Anglo Asian Mining Share Discussion Threads

[goldfund] 21/12/2015 07:59

"The central bank of Azerbaijan has abandoned its currency peg and floated the manat. Immediately, the US dollar soared 48 per cent against the currency"
All our costs go down by 48%!!!

[jeanesy2] 19/12/2015 10:19

Sadly i agree there are too many unanswered questions at the moment for the market to be interested. The pog will not help either until the picture is clearer. This may even drift a lit lower in the short term.

[ferries5] 19/12/2015 09:45

One of the reasons for the low production last month could be, That they had to adjust the mixture of ore for the agitation plant , so the flotation could produce a sellable product. ( No Gadir ore being used because of the zinc production.?)

I do not think we will here much about copper production until February at the least, they only really started commercial production end of November so they need a few months to wind up production.

But in the January statement I think Reza Vazira has a lot of explaining to do. He needs to tell us his business plan. Start giving us some figures, he has been very coy about those the last year.
What does he mean when he says he wants to expand the flotation plant at a cost of $10 to $15 million, Is that so he can get the Gadir ore through the flotation plant or is there more to it. Surely the mineralisation should have been checked before they built the plant. (though. to be fair it does change)

As for raising the money for the the expansion, that is going to be difficult. Azerbaijan banks are nursing big losses due to the manat devaluation. equity fund raise, Maybe as a last resort, it would hurt Vazira more than anyone.
They must get back into profit inclusive of all debt costs, If they can do that, pay down some debt , keep there debt ceiling at $52 million and use profits for expansion.
Or renegotiate the 12.5% of production that the Government take, even if it is only for a year, it is in there long term interests as wel to a certain degree.
Until these questions are answered the market does not want to know. So many ifs, Price of Gold etc..

[jeanesy2] 18/12/2015 19:49

The market has absorbed yet another 100k sale. I thought nov production figure was down. We really need some more info re copper but will have to wait until jan I suppose.

[brasso3] 18/12/2015 12:43

The 15th is a Friday so expect it will be issued by then. The Azerbaijan press sometimes have the production numbers by the 15th of each month.

[wrighty46] 18/12/2015 12:30

14th January released this year.

[captain_crash_and_burn] 18/12/2015 12:10

FY report for YE 2015 will be very interesting, surely it won't come that early will it Brasso?

[brasso3] 18/12/2015 10:16

They will issue the 2015 FY report before the 15th Jnauary.

[ferries5] 18/12/2015 09:10

I would think it will be Jan or Feb before you get any info on copper production.

[mattjos] 18/12/2015 08:59

Still nothing about the copper ... But, they are not obligated to report that monthly.

[ferries5] 18/12/2015 08:49

4890. troy oz for Nov

[mattjos] 17/12/2015 19:53

no data in that report on the Copper output so, actually rather meaningless. If we are still to be seen as a Gold miner then, one surely needs to say that Gold production was xx & Gold equivalent production (from Copper & Silver) was yy.

I said several months ago that the company would need to alter the way it reports its revenues and the make-up thereof. I suggested then that split according to processing methodology would be more appropriate but, now believe this would be better at the headline level

Gold Production: $
Au equiv. Prodn.(Ag, Cu & Zn by-product credits net of 3rd party refining costs): $
Total Revs: $

Cost of production (in-house, per gold equivent oz): $

Gross Profit: $

then the market will become less fixated on month to month physical gold production & focus more on the true nature of how the business is evolving.

my thoughts, fwiw. I just hope they don't spend as long doing this, as they did in publicly admitting that Gedabek is not all about the Gold

[brasso3] 17/12/2015 19:45

It means November production was down on October.

[jeanesy2] 17/12/2015 19:31

Does that mean that production in November was down on last year?

[brasso3] 17/12/2015 16:42

Looks like full year will come in around 71,000 - 72,000 oz now.

Gold Only:-
71,000 x $1100 = $78.1m revenue
71,000 x ($1100 - $736) = $25.8m operating profit

With copper and silver the profits after costs should be around $29m.

[brasso3] 17/12/2015 16:39

Azerbaijan increases gold production by 21%



Azerbaijan produced 2042.8 kg of gold in January-November, 2015

2043 kg = 65684 oz

[ilostthelot] 16/12/2015 22:07

Yes Brasso I'd agree. Debt reduction and profit is what's required before a substantial rise in the Share price. Imo

[mattjos] 16/12/2015 19:09

As the flotation plant output increases, it's the Gold Equivalent production that is far more relevant than just the headline gold figure.
The company reporting mechanism needs to switch to Gold Equivalency measures (if they still wish to be pegged as a gold miner) or, forget about which element is which and just say our revs were X and our costs were Y .. How that figure 'X' is made up become an irrelevancy.
Next year we'll be producing gold, silver, copper & Zinc .. What therefore is our primary raison d'etre?

[brasso3] 16/12/2015 18:27

Normally the headline reports the production from January to that point in the year.

Last month the headline was "production up 23%" for example.

Lets wait and see tomorrow but it looks like November has not been a great month. When we had a fantastic month in October (6700oz) the share price did not go up to this suggest the market does not care about production. The market wants to see profit and debt reduction...

[on target] 16/12/2015 18:15

It could easily mean a 20% increase on last month?