Anglo Asian Mining Share Discussion Threads

[bozzy_s] 12/7/2018 13:26

^ Re above, I've found it at last!

Diane is referencing last year's interim results. Operating cashflow before movements in working capital $8,683

Could've saved me a bit of time and answered the other posters' questions yourself Diane!

So just to clarify, H1 2017 operating cashflow before movements in working capital $8,683 thousands.

H2 2017 operating cashflow before movements in working capital $32,200 - $8,683 = $23,517 thousands.



Oh I see why you didn't answer, #67 is pretty embarrassing! Whoopsie. Perhaps check facts before laying into someone? That's bloody awful actually.

[mattjos] 12/7/2018 12:27

13 years since AAZ came to market, issuing 26m shares at 77p to give a total of 99.2m shares in issue.

Now, after all this time, we still only have 114.2m shares in issue.

Try go find another AIM explorer/miner that has suffered such minimal dilution over that same time frame. most are actually bust or have moved on to some other opportunity as the first one failed.
Then ask is other company now profitable? Are they going to pay a maiden dividend this year?

There just is not another like this one as far as I know. This fact in itself deserves a premium rating to the rest of the dross on the market

[mattjos] 12/7/2018 12:16

you could buy this whole company today and recoup your purchase price in under three years from its cash flow!! think about that just in financial terms for a moment and then also consider how long it has taken AAZ to put together its whole operation in Azerbaijan (the kit, the people, the knowledge etc) .. in any business sense, this is too cheap

[mattjos] 12/7/2018 12:09

Reza & the BOD have played it right .. they maxed their debts when the US interest rates were nailed down at zero (OK, we pay more in that part of the world) and have cleared the bulk of the debts just before US Rates have started rising.
Many, many other companies in the Emerging Markets have not cleared their $ debts and are now in trouble as their domestic currencies are hammered lower and their interest rate burden rises coupled with a US$ liquidity problem in these parts of the world.

Our sales are in US$ & we could (if we wished) clear our debts today so, as compared to many other companies, we are in a great position.

Most folk don't see to understand just how well Reza & co have played this over the last 5 years. We did not take on debt to buy back stock or some other wheeze .. the debt was specifically to grow the size of the company, to lower costs and increase profits. Now we are going to see the benefits of that investment.

The current mkt cap is total nonsense .. its insanely cheap

[bumpa33] 12/7/2018 12:08

Exactly, at a quid you could give question over the price in relation to recent Au movements - at 42p though we’re still ridiculously undervalued regardless of those movements...

[celeritas] 12/7/2018 12:04

We have been over $1200 for some time now which for me has been a major bonus.
Had AAM been over 100p then I would have said yes, maybe follow gold prices round to an extent but at 42p it makes no sense.

[bumpa33] 12/7/2018 11:53

Sure recent gold price action - in relation to dollar strength over trade war fears (a short term anomaly in my view - $ strength that is) has played its part in recent weakness.

the step change in the company’s fortunes though far outweighs these concerns in my view.

[2sporrans] 12/7/2018 11:11

Thanks for that jbe.

Although one can't divine the reason[s] for any particular holder to sell, what are the -ve's for AAZ at this time?
The only ones that I can discern are these:

1. Lingering doubts about the resource/mine life and a very pessimistic expectation for the $6-mn-pa exploration programme.
2. Concerns related to the move towards a higher % of copper production from now through H2 and 2019 and the margin in prospect for the Copper concentrate production stream. [The current margin on Gold production is ~$600-$650/oz but what about the Cc?]
3. Most obviously, the fallen prices for gold and copper [back to a year ago] and moreso, the fear of further, prolonged falls - again most obviously related to 'trade war' impact upon econ. growth.
4. Unease over regional instability, though hard to see this igniting within Azerbaijan itself, not least given the buoyant Gas/oil revenue flows.

While most here will dismiss all of the above, it's worth examining downside factors, if only to appreciate the undervaluation to extent they manifest in only a marginal way or not at all.
I've been adding steadily the past several weeks.
Think the recent share price Angel note is likely to prove a pretty good guide for next year or so + the AGM feedback suggests it's a conservative take by mgt, relayed to the broker.

[king suarez] 12/7/2018 11:05

I imagine that the recent price weakness is also due to the fall in gold/copper/silver prices too? (or perhaps fears the metals may have further to fall?)

[mattjos] 12/7/2018 11:02

yes, seems bizarre but, was just the same at 10p, 20p and 30p & now at 40p. These round number figures always seem to act as barriers/support areas for consolidation. Frustrating as it may be, they do keep building on the underlying support for the stock as new buyers see the opportunity and take out the sellers.

Not long go now before the Q2 update and the first opportunity to see how we are going with the newly enlarged production capacity

[celeritas] 12/7/2018 10:54

The way its going we'll have more cash that the mkt cap by this time next year.

[celeritas] 12/7/2018 10:50

I know its difficult as it goes against ingrained human nature but the best time to buy is when we have a seller. These sellers have popped up at various times over the last few years and never usually last for long.

[mattjos] 12/7/2018 10:40

Yup, prospective 5% yield and the company now into its seasonally strongest half of the year. Good enough for me to add some more today

[jbe81] 12/7/2018 10:28

It’s a large seller in the auction driving the price down

[2sporrans] 12/7/2018 10:27

Surprised me too Jeanesy, especially this close to Q2 results.

Bagged some at 41p having just looked in.....
Checked at the open and first 15 or 20 mins and it looked like another very quiet day, devoid of much price move if any.
From what can see, a flurry of small/modest sells was enough to shift the prices maybe 7 or 8%!
Those alert enough [or with limits placed] to grab 40.5 must be pleased.

For that price a 2p dividend is near as damn 5%.
Given the divi is sustained and grown even a little over next few years, this will both attract new buyers and sway towards a hold rather than trade approach, as well as provide a tidy income.
Ever more rewards for the patient.

So, guess the Q2's will come out next Tues/Wed/Thur.

[jeanesy] 12/7/2018 09:07

looks like i was a bit too eager, can now buy at 40.5p !! Never thought we would see 40p again!!

[jeanesy] 12/7/2018 08:32

Decided to buy a few more at 41.5p, even though isa now full, so building a few to bed and isa next year !

[catsick] 12/7/2018 08:23

I asked at the agm what a reasonable proportion of free cashflow would make sense as a div but they didnt want to comment beyond pointing out that the board own a load of shares and they are as keen as anyone to have a good payout, my guess is 2p for this year after the share premium acct is made into distributable reserves and then maybe rising to 4p next year if targets are all met ...

[jeanesy] 12/7/2018 08:18

Can currently buy at 41.5, has to be a bargain at this price again surely !

[king suarez] 11/7/2018 14:28

Just wanted to check I'm not going mad! Thanks..

[celeritas] 11/7/2018 14:21

KingS, DS is a new handle created in April. Best to just ignore the total tripe he or she spouts.

[friendzarin] 11/7/2018 13:58

Azerbaijan prepares the AZN 150 bn worth non-ferrous metal roadmap - Abc.az





July 10, Fineko/abc.az. The cost of metals in the bowels of Azerbaijan is estimated at AZN 150 bn.

AzerGold’s chairman Zakir Ibragimov has stated that the Company applies a complex approach towards development of promising fields of non-ferrous metals on the territory of Azerbaijan and their commissioning.

"Development of a roadmap on extraction of non-ferrous metal began with this purpose. The document will cover bringing into conformity the data available in the archives from the Soviet times with modern standards, including their transfer into digital format, new calculation of mineral resources on the basis of international standards, development of a plan on operation of the fields. Detailing will contribute to more sustainable and efficient management of fields from economic and environmental angle," Ibragimov said.

He says that cooperation with the Ministry of Economy, the Ministry of Ecology & Natural Resources and other governmental agencies is underway for these works.

"According to preliminary estimate, total cost of metals in the bowels of our country exceeds AZN 150 bn," Ibragimov said


Not sure where Azergold is going with all this upbeat big picture stuff.Meanwhile what exactly is happening at Chovdar.

[king suarez] 11/7/2018 13:45

Is it possible you are looking at the accounts of a different company? This is Anglo Asian Mining. I don't see that figure in the 2017 report and accounts I am looking at...

hxxp://www.angloasianmining.com/scripts/php/rns_viewer.php?id=27510934