Anglo Asian Mining Share Discussion Threads

[ferries5] 19/1/2016 14:12

Like watching paint dry here,

And I do not think it will improve until the question of how the $10- 14 million dollars required for the flotation plant expansion will be raised and if our seller is finished yet.

[zhockey] 19/1/2016 14:04

I think the AAZ board generally do not try to get the share price up for 3 reasons:

1. They have no plans for equity raising
2. No risk of TO due to shareholder structure
3. The cost associated with ramping is not seen as necessary

Personally I am happy with this, although I can see it would be frustrating for short term holders hoping the share price will rise on a speculative basis.

Let Bill focus on keeping those costs down and the share price will take care of itself.

[cyberbub] 19/1/2016 13:57

I agree that Bill is not the most dynamic of presenters/interviewees, he is rather ponderous in my view. Why does Vaziri keep such a low profile? Does he not like publicity? Is he too busy with other interests?

[bleepy] 19/1/2016 13:38

Central Bank comments on rumors about USD rate growth in Azerbaijan



More headlines....

Rallies in Azerbaijani districts not connected with devaluation of manat

Up to 7 banks can be consolidated in Azerbaijan

It appears the manat has continued to devalue over the past weeks, perhaps Bill is awaiting further announcements concerning the manat before outlining the benefits to aaz's finances. Lower interest negotiation re loans have also been mentioned.

[red rook] 19/1/2016 13:37

Guys & Gals

I have sent my e-mail, effectively my above post verbatim, to Bill Morgan. Asked him to also bring it to the attention of Reza.

I obtained his e-mail from the Investor Presentations on 22 September 2015 at the company's website.

[e-mail]

Hope the rest of you do the same. One PI sending an e-mail will not have any effect. But if sufficient PIs phone and/or send emails regarding this issue they will have to get their collective fingers out.

Regards

[mattjos] 19/1/2016 12:42

Yup, I'd agree. They have recognised the devaluation has taken place and having been through it once, should have a reasonably good grasp as to how it will affect things this time around.
Terropol raises the point about the company being mindful of the affect such a thing has on the populous of the country they operate in & we all appreciate that but, it should have an significant impact on the company's finances and should therefore be explained more fully to the market, as per last time.

They have to report monthly, quarterly, half-yearly and yearly on all aspects of the company's performance (both to the state and to the market) so, must have a robust underlying financial model to use in this instance.

[jbe81] 19/1/2016 12:22

Good post Red Rook

[red rook] 19/1/2016 12:16

Already commented on but adding my opinion on the matter..

Why have AAz not trumpeted the recent devaluation of the Azerbaijan Manat?

The RNS was out nearly a month ago. Since then I have not seen it reported in any AAZ related news coverage. Obviously this important item, wich has fallen into the lap of AAZ, has not been picked up by the media. This has not been helped by Bill Morgan and the AAZ BOD. In the interview(s) given by Bill since the RNS came out he has not taken the opportunity to re-iterate it. He should have been shouting about it, possibly doing a jig on stage.

Lets be fair, old Bill may be a good finance director but he is not a front man able to market the company. In the current market conditions, in fact on AIM under any market conditions, news flow is crucial. It requires the same amount of attention, and detail of planning, as given to the mining operations and financial controls.

Reading up on the previous posts I also gather that there was a previous devaluation of the currency which occurred a while back, albeit at a lower rate, which was of benefit in reducing costs. Surely then, AAZ would have past experience with which to quickly evaluate this larger devaluation and give the markets a projected forecast of how this will benefit AAZ.

Bill should have been working on this, running his spread sheets, all through Christmas and New Year holidays non-stop, it was that important. Ready to wow the markets in a torrent of media appearances and interviews in the new year.

The BOD need to lift the share-price/MCap of the company from its current anemic value, especially if they want to refinance. I know people say that this depends on fundementals blah,blah.. But the deal one can make with a lender, and the terms obtained, can also be effected by the strength of your current and future share price. IMO.

Can we all e-mail the company and in particular Bill Morgan and tell him to get his finger out.

[terropol] 19/1/2016 10:13

Cyberhub, I have been holding shares in this company for 11 years now. I know the company quite well.

[brasso3] 19/1/2016 08:32

Manat down, Gold up = More AAZ profit today.

[philo124] 19/1/2016 08:08

I dont think it is an issue either. It's a long term asset so if the refinancing results in say 20m due within 2 years and 30m due within 3 to 5 years then the share price should re rate.

[mattjos] 19/1/2016 08:05

The Manat today down another 1%

[cyberbub] 19/1/2016 07:49

I think that's why they have talked of refinancing the debt - and hopefully at a lower rate... I don't see it as an issue, they have plenty of options if they are making good cash flow... companies refinance all the time...

[philo124] 19/1/2016 07:45

Interims show 20m due within 1 yr. 30m due after 1 yr- be good to know structure.
Free cash flow est $12 this yr, so is there are shortfall?

[philo124] 19/1/2016 07:29

Could somebody let us know the structure of the company's debt in terms of when repayment falls due please. TIA.

[cyberbub] 19/1/2016 00:00

Terropol, you have contacts in the company management, can you confirm?

[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?