messages in this thread...

First 236 Last

Add AVB (ASX) to my watchlist