Anglo Asian Mining Share Discussion Threads

[terropol] 18/1/2016 23:19

Zhockey, I did take note of what Bill said. I think it could have been in error.

[philo124] 18/1/2016 21:35

That will help but I would be very happy if management can follow through in 2016
with the progress made last year without any drama or incidents.

[zhockey] 18/1/2016 20:27

IMO the only thing that will move this is a turn in AU/Cu prices.

[jeanesy] 18/1/2016 20:17

Still waiting for the manat calculations ... hopefully soon. Then im sure this will get noticed.

[zhockey] 18/1/2016 19:47

I know the reserve levels, it's just that Bill mentioned the Au production levels will be maintained or slightly better for 2 - 3 years. Surprised no one picked up on this and asked him to clarify at the Q&A.

Perhaps they see Cu production ramping up and Au dropping off over time?

[cyberbub] 18/1/2016 17:34

Barrick and Newmont up today.I agree that what might be deterring investors here is the debt/earnings ratio. Say net earnings are $12M, debt is $48M, so that's a 4:1 ratio. That is likely to be off putting to many investors, particularly with present market circs. Many people believe that a ratio over 3 starts to become too risky. Nevertheless, as long as the gold price stays around these levels, AAZ's debt is perfectly serviceable and capital can be incrementally paid off. If the company can get the ratio under 3 (e.g. paying off $8-9M, plus getting a lower interest rate, and driving more profit by reducing dollar-cost of production) then I think we could start to see investors returning.GLA NAI

[brasso3] 18/1/2016 16:46

The reserves from just Gedebek cover a mine life of 10 years.

[zhockey] 18/1/2016 15:30

I remember Bob saying in a recent interview they could produce gold for two more years, does anyone know what he was talking about as the reserve numbers are much higher than that?

[mattjos] 18/1/2016 10:50

The Manat is down another 1% today against the US$ ... now at 1.58.
Every little will help

[jbe81] 18/1/2016 09:28

Does it look like this move up with some buying on level 2 to you, Matt? Gold going over $1100 should be the catalyst

[mattjos] 18/1/2016 00:22

Gold broken out of a bull flag on the 30min chart this evening .. Should see us over $1100 again shortly.Plenty of global reasons why more folk will be persuaded to buy it.If you look at the gold chart in a currency other than US$, they are all showing the price over the key moving averages as folk seek a means of protecting their wealth in their own currency

[mattjos] 18/1/2016 00:18

Zhockey, the reserves is something that I believe exploration will continue to add to. The acreage they have. They've barely scratched the surface of it really.So many reports of the state being minded to diversify the economy away from oil. These guys are the only gold mining company in the country. Wont be long before they are awarded something else. The experience, knowledge & human resources that Reza has assembled to date in the company are valuable

[philo124] 17/1/2016 22:46

Surely the enterprise value will increase.

[cyberbub] 17/1/2016 21:56

There are still several years worth of reserves left, and they are opening the Gadir underground mine further, with its very high grades. Almost 8g/t is high in any terms.DYOR

[zhockey] 17/1/2016 21:38

Mattjos,

When you equate paying down of debt with a Mcap increase due to I assume the enterprise value remaining the same, how do you factor in the consumption of the reserves?

[mattjos] 17/1/2016 17:34

Jeanesy, absent a near-term big run in gold, I suspect most will be deciding to keep their powder dry now.AAZ is now extremely well set to make significant in-roads into the debt this year. 25% at least .. Circa $12m.That is £8m at least that we should see added to the mkt cap of the company ... More than doubling where we stand now.As the debt is reduced so the market confidence in the company should increase and then valuation metrics such as NAV wil become more likely ... That's more like 20p/share.The new plant is clearly already having a very positive impact on both rate of production & cost of production.Metal prices generally are under pressure & may not be exactly what the company may have anticipated 18 months ago but, to level that up, we have the depreciation of the Manat .. The net effect is same as higher metal prices.I'd suggest we're under starters orders right now & the firing pistol likely to be the first financial evidence of debt reduction occuring

[jeanesy] 17/1/2016 16:43

I wonder when we will get the update about the cost savings due to the depreciation in manat? Perhaps then we will see some sort of positive response in the share price. Yes we are in difficult times and yes gold producers are totally unloved but surely these are seriously undervalued in anyone's book... unless i am missing something?? if i am can someone please tell me.

[philo124] 16/1/2016 18:26

Sure, but they have had a lot on their plate and the results will be what they will be, historic. Would rather see their 2016 budget and cash flow forecast.

[cyberbub] 16/1/2016 09:29

I see that a lot of the major-scale producers have been ticking up in recent days. Let's hope we start to feel that effect soon too! $8M market cap is ridiculous, even considering the substantial debt.I hope also that they get the results out faster than last year, late May is poor. There seems no reason for them to take 5 months to prepare.NAI

[zhockey] 15/1/2016 20:50

In that interview he says that AAZ is already a mid tier producer.

[philo124] 15/1/2016 20:49

Gold up $1, bit of icing on today's posts.

[cyberbub] 15/1/2016 19:54

On Target, it's just a phrase, I don't think there is a scientific definition as such. Personally if we start heading towards 100k gold plus all our silver and copper, zinc etc, which count as 'gold equivalent' then I would not be surprised to see us being at an equivalent of 150k oz within a couple of years. That would be pretty good even if it's more towards the lower end of 'mid tier'.

[mattjos] 15/1/2016 19:05

It's a cracking interview. Solid & conservative.The drip, drip, drip message will start to percolate eventually