Anglo Asian Mining Share Discussion Threads

[return_of_the_apeman] 21/3/2018 17:33

I'm with crazycoops, 20% of FCF to be distributed as a divi would send a strong message regarding returns for shareholders and would force the market to re-rate the valuation here. I think this is the current policy of HGM and CAML.

[jbe81] 21/3/2018 15:52

Good day for gold so far

[davidspringbank] 21/3/2018 13:38

bleepy, thanks for that. It sounds like they are going to be very busy capitalising on what they have got!

[bleepy] 21/3/2018 13:23

AAZ news releases thus far 2018...

rns 10/1/18 Update re Director Loan

rns 16/1/18 Q4 & FY2017 Production and Operation review

rns 6/2/18 Anglo Asian Mining forecasts uptick in production from 2018

rns 6/2/18 Updated Corporate Presentation

rns 12/2/18 $15ml Syndicated 2-Year 7% Loan Facility

rns 13/3/18 Launch of 2018 Exploration Programme

plus several video presentations released 2018


Given we are just some 11wks into 2018 the news release thus far has been quite regular. The last video release just days ago.
I thank Aaz for their efforts in keeping shareholders updated and informed, telling me they are listening to shareholder suggestions and concerns.
So a little patience and I’m guessing Aaz will continue with frequent updates keeping all holders informed and content.

[crazycoops] 21/3/2018 13:21

Matt, yes I too had anticipated an updated JORC. In the last RNS they said JORC releases throughout the exploration period. Ho Hum! On the plus side, it makes it even harder for hot money to trade this share because a JORC update could literally come at any time.I am now anticipating next news to be the Q1 production update. As for dividend, I'd like to see a clear dividend policy based on FCF. I imagine we will need to wait for FY results for that news (also, I think divis have to be AGM approved?).

[mattjos] 21/3/2018 12:46

I must be being thick, I think.

without going back over the videos, I distinctly remember our being advised that ACTUAL data from exploration was imminently being released .. due circa end Feb / start March.

That now seems morphed into a fleshed-out statement of intent with regards a three year exploration programme that was already in the public domain from December last year.

If others have same interpretation as me from the interviews then, others will also be left wondering just what is going on at present.

[bleepy] 21/3/2018 12:08

There’s so much in the video transcription to mull over but this extract alone will justify the AL plant...as we have already discovered plenty of sulphide ore.

“ significant benefit of the Ugur deposit on our inventory …its an oxide deposit, it’s easy to mine easy to process and it’s that style of mineralisation we are looking to try to find further resources and reserves thereof.”

[terropol] 21/3/2018 12:02

Tonight at 18.00 we should get US plans on rate of fed. 0.25 increase 100% expected by the market, forward planning on 3 more rate changes also in the market. All being as expected should see the Gold price trying to knock on the $1350 door again.

Can the world leading economies afford higher rates? I say a small advance but after that it would be a disaster, to much outstanding debt out there.

Gold likely to remain KING.

[bleepy] 21/3/2018 11:15

We had rns 13/3/18 announcing 2018 3 yr exploration roll out. 5 days later we have thanks to Friendzarin a transcription of Bill Morgan/Stephen Westhead video(I have cp below as its well worth another read). We have asked the company to release news items well spaced and in smaller digestible size. That being the case then perhaps next week would expect follow on news of 2017/2018 exploration results.


Anglo Asian Mining Plc’s (Lon:AAZ) Bill Morgan and Steve Westhead discuss with Proactive their three-year rolling programme of geological exploration of near mine ,brown field and greenfield areas on its ground in Azerbaijan. March 16 2018.

Presenter :The main focus on Gedabek is that correct ?

B M : Correct the main focus is on Gedabek. We are planning to do some very extensive geological investigations and quite a large amount of drilling but let’s not forget we will also be doing some work at Gadir and some work at Ordubad …so although it’s a programme focussed on ‘Gadir’ (sic) we are not forgetting any of our other operations.

P: Steve if you can tell me a bit more detail of what the objective of the programme here is ..what you are looking to achieve.

SW: Certainly, and the main objectives of the exploration programme are to…
.a) replace our mined ounces but to increase our company resource and reserve inventory with the objective of gaining a forecast mine life of 10 years plus.
In terms of the strategy overall based on that objective it’s important that we dovetail our exploration programmes with our production profiles and that’s where we are trying to ensure continued growth and sustained production for a long period of time ..with that in mind we’ve assessed our exploration activity and categorised them into three groups ..those groups being –
- Near mine exploration which would initially focus on the ounce replacement and extending life on our current operations
- Brown field exploration which is primarily at the Gedabek contract area where the brown field exploration is essentially defined where we have access to processing facilities and our processing facilities at Gedabek are varied enough to handle both oxide and sulphide and all types of mineralisation that we are likely to find at the Gedabek licence.
- but importantly for the longer term success and sustainability of the company is our green field exploration and the importance there is to ensure that as resources and reserves become depleted over time we have continued increase of new deposits coming into the production pipeline for the future and that aspect of the work .. the greenfield work is focussing on our other two contract areas at Gosha and Ordubad.

P: So very little work previous exploratory works been done at Gosha and Ordubad Steve ?

SW: There was reasonably extensive work under the Soviet exploration era for which we have a significant amount of information. I can reference our listeners to our original prospectus which summarised a lot of that information and highlighted a lot of the potential however recently what we have been doing is carrying out a lot more exploration work and validation work of that Soviet data and identified quite significant areas of alteration which could be indicative of further copper and gold style mineralisation that we intend to further evaluate over the coming years.

P: and so you’ll be looking at a mix of drilling ..you are looking at what. Around just 43 and a half thousand metres of service and underground drilling ..that what’s planned ?

SW: Yes, that’s correct. The majority of the drilling is near mine and brown field focussing on the Gedabek contract area obviously then to enhance our production profile and extend life of mine but importantly as demonstrated by the finding discovery and subsequent development of the Ugur deposit which we found in 2016 and brought into production within a year in 2017 that really demonstrates our ability to convert resources and reserves into production very quickly and within the Gedabek contract area there are many known mineral occurrences .So in addition to the drilling we are planning an airborne geophysical survey and that geophysical survey will help identify anomalies and that’s areas where there’s a contrast variation with the background rocks which could be then targets for future drilling programmes to help find further deposits for evaluation.

P: When are you planning to do that Steve ?

SW: We are planning to do that mid year this year ..that’s the airborne exploration programme and all being well we should have the results out during Q3 of that information. Subject to its validation because what we are going to do as well is we are going to be carrying out that type of geophysics survey over the Gedabek mine, the Gadir mine and the Ugur mine and identifying those signatures and using those signatures to try to identify similar type of deposits over the rest of the licence area. Then assuming that works well the plan would be to utilise a similar strategy at our other greenfield areas ..initially at Ordubad and then subsequently at Gosha.

P: So do you reckon we are talking 2019 before we start to drill here?

SW: Well we have some targets already that we would be happy to drill during 2018 in Ordubad would be surface mapping…next year then yes it will 2019 when we will then be doing the follow exploration survey by geophysical methods and follow up drilling at Ordubad.Yes.

P: What’s the current life of mine at Gedabek?

SW: It’s in the order of about 7 years so we are looking to obviously extend and increase our production profile and we’ve seen the significant benefit of the Ugur deposit on our inventory …its an oxide deposit, it’s easy to mine easy to process and it’s that style of mineralisation we are looking to try to find further resources and reserves thereof.

P: So that sounds as if you are pretty keen to crack on and getting going with this programme here ?

SW Absolutely ..yeah we are all very excited the programme that’s been put together and obviously given the successes of last year and the work that was carried out its formed a very good platform for this programme going forward. With regards to the Gedabek mine itself , last year we constructed a tunnel from our underground mine at Gadir into the underground portion underneath the Gedabek open pit and we’re planning to extend that tunnel this year to carry out further underground development so that we can then start to assess the timing for transition from open pit Gedabek mining into underground mining .So we have a significant programme of both open pit style mineralisation to assess as well as underground.

P:Bill let me bring you back in at this point . How much are we talking here in terms of cost to get this programme done ?

BM: we are talking $6 million for this years programme.

P: $6 million… that’s just for this year ..that’s not for the three year cost is it ?

BM: Correct no. We are planning to spend $6 million this year and that’s all coming from our internal resources.

P: Feels as though you are in a position here to really start moving forward here….quite a critical year ahead for you ?

BM: Well last year was a very critical year, obviously getting Ugur up and running and that happened very successfully so we are very proud of that .But yes you know we are now in a position both financially and technically to really start moving..we’ve got the money and people in place to do it.

P: Bill ,Steve good to speak to you thanks very much.

[celeritas] 21/3/2018 11:10

For me it was all about the 3 year plan, I wasn't expecting an update.
The next update should be production which looking at news could be better than expected for the winter months.

I agree on a 1p divi on the full year, Id actually rather have a quarterly divi but I guess this is more costly to administer.

[gutterhead] 21/3/2018 10:54

Matt, yes I must admit to being a bit lost. I thought they had promised another update as part of their “little and often” comms strategy. I’m not too fussed as am nowhere near selling.
A 1p dividend would certainly Quieten the doubters who are put off by the mine location. It would provide certainty and give the company some more credibility.

[mattjos] 21/3/2018 10:38

has anyone been in touch with company to try and ascertain whether or not they intend to give an exploration update as intimated in the last two interviews?

Is it just me or, there is a great deal of confusion right now about this?

[lefrene] 21/3/2018 10:14

A divi would help the company get noticed and perhaps get it sensibly rated instead of the absurd current low rating. But what am I saying? just buy more shares!

[jbravo2] 21/3/2018 10:13

Yes I agree splitting to two payments is better.
A penny for second half of 2017 is fine :)

[bleepy] 21/3/2018 10:12

Agree with the 1p maiden dividend and should be given as half annual with another to follow in 2nd half of this year. That would satisfy shareholders and mr market sending a clear signal to institutional interest.

[mattjos] 21/3/2018 10:06

Agree. Think 1p per share would be a great signal from the company, Terropol.

2.5% yield is not excessive and looks quote affordable for the company.

It would send a strong message to the market and I am sure that many investors would use the cash to buy more shares in the company so, would have a very positive effect.

Reward for the loyal group of PI's that support this company after all this time & recognition of that support would be well received.

[jbravo2] 21/3/2018 10:04

1p is a great start.

I'd be happy with that to start with. It is after all a recognition of the last 12 months performance.

However if we do achieve your prediction of 24,000oz this quarter and then perhaps >90koz for the year then that should appreciate quite rapidly IMO.
No, 10% increase stuff, but more like possibly paying 3 or 4p the year after. Some sort of guide should be issued. eg a certain percentage of free cash or profit going to dividend each year.
I realise that is looking forward a full year though and assuming lots goes to plan but that's where we finally are.

[terropol] 21/3/2018 09:46

Good morning all.

Going to the dividend talk.
How much would we all be happy with for this year?

If we got say round figure 1p costing the company £1m, that would give us 2.5% yield (approx)

I would be happy with that, affordable and giving the market a sign of financial comfort at the company. Then looking for an increase the following year.

I say we have a good chance of getting that!

[mattjos] 21/3/2018 09:13

Joey ... if we were going to get an update on exploration to date, the recent update was surely the time for the company to give it. Since they did not, I assume they have nothing to update us with

[bleepy] 20/3/2018 21:35

If Aaz intentions are to give a maiden divi then why not sooner than later, this week, next week, next month. They have signalled their intentions re the Gedabek open pit, Gedabek underground mine, Gadir and Ugur toward intensive and extensive further exploration and development. I’m sure they must hold enough drill data from previous 18mths that have them focus their attention on these prospects, the nearness to production plant an added bonus. The new loan arrangement and 3yr exploration roll out further signals the potential going forward. So divi news asap please.

[joey wilson] 20/3/2018 21:29

Surely in Bill Morgans interview he stated shareholders would have to wait a few more weeks. Well that timescale is now, not another months time. All we've told so far is what was already known.UNDERWHELMING describes things exactly to date Mattjos. Exact description of the present state of play.JW

[celeritas] 20/3/2018 20:52

Ditto terropol.

[jeanesy] 20/3/2018 20:37

I am still expecting to get some news on drilling this week!

[terropol] 20/3/2018 16:32

Could not resist a few more at end of day.

[bleepy] 20/3/2018 15:20

Looks like a few bed n isa trades displayed as all sells gone through this morning.