Anglo Asian Mining Share Discussion Threads

[jeanesy] 17/1/2017 18:49

Well just got in from work . Reduced Production figures not met as expected. Not sure why Zhockey is being 'got at' for saying what he thinks. We have been told that December's figures were not met because of mining grades. That does concern me as this has happened now for the last 3 months I believe. Yes debt is coming down , copper production going well, but we are classed still as a gold miner imo and reducing grades is not great news. I hope that we can show the market that we have enough gold to grow our reserves in the near future. Do I still hold .. yes .. but like zhockey i want to see more progress on the drilling/exploration before i can say that I am as confident about AAZ as i was when i made my investment over a year ago.

[zhockey] 17/1/2017 16:07

Qas, I would not disagree with you.

One must listen to the market and logically I thought this would sell off, as did the MMs. However the market rallied and that has to be respected as sentiment is a very important factor in deriving a price.

[qazwsxedc69] 17/1/2017 15:00

Zhockey - You say "out of the woods" as if we are coming from a dark place.....but for me, I see that this has 4 bagged in less than a year, so that really shouldn't be (but absolutely is) overlooked here, where some have such short time horizons.

Such a great story here, and so exciting to see the debt getting paid off so quickly. At such point the options available will increase significantly (and which point it will be time to evaluate/re-evaluate management strategy).

My own personal regret is that the share price having been so volatile I didn't have the courage of my own convictions so took some money off the table. On the plus side what I have left is now a completely free ride for me, and what a great place to be, with such a dynamic and chronically undervalued company.

[mattjos] 17/1/2017 14:55

finally Trump has signalled publicly that the US$ is too strong at this level.
That should be good for pog in the coming months.
That spike up over $1,300 on the eve of his election looks a likely trajectory for gold to move to now as the steam comes out of the US$.
Gold already up nearly 8% YTD

Having 'tweeted' that the US$ is too strong last night, its likely (given the way he seems to communicate) that this will become a message he reinforces.
Will be interesting to see how China respond with the Yuan.

Whole new way of communicating presidential policy is coming into play now and the 'traditional' media must be concerned that they are no longer ahead of the public in finding out what is on the president's mind. Arguably will make it rather more risky for the hedge funds and bankers to keep playing wit the gold price as they have ... now, one tweet from Trump could see them the wrong side of a trade.

If that reduces their influence and helps normalise price discovery in the PM market in short order, I think we should expect a continuation of the price of gold for some time to come this year.

[zhockey] 17/1/2017 13:32

So are we out of the woods yet? It has tested the 100 day SMA about 5 times now, is that bullish or bearish??

[zhockey] 17/1/2017 13:23

Well not really as they offset byproduct in the cash costs. If you count by product revenue then you have to use a higher gold cash cost.

[bsg] 17/1/2017 12:34

Is that $11,000,000 of Copper and $2,800,000 of Silver, that's the equivalent of about 11000oz of gold?

[jbravo2] 17/1/2017 12:33

Of course that was a large part.
As was the devaluation and the reduction in debt.
Some of it has been luck. Some of it hasn't. eg when gold was $1800, that was even more "lucky" for the gold miners.

Question is where is gold going to go?
Yes if it goes to 1050 again theres no way we'll hit my prediction. Therefore one could deduce I don't think its going there. Equally if it does hit $2000 my 100% gain would be hit easy.
I'm assuming it stays around 1200-1250. Anything more or less than that will see more or less than that 100% IMO.

[zhockey] 17/1/2017 12:24

Jbravo, much of last year's move was related to the gold price. FWIW I hope you are right.

[deanroberthunt] 17/1/2017 12:06

KEFI is valued at £16m and it doesn't produce anything.....

[jbravo2] 17/1/2017 12:04

Silence jbe?
Only cos theres not been much to say, but I guess I'm due a post... and I feel like posting rambling stream of consciousness...

No point cheerleading to the likes of jeanesy and zhockey. They're either not sure of the reason they're invested and therefore "nervous" despite all the info available to him (jeanesy) or playing some other agenda (zhockey).
The rest of the board is largely in the know and understands the reasons to be buying at prices which are frankly ridiculous now our debt is $35m.
Now the costs are going to be lower than ever in 2017.
Once new reserves are drilled up.
Once the flotation expands.
Once the evap plant starts working.
Blah blah blah.

We make payment 9 on the ATB loan in one month. That will leave just six. That debt line is going to shrink fast now.
Yet still people are nervous here?

People really did have a reason to be nervous about a year ago.
Gold was only just over 1050 and costs were too high.
A manat devaluation, some canny plant development an increase in PoG and some stringent controls have turned that around.
The signs were there for all to see come ISA day in 2016 but not many were aware of the company. Even some of those that were aware of AAZ were just too unsure of themselves and sat on their hands talking about significant action instead of taking part.
If they didn't know what they were doing then, they sure as hell can't be assumed to be in the know now.

Others, I think you can guess a couple of names, convinced of the value, acted.
I remain 100% convinced this will hit a new high this year. And that high will be 100% higher than the high in 2016. Of course if I'm not right I know mr hockey will be along to remind me but I shall remind him of my prediction in June 2015.
It appeared I was wrong for a long time, but it didn't stay that way. Inside my year timeline I was more than right.

So I'm never wrong? Erm no. I thought we'd get Chovdar and I think its pretty clear we're not going to. But its a bit boring making no predictions isn't it? Gives the chattering classes something to write home about

:D


Anyway, onwards and upwards here. No, not in a straight line, but up up and up.

[crazycoops] 17/1/2017 11:58

Personally, I value zhockey's perspective as it often highlights what the bears might be thinking and reminds me of the downside risk. This said, I am very excited about the upside potential of AAZ, as and when we get decent exploration news. In the meantime, the valuation is cheap as chips compared to current profitability.

[bleepy] 17/1/2017 11:54

Has anybody noticed, exploration ongoing not just at Gadir, Ugur and Bittibulag ...


Area adjacent to the current operational mine
Geological mapping was carried out over 0.7 square kilometres from which 290 outcrop samples were taken and 20 metres of follow-up trenching was carried out. In addition, two drill holes with a total of 530 metres of diamond drilling were completed.


So continuous exploration to expand existing mine site and to a depth of 530mtrs.

[zhockey] 17/1/2017 11:53

Reckless deramping? It opened up down 10% :) in any case I only posts my thoughts and not advice or "guarantees". Contrary to what some believe, my only motive is to maintain a robust a model as possible. I post my thoughts and if others challenge I can reassess if my model needs adjustment.

I see no value in a chat room where everyone just discusses the positives, I mean what is the point as they are obvious. Let's debate the challenges and how the company will overcome them.

Terrapol, I've held those shares all along and agree there is value to unlock, but having a realistic model can help prevent disappointment and avoid rash decisions. For example I bought when everyone was selling last April during the Armenia panick.

[jbe81] 17/1/2017 11:51

They can't be in 2 places at once, the gold isn't going anywhere. It is just the proximity to the plant that means they are focusing on Ugur. With Stephen there now I hope we will see multiple announcements on drilling this year. So you could see results from Bittibulag anytime, I just got the impression you may have to wait, but may well be wrong on that. Good luck trying to buy if they release spectacular drilling results.

The fact you have been here for so long is why posters are here are happy to engage in debate with you. When some think your posts are illogical or you have an agenda.

[homebrewruss] 17/1/2017 11:49

have there been any details/comment on how much profit they make on the copper they are producing anywhere?

[terropol] 17/1/2017 11:48

JBRAVO, you been quite for a wile....welcome back. I was assuming you had gone on Holidays somewhere remote....lol

[zhockey] 17/1/2017 11:45

JBE, if they believe BB is substantial they should drill a few holes like UGUR and release the news, they only drilled a few at UGUR before announcing.

I hold a base position that I bought 8 years back, quite a lot, but will buy more if I have funds as soon as there is a clear sign that they have enough resources to extend the mine life.

[ferries5] 17/1/2017 11:37

Pro-active view


Anglo Asian Mining Plc's (LON:AAZ) hailed a doubling of copper production
last year though it undershot its gold target.

Grade issues continued to affect the Gedabek mine in Azerbaijan and the
miner produced 15,483 ounces in the three months to December.
That made just under 65,400 oz for the year or some 9% lower than 2015.
Anglo added it achieved a gold price of $1,227 per ounce for the final quarter
and US$1,253 per ounce on average for the year
Copper production doubled though and chief executive Reza Vaziri said this
was one of Anglo Asian's achievements of last year.
Some 1,941 tonnes of copper were produced along with 165,000 oz of silver.
Vazari also noted the connection of Gedabek to the national grid in Azerbaijan
in November, which was a major development as it would cut energy costs at
the mine significantly.
Net debt at the year end was US$35.1mln, with Vazari extending his loan to the
company for another year.
"Having made a gold discovery at Ugur, only three kilometres from our
Gedabek processing facilities, we are excited to have commenced a significant
exploration programme which is already yielding potential new sources of ore,"
he added.
Shares rose 5% to 23.2p.

[jbe81] 17/1/2017 11:37

Your silence on AAZ recently has been deafening , Jbravo. Waiting for something?

[jbravo2] 17/1/2017 11:35

Isn't it all a bit strange this irrevocable conversion of options long before their due date?
Why has this has been announced like this?

[jbravo2] 17/1/2017 11:32

Zhockey was saying this would be sold this morning. That was reckless deramping :D

[terropol] 17/1/2017 11:26

ZHOCKEY, I have known you on this BB for about 9 years....
Taking your point on not having a guarantee on future production, but if we had that, the company would be valued at £100m plus.

WE have a big operation there and with full support of the government.

Our valuation is allowing for all disasters possible.
And if we find more and more gold!!! Copper going well and market demand remains strong....

This company is undervalued.

See what this quarter brings.

[deanroberthunt] 17/1/2017 11:24

full ask being paid now....

[jbe81] 17/1/2017 11:19

Because they will mine the gold at Ugur first, so there geologists will be working on that first. I think there will be a lot more gold in Bittibulag, but makes sense to mine the gold closest first. The only reason they are concentrating on Ugur is proximity to the plant, drilling results at Bittibulag should make you change the tone of your posts. If you are holding then.