Anglo Asian Mining Share Discussion Threads

[mattjos] 08/6/2018 16:23

Edited jbravo, thanks

Welcome aboard cflather .. feel free to ask anything. Many of us here with years of knowledge about the company and willing to share.
Constructive posts welcomed

[cflather2000] 08/6/2018 16:20

Thanks for the replies to my question. I've bought in here today. Looks like there's a lot of upside potential if they can pull up the forecast quantities with the aisc projected

[jbravo2] 08/6/2018 16:12

Basher had over 16%

[mattjos] 08/6/2018 15:56

As we went deeper at Gedabek Open Pit, so the Cu content increased and the Au content reduced.
Cyanide consumption increased dramatically during a time of reducing Au prices and whilst we were (as allowed by the terms of the PSA) heavily depreciating prior years capital costs.
So, that lead to the decision to introduce the Flotation plant for targeting the Copper either before or, after Agitation targeted the Gold.
You can see the effect that had on the Q'ly production chart for Copper in the header of this thread & how the AISC has subsequently dropped so considerably as the cyanide usage is back under control.

Combine that series of events with a forced seller of 16+% of the equity here .. Khagani Bashirov ... & the price slumped to 5p and we were loaded with $50m debt at the same time.

Reza kindly lent us the final $4m needed to see the turnaround programme through to fruition and we are now back to profitability going from strength to strength.
As a consequence, I believe we know more about processing this type of ore than most other mining operations in the world.

[jbravo2] 08/6/2018 15:25

A few reasons.
Some meant we genuinely had less money and some which just made it appear even worse, eg the depreciation of an expensive new plant.

The price of gold in those years is vastly different. Look it up. Thats a large part of it.
We'd just opened our AL plant at the same time as we started to uncover lots of copper rich ore. The AL plant wasn't best suited to that, costs went up due to chemical use to offset that. We ordered a flotation plant better suited to the copper rich ore.
We now had lots of plant to depreciate.
We hadn't had a tight control on costs previously due to the comfort the price of gold had given.

Lots of reasons, really, and all behind us!

[terropol] 08/6/2018 15:19

cflather2000, found to much copper in the ore and had escalating costs due to cyanide being absorbed by it. They then had to move half a mountain and build a new plant....
Also had to account for the excavation without using the ore at that time (processed later). This is an rough description of the story.
If you look back at this tread and the one by SAT you can follow the story like a book.

[cflather2000] 08/6/2018 14:07

Why did this company go from 29m dollar operating profit in 2012 to a loss making operation 2014-2015?

[mattjos] 08/6/2018 13:13

MM's now bidding me over 45p for 25k ... Zero stock offered. not even 500 shares

[lefrene] 08/6/2018 12:06

basem1, my guess is it will move sideways now until fresh news gives a new impetus. Lots to look forward to as the new plant cranks up, new resources are found, the last of the debt is paid down, and a divi is initiated. This looks like the year when all the hard work comes together. I'm pleased to see that the local community is also thriving because of the work provided by the mine, and the company inputs into education and local agri businesses.

[basem1] 08/6/2018 11:06

Hindsight can be a wonderful thing, most unlike myself not to buy the low. 45.7 now seems to high lol

[mattjos] 08/6/2018 11:02

yes, online bid now 45p for 25k+ shares

[basem1] 08/6/2018 10:53

Firmly believe the overhang is close to Clearing. Dummy 10,000 trade 45 - 45.7.

[celeritas] 08/6/2018 10:43

Beufort is just a guess but my thoughts are that they would have some. Are these to be sold to balance the books, who knows but really its not a problem.


Its nice to know all exploration costs are also recoverable with our $6m 3 year plan.

The Group can recover the following
costs in accordance with the PSA:
• all direct operating expenses of the
Gedabek mine;
• all exploration expenses incurred on the
Gedabek contract area;
• all capital expenditure incurred on the
Gedabek mine;
• an allocation of corporate overheads –
currently, overheads are apportioned
to Gedabek according to the ratio of
direct capital and operating expenditure
at the Gedabek contract area compared
with direct capital and operational
expenditure at the Gosha and Ordubad
contract areas; and
• an imputed interest rate of United States
Dollar LIBOR + 4 per cent. per annum on
any unrecovered costs.
Unrecovered costs are calculated separately
for the three contract areas of Gedabek,
Gosha and Ordubad and can only be
recovered against production from their
respective contract areas. The total
unrecovered costs for the Gedabek
and Gosha contract areas at end 2017
were $94.6m and $21.8m respectively
(2016: $99.8m and $21.8m respectively).

[mattjos] 08/6/2018 10:42

I agree jim ... don't think this is anything to do with Beaufort whatsoever.
The two big sells the other day had no conditions attaching to them and so I believe were straightforward sales on the open market.

Had they occurred at 5p no one would have thought twice about it but, now the price is 9 times higher, folk are unduly obsessed about them

[lefrene] 08/6/2018 10:42

jimbowen30, One thing for sure with PWC extracting their £110 million in fee's then a lot of less than solid stock has to be sold. You sell the stuff that's the easiest and most saleable first, because above all else you want to get your fee's in. In this murky market the plebs will never know, and the Beaufort clients are going to be paying the price. The lesson from this is that you don't own your stock unless you have actual certificates.

[jimbowen30] 08/6/2018 10:28

I doubt the type of clients that used Beaufort owned any AAZ and if they did, then no more than a few thousand shares tops. They were a bucket shop, so a complete red herring to think they had any substantial amount to sell imo

[basem1] 08/6/2018 10:16

Good time to buy then.

[bumpa33] 08/6/2018 10:03

Fyi Singers have had a natural seller into them for the past few days - now cleared. Nothing to do with Beaufort, PWC etc, so I’m told.

[bleepy] 08/6/2018 09:35

Mattjos

Annual report and accounts 2017




An excellent read and no doubt you will include in the header.

Love the new look website also.

[2sporrans] 08/6/2018 09:19

and a few more for me; a tad sub 45p.

[tradeforce] 08/6/2018 08:41

Just copped another 22123 at 45.2p

[2sporrans] 08/6/2018 08:31

Only gave the annual report a superficial read yesterday but will peruse more thoroughly next day or 3.

Think it's well put together and promotes AAZ pretty effectively.
Ditto the updated AAZ website.

Hopefully will imbue new investors with a greater awareness of what is being achieved more quickly, along with enhanced confidence in the quality of the management.

For me, it's clearer to see the beyond the unremarkable headline profit figures and appreciate the true growth and value from reading the 2017 report. I mean from a reading point of view. A new/prospective investor no longer has to read through a fair number of previous reports [quarterly, ad hoc, etc] to gain the same level of understanding that reading just the 2017 report provides. Plus subsequently topping up knowledge from the very latest RNSs is that much quicker/easier

Like Matt [posted yesterday], hadn't appreciated there's additional thickener plant along with the new crusher.
Hope the commissioning is going well and soon completed.

There's going to be a lot more posted here about copper over the months to come.

[mattjos] 07/6/2018 19:18

Great article this & I don't think it is exaggerating the problems in any way.https://goldswitzerland.com/italy-hyperinflation-and-gold/

[jbravo2] 07/6/2018 16:19

Jeez. I'm not sure what you lot are on.
I really don't think its Beaufort. I suspect its just people cashing in their gains. It's not really making any difference.
The rate of share price appreciation has been by and large the same since a year ago. Look at the graph above in the thread that matt has kindly put in.
Sure it spikes up and down but the trend is our friend.
UP, UP and UP.

[lefrene] 07/6/2018 15:40

I take that view too Terropol, AAZ is perhaps one of the few AiM holdings for which they can find a ready market of scale. PWC 'will' have their fee's. Too much to ask if AAZ's broker could enquire as to when they will be finished?