Anglo Asian Mining Share Discussion Threads

[jbravo2] 18/5/2017 21:03

No jeanesy.
You're completely wrong.
It's 2700oz of dore.
And that's now being produced after whatever has been taken by the flotation, not before.

[jeanesy] 18/5/2017 18:28

Am I right in thinking then that April's production was less than 3000 oz ??!!! That is pretty dreadful considering they are now producing from stockpiled ore. Surely there is no excuses they can give this time - ie weather .. No wonder this has fallen sharply today. Can only seeing this going one way in the near future. The company needs to find gold at decent grades ( i agree with zhockey the grades given recently were poor ) and fast !

[bleepy] 18/5/2017 10:33

08 May 2017 07:00:09

Anglo Asian Mining

RNS Number : 3798E
Anglo Asian Mining PLC
08 May 2017

Gedabek is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.


So Gedabek is a series of interconnected pits at which they are currently drilling 15,000mtrs. I'm sure Westhead has specific areas and pits in focus for exploration.

They are extending the development tunnels at Gadir, opening new ones and further exploration of the underground mines.

From the rns it states ore mined at Gosha underground mine is processed at Gedabek plant.

[zhockey] 18/5/2017 10:13

Catsick, considering they drilled arround the edge of the initial find with poor results I think you are being overly optimistic.

The best results I think would be to find one or more gadir type lenses under the current pit. But that is wildcatting so let's wait and see.

I still don't think investors here are discounting the risk.

[catsick] 18/5/2017 10:08

Yes i saw that, they are going to run out pretty fast if zhokeys 50k estimate is right

[bleepy] 18/5/2017 09:55

"Conservative gold production target for Gedabek for the year to 31 December 2017 ("FY 2017") of between 52,000 ounces and 58,000 ounces (which includes approximately 8,000 ounces to 10,000 ounces of production from the flotation plant and 8,000 to 10,000 ounces from the new Ugur open pit), reflecting the strategy of exploration and long term production optimization. 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,” the Company said.


"and 8,000 to 10,000 ounces from the new Ugur open pit)"

So,from proposed start of production of the new Ugur open pit in Q4/17 they conservatively estimate 8,000 to 10,000 ounces of gold.
If thats the conservative estimate from start of production then I wonder what FY/18 will produce once infill drilling and mine mapping is complete.


Not forgetting 15,000 mtrs of exploration drilling at Gedabek open pit.

Not forgetting the construction of new development tunnels and further exploration of Gadir underground mines.

Completion of water treatment and tailing dam.

$2m/yr savings going forward from electrification which also optimises plant running times ( they experienced plant downtime during winter periods due to frozen diesel).

[catsick] 18/5/2017 04:49

Zhokey, I would say if you are correct and there is only 50k oz at ugir then probably yes these will go to 8p as if that was the best prospect and it was all for 50k oz then we are at the diminishing returns end of the spectrum , However I think we are going to see more like 250-300k as a start and a lot more drilling to flesh more resource out, that I think will see us back to 30p+ It all remains to see what the jorc report says and what further drilling reveals, all the kit is now in place and we should be able to clear the debt with what we have already, there is huge leverage now to results / revealing the current finds, would be nice to see maps of the holes they drilled so we can make an uneducated guess ourselves !

[bleepy] 17/5/2017 22:21

Azerbaijan’s key gold producer optimizes extraction plan for 2017

Baku, Fineko/abc.az. Anglo Asian Mining plc, the main gold producer of Azerbaijan, has revised the development strategy on its base field Gedabek.

Anglo Asian stated that an extensive strategic review of its Gedabek mining operation was in response to the declining gold grades of ore mined from the main open pit and the recent successful exploration programme during which the Company discovered the Ugur deposit.

“The result of this review is that an extensive programme of exploration and production optimisation will be carried out in 2017, together with starting ore production from a new open pit at the Ugur deposit, by the end of the year. The Company will also process part of its 1.1 million tonnes of high copper content ore stockpiles in 2017. To process this stockpiled ore, the flotation plant will be used to treat the ore to remove copper prior to leaching. This re-configuration of the processing facilities will enhance the flexibility of Anglo Asian’s operations,” the Company is sure.

Anglo Asian points out that 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 Company informed.

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. To provide ore feed to the processing plants for those periods when ore is not being mined, the Company will process its current extensive stockpiles. Approximately 50 per cent of the ore processed by the flotation and agitation leaching plants in Q1 2017 came from stockpiles. This stockpiled ore was blended with mined ore to ascertain the suitability of stockpiled ore for processing,” Anglo Asian underlined.

According to its estimate, stockpiled ore also has the additional advantage of being a lower cost feedstock.

“Conservative gold production target for Gedabek for the year to 31 December 2017 ("FY 2017") of between 52,000 ounces and 58,000 ounces (which includes approximately 8,000 ounces to 10,000 ounces of production from the flotation plant and 8,000 to 10,000 ounces from the new Ugur open pit), reflecting the strategy of exploration and long term production optimization. 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,” the Company said.

[ferries5] 17/5/2017 21:44

Azerbaijan almost zeroed its gold reserves
Gives Aprils production 11963 troy oz for 4 months



Plenty about Azergold at the bottom of the above link

AzerGold plans profit of $85 million before end of 2017

AzerGold exported largest batch of precious metals from Azerbaijan - nearly 40,000 ounces

[mattjos] 17/5/2017 19:48

Dodgy internet here in Kruger Park but, I see Gold going along nicely. Gets interesting at 1280

[brasso3] 17/5/2017 19:19

Gold was always going to close the gap up to $1260.

[el_duderino_7885] 17/5/2017 18:30

*under 1% and don't forget they are double seasonally adjusting GDP figures now. We also know they understate inflation.

Goodness knows what the actual/real GDP figure is in reality. Negative several percent I'd guess.

[el_duderino_7885] 17/5/2017 18:09

2sporrans: exactly! The generally accepted narrative of higher government spending, higher growth and higher yields and stronger dollar is falling apart. This is why a lower dollar and lower dollar yen, and therefore higher gold prices are likely as the year unfolds.

Yields in Europe are negative and it wasn't that long ago that the yield on the 10 year German note was negative!

Like you said little opportunity cost of holding gold.

The Fed are raising rates in to all this?? What?? All they are doing is flattening the yield curve and guaranteeing another recesssion.

Do people really think they are doing what's best for the US economy or for their member banks? Hmmmm.

I'm also suspicious they are doing it to help get rid of Trump. Why raise rates now? Look at q1 GDP for christ's sake. Under 1%!!!

[redtrend] 17/5/2017 17:00

AAZ a long way from falling to 8p too...

[jbe81] 17/5/2017 15:37

gold a long way from falling below $1000

[robo15] 17/5/2017 14:14

Gold back thru 1250, this with increased production this summer
Should see a strong rally in the next couple of months.

[celeritas] 17/5/2017 13:58

Stock still very tight, looks like someone has been loading up.

[2sporrans] 17/5/2017 13:38

Adding to el_d's prescient post, the subdued economic outlook also supports the POG; not least wrt the opportunity cost of holding it.
Lower rates for longer is winning over the synchronised global growth scenario in vogue earlier this year. E.g. US 10yr Treasuries now yield 2.28%, yet they were over 2.6% in March and much talk of 3% by the Summer. Real rates must be close to zero in US and even -ve in many markets.
So, if inflation does suddenly take off, the rates will be well behind it which ought to be supportive for gold.

[celeritas] 17/5/2017 09:47

good post el_d.
Stock is very tight today, 5k online.

[el_duderino_7885] 16/5/2017 21:13

Gee dollar index now down to almost 98. That's back to below the Trump euphoria levels.
Like I keep saying: this has huge implications if you look at the long term dollar chart, it simply can not be understated. The dollar consolidated for 2 years before breaking out above 100 and has now failed.

It may well now stabilise some we'll see but the next target after 98 is 93! That should happen later this year and logically correpend to the $14 -1500 target for gold.

The ultimate target for the dollar could be the rising trend line from 2011 at sound 87/88 next year.

Gold is likely to do extremely well under this backdrop. Need to watch the dollar index and of course dollar/yen very closely over the next few months.

[el_duderino_7885] 16/5/2017 14:37

Thanks Zhockey.

Ok yes then 8p is possible in that scenario - so not based on the AAZ fundamentals then.

Being entirely unbiased we are in a neutral pennant formation in gold which could go either way. If it breaks to the downside we'all see sub $900 gold. However a break to the upside would imply $1,500 gold.

I'm very much in he camp it will break to the upside. This has to resolved by Autumn one way or another.

Look at the dollar now, major breakdown in place and looks set for a huge move down over the next few years. With this and other signals I think it highly likely we'll see much higher gold prices as early as late summer this year.

[zhockey] 16/5/2017 14:24

El_D

I think we'll see a capitulation in gold and a drop to a very low level.

As Matt's charts have proven there is absolutely no value in that endeavour. Not a criticism of Matt but it is a flawed art.

[el_duderino_7885] 16/5/2017 13:40

Zhockey you didn't respond.

I agree the fundamentals have changed for now but that's why we are down over 40% from the highs. The company has been revalued hasn't it.

Where do you get 8p from or is it pulled from thin air?

[zhockey] 16/5/2017 13:37

And they are going to say anything that is not in the public domain?

The drill results published for Ugur were pretty awful. Until we get an RNS it doesn't mean anything.

[celeritas] 16/5/2017 13:15

I feel you are missing the bigger picture here.
Try mailing them.