AVB 0.00% 16.5¢ avanco resources limited

Kalenn, A delay in the start of a project delays revenue to the...

  1. 6,689 Posts.
    lightbulb Created with Sketch. 226
    Kalenn,

    A delay in the start of a project delays revenue to the owner. Every project has a start and finish date. The owner factors in the finish date when negotiating supply contracts. It is not irrational, it is real. Every month without an operating mine means another month without $7 million of revenue to AVB.

    Let's say for arguments sake, we got the bank finance approved in June last year. We should be by all accounts have an operating mine by now, be it with a Trial Mining Licence. Instead of earning $7 million per month and making a profit, we are currently making a loss.

    Didn't we hear a couple of years ago that we would have Stage 1 operational mid 2014?
    Ok I won't be too irrational and be too critical. There have been various reasons why we are where we are.

    My point is with each passing month, the above argument becomes more and more valid.

    Perhaps my frustration comes more from the lack of news on Stages 2 & 3. At least while we wait for the FML, we could be using the last CR as intended. That is infill drilling of Stage 2 and exploring Stage 3. I can't imagine that any of this is happening without an announcement so it is probably not happening.

    One reason could be that we need to keep most of this money in reserve or to spend on Stage 1 until the bank deal is signed. Perhaps Appian made the FML a condition of taking up the CR.

    Then there is the Ore Reserve. Is the Ore Reserve being held back from releasing and what is the reasoning?

    I await the Q2 report with bated breath.
 
watchlist Created with Sketch. Add AVB (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.