strong and stronger

  1. NT
    1,708 Posts.
    AVL is progressing commendably on course - competent management is very evident.

    Transport costs have been well managed and will reduce with ---

    1. Ore depth - lower levels more concentrated.

    2. Reduced smelting costs - on going negotiation.

    3. Commencement of spiral plant. Imminent.

    Longer term -- 1994 should see the commencement of Stage 2 which will have a revolutionary effect on economics/ profits.

    financing will certainly be obtained without share dilution - a topic brought up recently in HC posts.

    Those who hold AVL should remain patient.
    Those interested may find the next two months will be a great opportunity to accumulate or make a position.

    Adroit and impressively capable Management and the nature of the resources suggest that AVL will have outstanding growth over a medium - long term.

    Those into specs and day trading might wish to avoid.

    Present undervaluation of share price - likely to continue for some time is possibly the result of --

    1. General market malaise.

    2. CBA has obviously obtained holding limit as for policy and withdrawn from accumulating.

    3. Lack of recognition by market - Will take a long time
    to achieve respect due. "Fair - enuff"!

    4. The red herring of perceived political risk. Becoming less and less justifyable.

    5. Lack of funds by market speculators and competing opportunities in a market with many opportunities at such low levels.

    My belief is that the patient will be rewarded -- eventually.


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