Avion Gold Corp AVGCF

RE: RE: RE: The numbers will soon speak the truth

[art27]

"To achieve its stated goal of producing 200,000 ounces of Au by 2012Avion needs to raise additional capital through debt financing orthrough raising equities"

Lets say they need more $ on top of their current cash flow to achieve their goal of 200,000k oz/a production and they dilute the float to, say, 400mil shares AND produce 200k oz as planned.

They state on their website their cost of production per oz will be $450 by the time they reach 100k oz/a but lets say it stays the same ($450oz) with production of 200k oz/a

With cash cost $450, POG $1100, 400mil share float, 200k oz/a production our SP would be theoretically worth $3.25
With POG $1300 our SP would be worth $4.25

So, under the condition that Avion WILL reach the annual production of 200,000 oz AND maintains that production, I have no problem with more dilution or debt financing. The POG is so profitable for us at the moment (and it will go much higher) that it doesn't really matter if we dilute another 60mil shares. At 200k oz annual production and POG $1100+ Avion will be making so much cash that we can buy shares back if it still trades at 60 cents by then LOL

Art27