Anglo Asian Mining Share Discussion Threads

[el_duderino_7885] 18/4/2017 12:21

Still not bought back in but I will be soon.

Really liked the detail in the update and the company seem to have a sound plan in place for addressing the current issues.

The new open pit will be a fantastic addition as more resources are proved and with a higher gold price offsetting the lower production somewhat,i'm confident that plenty of cashflow will go in to exploration this year.

Should be a fantastic platform for much bigger and better things.

[zhockey] 18/4/2017 12:16

I wonder if this drift back now as it could be a quiet period. I suspect this will now follow the price of gold until news on Ugur potential is released and that could not be for 6 months or more.

[jbravo2] 18/4/2017 12:15

If I could vote that up ten times I would.

[cannonfodd3r] 18/4/2017 12:09

I think that people need to remember that Gedebek, Ugur and Gadir are all basically one asset on the same mine site. These deposits arent miles away just literally around the leach pads. Its long been said that the whole mine and in fact town is sat on gold/copper/silver rich ore, its just a case of getting on with deciding what is best to mine, which they are doing. I think sometimes people forget thats its all one site with different names for different operations, however its all one ore body in reality. Have a look on Google Earth at the place. The tailings dam and Gosha are the only remote operations.

I think its pretty clear who is buying up stock. There is a lot of value in the company, be it current operation, knowledge, assets (and there is a few it has the rights to) and i suspect the stock is being bought up so that Reza can sell a big stake and they still have a controlling hold. This could push the price up to well over £1 as people start to realise this.

[ilostthelot] 18/4/2017 11:53

Its an honest report and the forward planning has to be commended.

The resource at Gedebek is clearly not great and needs significant drilling for better understanding of the Geology. That for me is a negative and yes the high grade ore is getting very scarce in that open pit.

Cost cutting and Conservative production target all being achieved while drilling and optimizing production for the future is impressive.

Lets hope that the drill can find decent grade ore at gedebek that is after all the main site for mining . It looks to me that the low grade ore will be the main feed for the mill for a long time and that is what they will optimise. Its anyones guess how much mine life is. My guess would be 5-10 years. So debt free within 2 years then its time for profit and shareholder gain.

Happy to hold.

[terropol] 18/4/2017 11:26

I say, The activities at the mine are run by top professionals, they are taking no gambles and assessing the ore and cost of production at all stages.
I am confident in my mind that targets have been set low not to risk disappointing the market.
We must also remember we are partners with the government, hence all statement will be crystal clear.
Our valuation remains that of a small explorer....
WELL DONE AAZ for looking forward and working to build a strong mining company.

[zhockey] 18/4/2017 11:22

Well I have voted Tory in every general election but if Labour campaign for remain I will vote for them.

[mattjos] 18/4/2017 10:52

wonder what a snap election in UK will do for the gold price?

[zhockey] 18/4/2017 10:30

Cyber,

48k net to AAZ * $800 - $6M capital spend = $32.5M

[jbravo2] 18/4/2017 10:22

As an aside to the chat about the RNS I'm still intrigued by the shift in trading.
The last year has seen far more action in auctions, in trades after hours (and to a lesser degree in delayed trades.) Check your data if you don't believe me. It is very noticeable.
The amount of shares that have traded this way in the last year is very large. It continues.
Someone continues to buy up shares at value prices, but is happy to take their time. They don't want to drive the price higher and instead is happy to let boredom/uncertainty drive the availability of shares for now.

[cyberbub] 18/4/2017 10:19

Zhockey surely 55K couldn't lead to that much profit??

[zhockey] 18/4/2017 10:13

Let's not forget that 55k oz should yield about $32M in profit this year. So we could see 80k next year with very little debt left. That would be 32p free cash flow per share, 10p dividend?

[petrusgazin] 18/4/2017 09:55

From the data they have given my guess would be they have 300k oz in easy to get at oxide ore which will keep them busy for 3-4 years,and justify relocating equipment as the average grades will be higher, the drilling at the main site will hopefully show some high quality sulphide pockets which will be drilled for mainly copper but also should flesh out a much better understanding of the much larger low grade orebody which will be able to supply the plant for many years to come, my guess is that within the wider area there is plenty of ore to keep the plant running for 20 years, they will just need to keep doing 5-10k of drilling a year to replace what they are mining.

[zhockey] 18/4/2017 09:50

CSM

Running two pits would require twice the workforce and equipment. The have decided to move to Ugur as it is oxide rich and MORE profitable than Gedebek which is sulphide rich.

As I said two years ago they could probably sustain 50k oz for a good long while, but it looks like they want grow production.

[bleepy] 18/4/2017 09:44

From memory Bittibulag is copper rich ore.

The completion of plant reconfiguration and optimisation to maximise copper recovery at lower costs being carried out before announcing findings at Bittibulag perhaps.

Another strategic goal to be scored, come on Reza gives us a clue...

[bleepy] 18/4/2017 09:30

The current open mine has stopped production whilst extensive exploration takes place as per statement....

Ore mined from the open pit has recently had a lower gold grade and a higher percentage of copper than ore previously mined. It was therefore decided to carry out an extensive programme of exploration and production optimisation to better understand the distribution of copper in the ore body and to define the resource and reserve. Mining will therefore be temporarily stopped in the open pit in Q2 2017, and during the remainder of 2017 approximately 15,000 metres of drilling will be carried out, in furtherance of this programme. It is anticipated that mining from the open pit will recommence in Q1 2018.


The report also states a starting date for the new Ugur open pit as Q4/17...

The temporary cessation of mining in the open pit will enable the heavy earth moving equipment used in the open pit to be redeployed. The fleet will be used for transporting ore from the stockpiles and also for the road building and other development work necessary to bring the Ugur deposit into production as an open pit mine. It is expected ore will be mined from the Ugur open pit mine in Q4 2017.


Addionally Gadir will be returned to production Q4/17.....

Mining of ore from the Gadir underground mine was suspended in February 2017. Extensive underground exploration is being carried out and development tunneling undertaken. It is expected that mining of underground ore will recommence in Q4 2017. Any ore mined from Gadir during this exploration and development phase will be stockpiled for later processing.



Mining is still ongoing at Gosha.

I read the report as.

* mining ongoing at Gosha
* Gadir restarts Q4/17
* present open pit restarts Q4/17
* Ugur, new open pit starts Q1/18
* reoptimisation of production plant
* extensive ongoing exploration
* further cost cutting
* ongoing debt reduction
* maintaining output whilst exploration/optimisation/new mine on stream takes place.


So, Ugur is an expansion of present operations not a replacement.

We still await an update on Bittibulag.


As I have said, an excellent update.

[mattjos] 18/4/2017 09:06

Think you must have been reading different news to the rest of us

[csmwssk12hu] 18/4/2017 09:00

That update basically says current location is no longer profitable, if it was they would run two pits at the same time, time to wake up and smell the roses

[zhockey] 18/4/2017 08:58

This is a great update, the fact they can produce 55k without mining is very impressive and should underline the value here. Everyone who is worrying about Gedebek reserves is forgetting the stockpiled sulphide ore.

80k next year from Ugur?

[mattjos] 18/4/2017 08:58

A lot to digest but, pleased that several points raised by shareholders are being acted upon now.I also note the 'Conservative' wording in the gold production target for the FY.Debt continues downwards also.

[2sporrans] 18/4/2017 08:35

"It is anticipated that mining from the open pit will recommence in Q1 2018. " Presumably with processing plant set up geared to a higher copper:gold mix, as now. On top of this perhaps they can further enhance the plant capability in the interim.

[jbe81] 18/4/2017 08:28

Gold recovery up to 84%, a lot of things moving in the right direction going forward.

[bleepy] 18/4/2017 08:24

Total production target for FY 2017 expressed as gold equivalent ounces is between 64,000 ounces and 72,000 ounces compared to FY 2016 actual total production of 72,304 gold equivalent ounces.


A well developed strategy and a clever stockpiling of ore to date enables a smooth transfer of operations to the new Ugur open pit alongside ongoing expansion/exploration of Gadir.
Another 15,000mtrs of drilling to be carried out throughout 2017.
Impressive indeed and look forward to futher updates as they progress.

[edjge2] 18/4/2017 08:20

Cannon that might help us along, something to look forward to.