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Amara Mining Share Price - AMA

Share Name Share Symbol Market Type Share ISIN Share Description
Amara Mining LSE:AMA London Ordinary Share GB00B04M1L91 ORD 1P
  Price Change Price Change % Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00 +0.00% 10.00 10.00 10.75 10.00 9.91 9.91 216,458 16:35:17
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) RN NRN
Mining 0.0 -7.9 -5.3 - 42.02

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Date Time Title Posts
28/8/201513:09Amara with Charts & News2,864
05/11/201407:47Amara Mining share price analysis1
05/9/201413:44Reasons to BUY in Amara Mining-
03/10/201208:30Association Of Mining Analysts - News and Views2

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corrientes: Do you think for one moment that the highly reputable AMLIB would want to be associated with AMA if the company is not what it claims to be ? They'll have done their due diligence,and the company is hardly a one trick pony. To judge by the mainstream stock market and property, you might think that everything in the garden is economically rosy, but of course being pumped up by the creation of money out of thin air, not backed up by a commensurate rise in real assets or productivity. Gold shares are conversely unloved and about as 'volatile' as they come, prone to extreme highs and lows,like now. Both extremes are the products of sentiment, not of facts, but then this is the stock market. I happen to believe that the AMA share price will come good eventually because it has real assets, and I don't think you can extinguish gold as the barbaric relic which so many claim it to be.For those needing instant gratification, gold shares are not normally the place to be, and if like many, you've bought much higher up, patience is required, but timing is everything.
the count of monte_cristo: Pineapple so far you have been wrong with your predictions on the AMA share price.
rogsim: After the re-setting of a week ago, the downward trajectory of the AMA share price seems very similar to that of the previous six months. As a [stupid] holder from the 100p days, I'm wondering what the flurry of activity was all about? Who bought and who sold?
hutch_pod: Taking the MII case the npv is maybe 85p per share. Agree a share price recovery is needed to make the dilution bearable but I guess it would come if gold recovers, which also has the benefit of lifting the npv (at levels above 1250). Admittedly 1250 seems a long way off now. But one day?
pineapple1: All sounds very good and its been repeated ad infinitum by those married to gold and gold miners. However between now and then AMA will need to raise conservativiley $200m in order to construct the mine. How exactly is it going to pay for this. Its been fond of doing so with dilution as do most tiddlers before first gold pour . When they get to BFS they will require money again and they have decided to drill even more holes in the ground which will expedite this. So $200m ?????? They'll be a few shares around by that time.Investors must be potty holding this with such large amounts required in the medium term and expect to see a rising share price.(not withstanding as a caveat that somebody with the money could bid for them of course) Chart resmbles a giant H@S to me. and £60m m/cap ain t cheap considering SHG which is producing could be had at half that price. I hold neither by the way. imho
amargosa: Management have a serious addition to dilution now, despite promising they would not do it. They said they would need about $10m for the BFS, they took $20m. Now another $10m without even needing it - they clearly don't believe the share price will be higher next year, otherwise why do this extra $10m now? The truth is the management are doing what's best for the management (and the longevity of the company in their hands) rather then the current shareholders. Big, fat salaries from the boom days - why would you want that to stop with a takeover? 11yrs on from (about) a 60p float, no dividends paid and now 14p. What's the point? It's more like a shareholder-subsidised charity than a business owned by shareholders for shareholders.
hutch_pod: Yeah I thought the quality of the resource is protecting the current share price. Also there does seem decent upside potential even after raising capex say 25% equity, 75% debt, at least if I play with the Allenby NPV estimates from last year.
sportbilly1976: "The Options may be exercised between the third and the tenth anniversary of the Grant Date and are exercisable at a price of 24.00p per share, being the closing midmarket price on Friday 05 September 2014. " "The new grant of options ensures that the Executive Directors and senior management team are incentivised to deliver strong share price growth through the advancement of the Yaoure Gold Project..." I'm sorry, but those two sentences do not belong together... how can you incentivise people to deliver STRONG SHARE PRICE growth when the options are at the price already? Price them at 40-50p and then maybe...
kibes: Just wondering whether to buy into this but the situation is unfortunately one which seems to happen rather a lot. Company has large and very attractive assets but does not have the money to develop them. So it will either have to borrow money (not easy in the current climate), take a rich partner (who will take most of the value of the assets) or raise money from existing shareholders (which would be at a discount to the current share price and may not raise enough money anyway). Or otherwise try to sell the whole lot, probably for a very deep discount in the current climate. Does the market have any appetite for investing in brand new gold mines at the moment? I think not. I am inclined to wait and see where they think they are going to get the money from before buying.
amargosa: Amara Mining's trusty cash cow, the Kalsaka gold mine, didn't quite deliver to expectations in 2012, as recently released production figures show. The cause? Unusually heavy rains in Burkina Faso which caused part of a pit wall to collapse.Back in June, Cluff - as Amara was then called - issued guidance that production during 2012 would be between 60,000 and 70,000 ounces.But it was not to be. "The rain was heavy and it came in big downbursts which caused some pit wall instability", says John McGloin, Amara's executive chairman. "The K Zone 1 pit had very good, soft ore and higher grades than we actually modelled, but that failed and we had to move onto where the ore was a bit harder. It wasn't a catastrophic failure, but rather an issue for scheduling and meeting our numbers." Rather than mining the soft ore from the K Zone 1 pit, the company had to switch to mining hard ores that were originally scheduled for mining in 2013. And, as John explains, one result of that was that leaching times increased, since the softer ore takes around three months to leach at Kalsaka, whereas the harder rock takes four months.As a result, come November when the third quarter results were released, the guidance was pared back to between 53,000 and 57,000 ounces.And in results for the full year, released on 22nd January, Amara duly announced production of just over 53,500 ounces from Kalsaka. Costs have not yet been revealed, but at this stage it looks as though they'll come in, as guided, at around US$960 an ounce. So all in all, not as good a result as might have been hoped for, but not a disastrous one either. Kalsaka remained highly cash generative, and at the year-end, including a US$20 million facility made available by Samsung, Amara had US$36 million in the bank. The question is: what happens now? The mine life at Kalsaka is virtually at an end, and the resultant production shortfall will be met by mining from the nearby Sega deposit, from where crushed ore will be trucked to the existing Kalsaka plant for processing. It's a pretty straightforward proposition. Indeed, in terms of mining, says John, "it'll be about as simple as it gets. The processing is the same. It's really just a quarrying operation". Even so, he concedes that meeting this year's production guidance of between 50,000 and 60,000 ounces could be a challenge, because in order for Sega to proceed it needs a sign off from the Burkinabe government. Not much doubt that it will come, but will it come in time for Amara to start trucking ore in mid-2013 as planned? "We prefer the odds on Mwana", said one broker churlishly, without saying why. But John remains upbeat. "We need the government to sign off on the environmental permitting and the mining licence", he says. "We're anticipating that around the middle of the year." And if there is any slippage, there's a back-up plan. At Kalsaka the company has delineated two extra months' worth of lower grade material, and has also put plans in place to process transitional ore. It'll be a limited stopgap, but potentially a very handy one.In the meantime, it's full steam ahead with Amara's other two projects, the two million ounce Baomahun project in Sierra Leone, and the former producer in Cote D'Ivoire once known as Angovia, but now re-branded as Yaoure."We should have a feasibility study done on Yaoure by the end of February", says John. "But it's difficult to know what the market will think about it. This isn't going to be the highest grade thing in the world - it'll be one-to-two grams." Indeed, when it was called Angovia, the mine operated as a small oxide producer and barely washed its face.But a move into the sulphides beneath ought to provide enough scale for it to really fly. Because, if the grade is modest, the logistics are excellent, and that's where the real attractions lie. "We are five kilometres away from a 150 megawatt hydroelectric dam", says John. "And we're close to the political capital. So the only capex will be on admin blocks and the plant, and on opex, when it was Angovia we were paying just US5˘ a kilowatt hour. The challenge is whether you bulk mine this target. We'll have to see if the metallurgy stacks up. But there is also the potential to high grade it by just targeting the shear zones." Back in December, when he was hosting a well-attended investor lunch at Mines & Money in London, John told Minesite that it was actually the potential for Yaoure that had attracted him into accepting Algy Cluff's offer to become chairman. Two months on, and he hasn't changed his mind. "I think it's a pretty exciting project", he says. "The drilling finished at the end of last year and 95 per cent of the assays we're back by the end of December. We're now stepping back and banging in a few infill holes where there's good grade and thickness. So after the new resource in February there'll potentially be a further update at the end of H1 or the beginning of H2. The next step will be to look at the metallurgy and look at the orebody and see where we can put in extra holes to add value." All of which means there should be plenty of newsflow out of Yaoure in the next few months, some of which may perk up investors in what has been a pretty sluggish market for Amara of late. Down at the current 52.5p the shares are trading at close to three year lows, and it's not because there was a poor quarterly performance from Kalsaka. Two problems ail Amara. The first is simple enough: gold juniors are out of fashion. Take Kirkland Lake for example – also a company with a good track record of production, but which has hit a few glitches of late. Kirkland's share price graph mirrors Amara's almost to a tee. The pure explorers are the same – trading at three year lows. Why is this? Because the relentless upward movement in the gold price stalled in the early part of last year, and in spite of the brief fillip of a third round of quantitative easing from the US in the autumn, there are no immediate signs of a further lift any time soon. Result: risk-off investors have moved their money away from junior golds, and in particular from companies that have big development projects on the go: witness Aureus, Volta, Hummingbird and others. Which brings us to the second reason there hasn't been as much traction in Amara's share as there might otherwise have been: worries about financing Baomahun. In a way, John argues, these worries are completely unfounded. The relationship with Samsung was predicated around the development of Baomahun, and discussions are ongoing for Samsung to provide more than half of the ball-park US$200 million that will be needed. "The smaller facility was simply to build a relationship and demonstrate the mechanics", says John. "But the whole impetus of it was always about financing Baomahun." And, with the likely source of any debt component already established, John reckons investors and potential investors are sitting in a more comfortable position than they would have been had the equity component come first. "If you put up equity and you knew there was debt coming and you didn't know how much is going to be given up in a hedge, you'd be vulnerable", he says. Especially if production falls, and the hedge book remains the same. But there's no hedging under the envisaged deal with Samsung. Rather, it's more of a straight off-take deal. Samsung will take gold at a discount to market until the principal is repaid and the facility is wound up. It's as simple as that. But at what price will Amara be able to raise the remaining equity component? Therein lies a question. A full feasibility study for Baomahun will be released by the end of June, at which point the overall economic potential of the project, which markets have waited so patiently for, will become clear. In the meantime there will have been news both from Yaoure and Sega which may well generate positive sentiment. And then there's the gold price. Consensus is that gold will average over US$1,700 this year, so any concern about a fall in gold wiping out further value are likely to prove unfounded. But how strong will any upward momentum be, and will it pull the junior gold sector up with it? There are two answers to that. The first is that the upward momentum probably won't be that strong, certainly not in the first half of the year. But the second is that gold juniors are already heavily discounted when compared to the existing gold price, and it may only be a matter of time before markets pick up on this and a sector re-rating occurs. If it happens within the next six or seven months, the timing could suit John very nicely. It'll be a fascinating year

Amara Mining Most Recent Trade

Trade Type Trade Size Trade Price Trade Date Trade Time Currency
UT 13,500 10.00 28 Aug 2015 16:35:17 GBX

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