Anglo Asian Mining Share Discussion Threads

[jbravo2] 05/10/2017 13:18

Some nice info for those unaware.

"Further plant expansion should enable gold production to ramp-up again to new levels, enable standalone copper concentrate production and for costs to fall as blended grades rise with the higher grade ores being fed"

"... with strong operating cash flows more than covering ongoing investments"


Lovely.

[celeritas] 05/10/2017 13:16

jbe, I guess its more frustration. AAZ are so seriously undervalued that it needs Angel to do what other Nomads do and thats get the message to new investors. It really shows just how many are aware of aaz by the amount in the end of year price prediction.

[celeritas] 05/10/2017 13:07

Angel's job is to bring in new investors. To us the note is easier to understand but to newbies it'll take a little getting your head round for quick impact which is really what a note is.

Some Nomads do write great pieces and what I think Angel need to do is a few comparatives with other co's. Plenty of co's are still exploring yet are valued more, Angel need to point out just how undervalued AAM are especially compared to others, otherwise AAM need to get a Nomad who will.

[jbe81] 05/10/2017 13:04

Fair enough. I certainly see it as a revision of their opinion of the company. The paragraph I have reposted should dispel any fears of Gedabek being out of ore.

[friendzarin] 05/10/2017 13:04

I agree Mattj. I'm not clear who the target audience for this would be. It's not precise or definitive enough to be a proper note on which investment decisions could be generated and reads more like a newspaper report than a business appraisal.I hope that this is not all that results from privileged access to the site given how rarely that opportunity can be taken with the distances involved etc.

[mattjos] 05/10/2017 13:01

ok, I'll try to explain.

To someone who is not very much conversant with the company, the note is pretty much unintelligible.
WE know what's going on because we follow every step in detail and discuss between ourselves. To anyone else, the note is, I would suggest, virtually unintelligible.

John should have waited to get back to London, review his notes and take his time before issuing commentary .. this is rushed and as a consequence very poor.

The company deserves much, much better than this

[jbe81] 05/10/2017 13:00

Next year could well be over 100k oz.

[jbe81] 05/10/2017 12:59

Blue today as predicted.

[jbe81] 05/10/2017 12:57

What is other peoples opinion?

[jbe81] 05/10/2017 12:56

Matt, what makes you say truly awful? Bearing in mind a lot of what was seen may not be able to be said as hasn't been RNSd yet.
Should be able to say a lot more following news in the next month or two.

[jbe81] 05/10/2017 12:52

Gedabek: the Gedabek copper, gold mine is being prepared for reopening with blast holes being prepared for ore extraction towards the base of the pit. Further work is ongoing to plan the extraction of the push back of the high-wall to allow mining to continue in the pit for around another seven years in addition to the two or three which are currently accessible.

[mattjos] 05/10/2017 12:23

Truly awful note, imo.I would dump SPAngel as of today

[ferries5] 05/10/2017 12:09

Big write up by Sp angel, unable to post link so will paste article.


Anglo Asian Mining* (LON:AAZ) 27p, Mkt Cap £30.7m – Site visit reveals fast pace of new mining activity

• Anglo Asian Mining surprised us this week with the level of new mining activity ongoing on site.

• The company reported the temporary cessation of the Gedabek open pit earlier this year to allow the plant to catch up with processing stockpiled ore and to enable machinery to focus on one new mine and tailings dam expansion project within the mining license.

• The new UGUR mine is working following the completion of a new 6km haul road to the mine. The new road was started in May and completed ahead of expectations enabling the rapid start of mining from this 200,000oz of gold orebody.

• UGUR H: around 1,000t of ore per day are being fed from the new open pit at UGUR H. This is being blended and fed into the plant raising our expectations for gold production. Grades in the pit run from 4-5g/t. Overmining is progressing for stockpile development.

• UGUR L: further ore is also being supplied to the plant from UGUR L. Grades here are lower at around 1.5-2g/t.

• The latest Ugur reserve statement assumed 145kt and 362kt mined at average grades of 2.44g/t and 2.08g/t and to be directed to the agitation leaching plant from Ugur in Sep-Dec/17 and 2018, respectively.

• Gadir: a further 500tpd of ore from underground development work is coming in from the new Gadir underground mine running at some 4g/t vs ~100tpd seen in Q2. The underground workings are now some 200m underneath and adjacent to the level of the Gedabek open pit workings and are close to preparation for ore mining, with the ongoing spiral ramp development.

• The exact mining method and drill patterns are still being evaluated despite development now at the orebody after three years of preparatory work though the company has previously reported its intention to fan drill from the underground workings. Sheeted veins containing gold and copper are clearly visible in the underground workings as they are in the open pit workings overhead.

• A proportion of the underground ore is unusually soft and friable but with competent hangingwall rocks making it ideal for blending and sweetening ores from other parts of the mining operation.

• Gadir-Gedabek mine extension: a new drive tunnel in the Gadir mine is currently being developed to test and rapidly develop a new extension to the Gedabek-Gadir mine. 2018 will see tunnelling and drilling work targeting the mineralisation below the open pit.

• Gedabek: the Gedabek copper, gold mine is being prepared for reopening with blast holes being prepared for ore extraction towards the base of the pit. Further work is ongoing to plan the extraction of the push back of the high-wall to allow mining to continue in the pit for around another seven years in addition to the two or three which are currently accessible.

• Mining in the Gedabek open pit mine will run alongside mining from the Gadir underground which is some 200m below the current open pit.

• Plant expansion: Gedabek has one of the world's most versatile and flexible gold plants in operation with capacity to process more ore through the addition of a second front-end crusher. The new crusher project sounds well advanced and may be up and running within 4-5 months of its order being placed enabling appreciable expansion of plant capacity.

• We expect Anglo Asian to continue reducing outstanding debt levels (H1/17: $29.5m in net debt) with strong operating cash flows more than covering ongoing investments

• CAPEX: Anglo Asian are developing new resources at an exceptional rate and at competitive cost. The Ugur mine is thought to have cost just $2m to explore and develop, partly due to its proximity to the Gedabek plant and its open cast operation. The Gadir underground mine which now extends to 2km of near 4m x 4m tunnels may have cost less than it would to employ a couple of Australian truck drivers in the Pilbara through the same period.

• Workforce: the mine now employs nearly a 1,000 staff and contractors working at the Gedabek area highlighting its criticality to the local economy.

• Gedabek Town: There is so much more going on in Gedabek than there was. The town is totally transformed from the desperate poverty-stricken village it was when we first visited in 2004. Hundreds of new houses, offices and shops opening in the area highlight the multiplier effect of wages of the mine combined with contracting businesses and the entrepreneurship of the local people. Gedabek can be held up as a leading example of how mining can reinvigorate the most depressed of local economies.

Conclusion: Anglo Asian Mining is transforming its mining operation. A new mine is feeding the plant, supplementing ore from stockpiles and its other mines. Another new underground mine may start shortly and the original Gedabek open pit may restart mining shortly. Further plant expansion should enable gold production to ramp-up again to new levels, enable standalone copper concentrate production and for costs to fall as blended grades rise with the higher grade ores being fed. If anyone doubted the resourceful ambition of Anglo Asian they should think again.

*SP Angel acts as nomad and broker to Anglo Asian Mining

[run12] 05/10/2017 12:00

Added my prediction - my we are an optimistic bunch

Gutterhead 42p
Joey Wilson 37p
Catsick. 27p
Hedgehog 33 38p
2sporrans. 34p
Ilostthelot 60p
Bleepy 54p
Jbe81. 64p
Jbravo2. 75p
Hoorah Henry 47p
Graylyn1. 58p
Friendzarin 63p
Rougepierre 43p
Puntogt. 52p
Brasso. 40p
Mattjos. 66p
Jeanesy 32p
Showmethemoney 44p
Petrusgazin 137p
Wimbled 26p
Goodgrief 100p
run12 81p

Thanks all for contributions over the year by you posters - much appreciated.

[gutterhead] 05/10/2017 11:54

Anyone else wishing to bid, pls cut and paste, add you bid and repost.

Some pretty ballsy predictions here with only a few who have a less positive guess.

Average punt is 51.2p

[gutterhead] 05/10/2017 11:49

2017 year end AAZ "spot the ball" share price competition.

To add your entry, pls cut and paste, add your punt and post it

Closes for entry Friday 6th.

Gutterhead 42p
Joey Wilson 37p
Catsick. 27p
Hedgehog 33 38p
2sporrans. 34p
Ilostthelot 60p
Bleepy 54p
Jbe81. 64p
Jbravo2. 75p
Hoorah Henry 47p
Graylyn1. 58p
Friendzarin 63p
Rougepierre 43p
Puntogt. 52p
Brasso. 40p
Mattjos. 66p
Jeanesy 32p
Showmethemoney 44p
Petrusgazin 137p
Wimbled 26p
Goodgrief 100p

[joey wilson] 05/10/2017 10:37

I know tjis JBravo and I understand that this might be a better time but it has always promised for next year. Year after year. I always believed in this company for the simple reason they dont dilute the shares every 12 months. I really hope this is the time. I have been patient gor about 8 years now. Other peoples contributions and yours have convinced me that this time I might get my jam ?

[jbravo2] 05/10/2017 10:27

@Joey Wilson

Jam tomorrow?
You do know the share price is up over 400% in the last 18 months?

Granted it was criminally undervalued then, but many things have changed in the last 18 months and we're now at the stage again where another big surge in share price is overdue.
A mkt cap of under £30m is simply absurd for the numbers this will throw off next year.

[goodgrief] 05/10/2017 10:08

If they declare four mines up and running and a mine life of 10 years, I'll go for a £1.

:-)

[celeritas] 05/10/2017 08:48

I'll have 49p

[joey wilson] 05/10/2017 08:17

AAZ .... Always jam tomorrow ?

[jbravo2] 05/10/2017 07:33

:O

Oh my word.
I'll buy the dinner for us all if petrus is right

[petrusgazin] 05/10/2017 03:18

I will take a bottle of this if correct (-:

[petrusgazin] 05/10/2017 02:37

My guess is for year end we get taken over at the replacement cost of the plant/mine which is 137 pence ( 205m usd in the accounts )