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AAZ Anglo Asian Mining Plc

59.00
2.00 (3.51%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Anglo Asian Mining Plc LSE:AAZ London Ordinary Share GB00B0C18177 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  2.00 3.51% 59.00 54.00 59.00 57.00 56.50 57.00 171,210 16:35:25
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Miscellaneous Metal Ores,nec 84.72M 3.66M 0.0320 17.66 64.55M
Anglo Asian Mining Plc is listed in the Miscellaneous Metal Ores sector of the London Stock Exchange with ticker AAZ. The last closing price for Anglo Asian Mining was 57p. Over the last year, Anglo Asian Mining shares have traded in a share price range of 36.50p to 122.50p.

Anglo Asian Mining currently has 114,242,024 shares in issue. The market capitalisation of Anglo Asian Mining is £64.55 million. Anglo Asian Mining has a price to earnings ratio (PE ratio) of 17.66.

Anglo Asian Mining Share Discussion Threads

Showing 19751 to 19774 of 143300 messages
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DateSubjectAuthorDiscuss
05/10/2015
07:05
Informative post Mattjos but in using $750 as your cost you are missing Capex and exploration costs and the impact of the Govt Profit share. So whilst I think the loans will take much longer to repay than you suggest the general direction of your argument looks sound. Although I have been out of this stock for a while the valuation appears compelling and the risks are declining.
boros10
05/10/2015
06:56
5.75p open.
brasso3
04/10/2015
15:45
Good post Matt. I hope you do not mind but I shared it on LSE.
brasso3
03/10/2015
23:43
H1 produced 35,938oz Au, spread over 181 days = 198oz/day ave.

From the HY results: Production 1/1/15 - 13/9/15 was 50,779oz
50,779-35,938 = 14,841oz produced 1/7/15 to 13/9/15
That also equates to 198oz Au per day over the 75 days so, that seems a reasonable average daily run rate to presume for the remainder of the year.

14/9/15 to 31/12/15 = 109 days
109 x 198oz = 21,582oz
50,779 + 21,582 = 72,361oz for the FY

Pro-Rata, for Q3 it looks like it will be circa: ((14,841+(17*198))= 18,207oz

So, I don't think they will quite beat their previous record as flotation is not due to start until after the Q end.

Yes, I appreciate the Heaps will drop off once the weather closes in thus affecting Q4 but, we'll have the Flotation plant to help offset that.
It seems they first plan to run the flotation plant solely on the tailings from the Agitation plant. This should increase the overall Au recovery rate and significantly increase the Cu production. By starting it up this way they can ensure the process is working correctly without incurring any additional costs of having to run the grinding mills.
At what point they start processing the stacked sulphide ore remains to be confirmed .. presumably once they are happy with the performance of the circuit from the conditioning tanks onwards.

Flotation is supposed to help them increase the recovery rate of the Au & also the Cu.
They have said they are targeting an additional 5,000oz from the flotation for the FY. Spread over the 92 days of 1/10/15 to 31/12/15 that would be 54oz per day .. a 27% increase giving ave. daily combined output of 198+54=252oz / day.

If that is achieved & can be maintained across a FY, that gives a FY production target of 91,980oz Au with Copper concentrate in the region of 5,500t

Knock off 10% for holidays and down time & FY 2016 should be 83koz Au + 5,000t Cu concentrate.

83,000 * (1,100-750) = $29m
5,000 * $2,000 = $10m

(There is one factor though that we cannot yet predict ... if Flotation increases recoveries of Au & Cu from the Agitation Plant then, to what extent will it reduce output from the SART plant? The SART plant did run before Agitation was introduced so I assume it still has a role to play using the liquids from the Heap leaches but, from memory, I believe the SART plant had a capacity greater than the heap leaches alone could supply).

Anyway, keep up those sort of figures for 18 months and the debt will be virtually gone in Spring 2017 & this could have EPS of 15-17c (10-11p)
On a trailing PE of 7-10 that would be 70-110p share price target

I've made no allowance for the silver and (we believe) future Zn and/or Mo output or, for any exploration / expansion upside.

That seems a decent risk/reward balance given the current share price of 5.5p to buy & still leaves the door open for any upside should fiat currencies & global economies in general really begin to fall apart and gold regains its safe-haven attraction, thus propelling it above the $1,100 base-case.
Although this is operational in an emerging market, it has a natural currency hedge with local input costs in AZN and output in US$.

mattjos
03/10/2015
15:49
Sorry the wording could have been better!

I mean the impact of the floation plant to be fully reflected in the price. The hard part is now done and they understand the mine and can move on to get the other sites progressed.

They have 6 months worth of stock piled ore to throw through the plant which we were told should produce around 5000oz of gold a quarter. The costs will be minimal for the first 6 months. I recall $100 an ounce mentioned by the company. The next 6 months therefore will produce

10000 x ($1100 - $100) = $10m alone in profit excluding copper. A remarkable investment by the company and will pay for itself in 3 - 6 months.

brasso3
03/10/2015
15:38
what do you call fully reflected?
jbe81
03/10/2015
14:00
I think it will be a repeat of 2010/2011 now so it will take approx. 6 months to get fully reflected in the price. Mid 2016 we will be looking at a different company as long as gold is above $1100.
brasso3
03/10/2015
12:35
The Behre Dolbear report always envisaged flotation as the primary extraction process for the Copper.
AAZ have really done well, to date, having started with Heap Leach then added the SART processing (remember that was a world first) then added the Agitation & the Knelson Concentrator.
Now we have finally got the Flotation Plant that the poly-metallic ore always required in terms of maximising the production.
OK, its come perhaps 12 months later than we may have ideally wanted ie. in a perfect world it would have been there once they got down to the Sulphide ore but, those 12 months have not been wasted.
Critically, they have continued to gain understanding of the Gedabek ore body and have stockpiled the Sulphide ore ready for processing through flotation, they have found ways to use ammonia rather than cyanide to reduce processing costs, bought Gosha & Ghadir into production, identified Gedabek North as the next target and upgraded the reed bed and the walls of the dam.
Yes, it has all consumed cash and they have a significant level of debt to service and pay down but, now we are past the peak in CAPEX the increased resultant cash-flow coupled with the way the PSA operates should enable them to pay off the debt much, much faster than most causal observers might think possible. The regular updates on debt reduction through 2016 should see the Mkt Cap rapidly appreciate back to the EV for starters and then on a forward multiple of profits.
Its going to be really very interesting to see, in parallel, how the next phase of the expansion strategy is expressed thru 2016 & 17

mattjos
03/10/2015
10:42
Looks like AAZ management are ready to start promoting this and shouting from the hills. Excellent write up and re-iterates what most on here have been thinking for several months. The floatation plant is going to be a game changer. I will be dipping my toes in again on monday morning.
brasso3
03/10/2015
10:34
  
ferries5
03/10/2015
10:32
Anglo Asian’s Gedabek reinvigoration is now complete

“Based on new drilling - on surface drilling, on deep drilling - it was established that this was actually a polymetallic mine, and so a new mine plan was developed.”

That’s the clear underlying message presented by Mehrdad Etemad, as he outlines specific improvements the company has been making on site at its Gedabek project in Azerbaijan.

“We started operating our agitation plant there in 2013,” he says. “The first three months were great, but then we ran into mineralogy issues.”

It wasn’t that the plant couldn’t produce the gold that was required of it, but rather that in the new straitened gold pricing environment the levels of efficiency required to make the production economic were no longer being met.

A re-think was required, and at a very fundamental level.

“We started to look at our reserve estimate again,” says Etemad.

“Based on new drilling - on surface drilling, on deep drilling - it was established that this was actually a polymetallic mine, and so a new mine plan was developed.”

The plan took into account new metals: silver, and in particular, copper.

“The value of the copper turned out to be as much as the value of the gold,” says Etemad, “and that prompted us to contract for a flotation plant which is now being commissioned.”

It’s this new flotation plant which is expected to transform the company’s finances.

“It started off as a pilot plant,” says Etemad. “But at 80 tonnes per hour it’s really a full scale production plant.”

The plan for its deployment is simple.

“We expect to start full production from the flotation plant soon,” says Etemad. “The idea is to process the tailings from the agitation plant and recover most of the copper and silver and gold that’s currently left in the tailings.”

The additional operating costs for this undertaking will be fairly minimal, as the slurry will already have been crushed and milled in any case.

As it stands, the recovery rate for gold from the agitation plant stands at around 75%. But it’s not recovering any of the copper at all, except limited amounts of copper and silver in the SART plant.

The new flotation plant will take overall recoveries of gold to between 85% and 90% with recovery of substantial amounts of silver and copper. “This is really the main point,” says Etemad emphatically.

Precisely what the financial impact will be remains to be released to the public. Bill Morgan, the company’s chief financial officer, plans to sit down with analysts at UK broker share price Angel shortly after which an updated forecast for the year will be released.

But at this stage, he will say this. “The contribution from the flotation plant will be enough to return the company to profitability at current metals prices.”

That will be welcome news, given that the company was still showing losses at its last set of interims, released on 22 September.

These showed that for the six months to June Anglo Asian produced a record 35,938 ounces of gold and 689 dry metric tonnes of copper concentrate.

Cash costs per ounce of gold produced rang in at an encouraging US$736 per ounce, significantly down on the costs of US$1,014 per ounce that the company incurred in the comparable period in 2014.

Even so, losses still clocked in at just over US$4mln, and it’s this bottom line number that the new flotation plant should have the biggest impact on.

“From a cash perspective the business is holding its own,” says Morgan.

That’s clear from the increased revenue if US$41.8mln that was delivered during the period, which in turn led to a gross profit of US$1.9mln and operating cash flow before movements in working capital of US$10.7mln.

Debt is also falling.

So, all the pieces of the puzzle are falling into place. It just remains for the new flotation plant to take efficiencies and recoveries up towards that 90% mark to take the company into the black overall.

“We’ve managed to turn around substantially the business,” says Etemad.

The fruits of that work are now beginning to become apparent, and the results for the current period will make for extremely interesting reading when they come in next year.

brasso3
03/10/2015
10:25
[...] Will not allow me to post link. Article about aaz in proactive

Anglo Asian’s Gedabek reinvigoration is now complete

ferries5
03/10/2015
10:24
Not sure if this has been posted before.

[...]

ferries5
02/10/2015
20:55
The chart is starting to look like its primed for a break out. Maybe a few more trading days before a big percentage move though. I will be looking for it to close above 5.5p early next week. 5 - 8 trading days now until the Q3 results.
brasso3
02/10/2015
18:34
Ah OK it was a UT?
cyberbub
02/10/2015
18:27
Believe the 83k was the result of the auction
mattjos
02/10/2015
16:46
Another delayed buy gone through, 83k... and about 300k of buys on ISDX... given how tight it is here, the free float must be shrinking fast... will it pop next week? Touch wood... and let's hope the POG stays up...GLA NAI
cyberbub
02/10/2015
14:51
artful sods
mattjos
02/10/2015
14:46
Nice Mattjos, I hadn't noticed the ISDX buys... not huge but not bad... let's see if we get a few more before close?
cyberbub
02/10/2015
14:43
buying is being reported on the secondary market and not on the main market ... for some reason!
mattjos
02/10/2015
14:24
very similar charts:


free stock charts from uk.advfn.com

mattjos
02/10/2015
14:21
Loads of shares were bought above 6P just last week... The volume since suggests that they have not been sold for a loss... hopefully if people hold tight then they will soon be well in profit, especially if the gold price rise holds...
cyberbub
02/10/2015
13:52
possibly .. but that is not a particularly labour-intensive sector .. It is manufacturing in the USA which is really under the cosh at present.
Post 2007/8 a big part of it was re-shored to the USA away from the likes of China/Thailand/Vietnam. USA became proud once again to say "Built in the USA" & large numbers of jobs were created .. now the US$ is really much too strong and does not at all reflect the state of their economy right now, those manufacturers are finding it harder and harder to export what they make. The threat of US interest rate rises & $ return from EM's to USA is only going to make that situation worse.
The large corporates, instead of investing more in hi-tech manufacturing processes to deliver productivity improvements in the long term (so that they better compete globally)simply used surplus cash to buy their own stock back & hired part-time cheap labour to flex production .. .just as we have done mainly in the UK. It's been a labour market recovery predominantly in 'numpty-jobs'.

Now that labour is going to have to be cut free & companies will have to either go back offshore or, invest properly to achieve proper, durable productivity gains - just as the cost of capital looks like it will be going up. Too much short-termism in it all.

mattjos
02/10/2015
13:39
Mattjos, I expect shale job losses will be feeding through with the low oil prices.
celeritas
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