Anglo Asian Mining Share Discussion Threads

[mattjos] 16/6/2016 20:27

I imagine that if we vote to leave, the summer wobble will be all about whether or not Europe actually hangs together without us & what is the ripple effect.I believe that our leaving will simply be the first domino.... Denmark, Netherlands, Poland .. These could be next to decide to leave.European banks and sovereign debts will likely more of an issue. DB looks particularly vulnerable right now.

[philo124] 16/6/2016 20:12

High volume.

[philo124] 16/6/2016 20:09

Next summer wobble after brexit will be china.

[mattjos] 16/6/2016 19:48

Great post 2Sporrans. Thanks

[jeanesy] 16/6/2016 19:43

Gold now at 1286, thats quite a big drop!! I was hoping that we might hold 1300

[jbravo2] 16/6/2016 19:32

Id say the sellers slightly edged the day. "But it's up 10%?" the crowd say.
Yeah well the MM's aren't so daft as they look. They know they'll be able to sell this stock a lot higher over the coming months.
As I've posted many times, and lots of people seem to get now, this company's fundamental financial well being is going to be unrecognisable in a years time.
We've had another day where the sellers will be lucky if they want to get hold of their shares cheaper again.
When such a strong re-rate is happening you need to be very lucky to carry that off.

[brasso3] 16/6/2016 18:10

Looking through the trades today there were not many sells. The rise today was not due to large volume but a lack of sellers.

[brasso3] 16/6/2016 18:09

Gap closed at $1297. Predictable! :)

[2sporrans] 16/6/2016 17:51

Given -ve interest rate creep is a powerful determinant of ongoing gold buying, it's worth reflecting on what's happening in what is comfortably the biggest asset class globally - bonds.
Yields are descending to surreal levels:
Today, ALL Swiss Gov't debt turned to -ve yield status; the German 10 year bonds have likewise. Japanese G-bonds are virtually all on -ve yield now.
So, a buyer [only Central banks?] of a fresh issue [just supposing]Swiss 30 year bond accepts that if they redeem [getting face value repayment] in 30 years, that they will have accrued absolutely zero income over the interim; indeed they will pay a little 'fee' for the privilege of a nominal return of their capital.
Weird, the extent of the distortion of QE and ZIRP on asset prices.

10 year Gilts now yield a paltry 1.1%pa and US 10 yr treasuries touched 1.5% this pm. Even if US Treasuries [and the US$] are taken to be at the [nominally] safest end of the asset spectrum, they don't now offer much in the way of 'low risk' nominal returns.
So, the opportunity cost of holding gold has probably never been lower, on a global scale.

Gold has broken out above key long term resistance levels today. [$1,305-1,311 band key for long term trends]so maybe there will be a further spike up before the inevitable consolidation dip.

AAZ's [~$700/oz] operating margins are fat enough to be sanguine if the POG drops $50 or even $100/oz from here; a 2016 POG average of $1,200/oz still provides $42-mn net cashflow for 70k-oz prod. [ex. copper/silver]and the prospect of rapid debt paydown.

Several others here are providing much better figures, insights etc as to AAZ's particulars; just making passing observation that the recent rises in the POG have created a fair 'headroom' for its revenue and profits prospects.
Then there's $several-mn on top from copper/silver which is, arguably, going straight to the profit line, from here [albeit in a lagged manner], with capital/plant costs already paid.

So, it's hard to argue persuasively against the case for AAZ regaining the 30p+ price range over the next several months, even if the POG pretty much tracks sideways over the prospective period.

[brasso3] 16/6/2016 17:28

Why?

Last week you said the Fed interest rate decision was already priced in at $1280 and its hit $1313 today.

I see 3 or 4 more days of gold gains personally, possibly hitting $1350. I would like to see the gap down to $1297 closed first though.

[zhockey] 16/6/2016 17:27

Looks like we'll see a pull back to about 1260 in the short term

[brasso3] 16/6/2016 17:10

16p the next obstacle for AAZ.

There is a gap on the gold chart down to $1297 though which may need to get filled first.

It would seem madness to sell AAZ in the next 7 days to to convert your shares to Sterling. Better to wait and see how the Brexit vote goes.

[scottishfield] 16/6/2016 16:33

Just in & catching up jeanesy but, yes !

[jeanesy] 16/6/2016 16:32

Great day here !

[zhockey] 16/6/2016 15:12

Looks like gold is being held back

[golla] 16/6/2016 14:35

Volume approaching 1m.bodes well.

[golla] 16/6/2016 14:30

20p could easily be reached quickly.

[jeanesy] 16/6/2016 14:01

Figures seem pretty solid to me . Hoping for strength in POG and then news on debt reduction in July. Perhaps the next news will be at the AGM on the 27th June? Still holding firm here for further gains.. please !!

[celeritas] 16/6/2016 13:53

Stock getting tight again, 11k available online.

[celeritas] 16/6/2016 13:48

ok jbravo, I did read that link a few days back, must have found it myself.

[bleepy] 16/6/2016 13:39

Topped up on news of May production figures.

Q3 will see new sag mill installed and increase throughput of floatation plant.

The new equipment recently installed at Gadir will increase recovery of high grade ore.

pog heading north as is silver and copper.

[jbe81] 16/6/2016 12:38

Looking good for a return to 40p by q3 here now, without any game changing news beforehand.

[brasso3] 16/6/2016 12:35

Comparing the above to Q1 2016:-

Production = 14,172oz
Gold price = $1164
Revenue = $14m - $15m

Revenue has increased $7m - $8m on the quarter!

[brasso3] 16/6/2016 12:28

Q2 figures should see 19,000oz of gold at an average price of $1250.

19,000 x 0.87 x ($1250 - $700) = $9.1m

With silver and copper on top of that that quart should exceed $10m in profit.

Revenues will be around $22m for gold, copper and silver.

[jaspoland] 16/6/2016 12:24

Well done AAZ. Everything now lining up nicely.