Anglo Asian Mining Share Discussion Threads

[wanobi] 18/5/2019 19:58

Anglo Asian Mining Pays Maiden Dividend In 2018 As Profit Multiplies
LONDON (Alliance News) - Anglo Asian Mining PLC on Thursday said profit and revenue both ...
Alliance News
16 May, 2019 | 12:08PM

LONDON (Alliance News) - Anglo Asian Mining PLC on Thursday said profit and revenue both increased in 2018 thanks to improved gold and silver production and lower costs.
The stock was trading 7.5% higher on Thursday at 101.00 pence a share.
The Azerbaijan-focused gold, copper and silver producer said its pretax profit multiplied in 2018 to USD25.2 million from USD5.7 million a year earlier, as revenue jumped by 26% to USD90.4 million from USD71.8 million.
The company said it paid its first dividend in 2018 of USD0.03 per share.
A total of 83,736 gold equivalent ounces were produced in 2018, a 17% increase year-on-year and a record for the company. Anglo Asian Mining guided annual production of 78,000 to 84,000 ounces.
Gold production was up 22% to 72,798 ounces in 2018, while silver production also increased by 22% to 210,184 ounces compared to 2017.
Copper production decreased during the year, however, to 1,645 tonnes from 1,991 tonnes the year before. The flotation plant was mostly on planned care and maintenance in the first half of the year, Anglo Asian Mining explained.
Under the terms of the production sharing agreement with the government of Azerbaijan, the company and the government share the commercial products of each mine. The government's share is 51% of profit production. Profit production is the value of production, less all capital and operating cash costs incurred.
Bullion sales in 2018 totalled 59,481 ounces of gold and 25,394 ounces of silver, up from 43,496 ounces of gold and 18,442 ounces of silver a year earlier. The average price stood at USD1,265 per ounce of gold and USD16 per ounce of silver, both broadly flat year-on-year.
Anglo Asian Mining said it produced gold at an all-in sustaining cost per ounce of USD541 in 2018 compared to USD604 the year before.
By Evelina Grecenko; [e-mail]

[wanobi] 18/5/2019 19:57

Anglo Asian Mining's net profits surge as costs tumble at Gedabek
Mining News - Published on Fri, 17 May 2019
Image Source: Littlegate Publishing
Anglo Asian Mining PLC shres jumped higher as the Azerbaijan-focused gold miner saw annual profits surge as production in 2018 came in at the top of its forecast and sales jumped by over a third. Output in the year to December rose 17% to 83,736 gold equivalent ounces, while sales jumped 36% to just under 59,500oz at an unchanged price of USD 1,265 per oz. That helped pre-tax profits soar 342% to USD 25.2 million (from USD 5.7 million) as costs also fell to USD 541 per ounce on a sustaining basis.

Chairman Khosrow Zamani described as it as truly transformational year for the miner, which is now 'in an enviable position' to move forward. “Gedabek is now generating stable cash flow which provides funds for both investment and to pay dividends. The company's solid balance sheet and excellent relationships with banks in Azerbaijan and elsewhere means loan finance can be easily obtained if required. Together, this means the company has ample financial resources to seize any suitable opportunities that may arise.”

Strong cashflows meant Anglo ended the year with cash of USD 6.1mln and also paid out its first dividends worth in total 7c for the year.

Gedabek produces gold at one of the lowest costs in the industry, added Zamani, and the aim is to maintain this position as it extends its production life.

Anglo added it has licences over an area of 1,000 sq Km and a recent aerial survey had already identified additional targets at Gedabek and a discovery at Gosha, another of its mines nearby.

[wanobi] 18/5/2019 19:31

thanx mj, so (116,250,000,000/1.27)*2% = 1,830,708,661 / 114,390,000 = £16/share

so, we have best case £384 per share

and worst case £16 per share :-)

IF they can prove it up :-)

agreed ? :-)

Cheers
Wan :-)

oh that word IF, IF, IF but surely with AAZ it should be WHEN, WHEN, WHEN right :-)

GLA
Cheers
Wan

[lefrene] 18/5/2019 19:06

I feel that the potential Tier 1 scale here as reserves get drilled and proved up, will attract predators, it's simply too juicy to ignore. It's been de-risked, it's making very good profits, and appears to be sat upon a literal gold/copper mine potential worth 10's of $ billions. It certainly won't have gone unnoticed.

[mattjos] 18/5/2019 18:40

if they just proved it was there, mkt would value it at circa 1-3% of the notional value, pretty much instantly … that alone is worth sitting and waiting for

[king suarez] 18/5/2019 18:36

Wan,

What about the cost and time to extract it all, process it all and the tax to pay on the profits :)

If it were all just sat stored in neat metal bars in a warehouse waiting to be shipped and sold, then yes, you could say AAZ should be nearer £800 a share ;)

It's going to take many years of drilling to prove up a resource anything like that size - one step at a time!

In the meantime AAZ are adding around £20m of free cash into the bank each year (after paying dividends)... I am intrigued to see what the proposals for putting that cash to use are going to be.

[callmebwana] 18/5/2019 18:34

LOL,Wan the shares in AAZ are going to go one way and that is up, little hiccups along the way but up for sure.
Your calculations are correct but the resource has to be JORC certified. All will come clear with drilling and time.
Very happy to be holding AAZ :0)

[wanobi] 18/5/2019 17:43

AAZ weekly chart :-) looking very good indeed :-) Cheers Wan


free stock charts from uk.advfn.com

and close up daily :-)


free stock charts from uk.advfn.com

latest GAP closed for me, now just needs to bounce on Monday :-)

GLA
Cheers
Wan

[wanobi] 18/5/2019 16:57

IHT is not something I have yet considered cmb, but I was under the impression that any share on AIM was IHT exempt,,,,, clearly not from what you've said... I shall ask my accountant when we next meet and get back to you,,,, cheers Wan

just found this on HL;



Looks like you'll have to confirm with HMRC.... :-)

Cheers
Wan

[mr roper] 18/5/2019 16:56

I’ll settle for a takeout at 100 quid a share, wan. ;0)

[wanobi] 18/5/2019 16:54

thanx Bumpa, all very 'cloak and dagger' stuff then :-) LOL cheers Wan

[laurence llewelyn binliner] 18/5/2019 14:10

#Mattjos, good to read your excitement on the potential here, some readers may not be aware of the significance of a world class Porphyry deposit find, that means Tier1, and that means capable of sustaining 500K/Oz Gold a year..

The hole in the ground to extract ore from the Cleopatra deposit at Centamin's Sukari mine will be 2km by 4km by 600 metres deep to give an idea of physical scale, and they have a min 15 years LOM left on this 15M/Oz Tier1 deposit..

If there is 1 (or more) of these on Gadebek or Ordubad as indicated likely by BD and of the order of magnitude of their numbers, this is potentially 3 times the LOM of Centamin's deposit and we are in for a very exciting journey for the next decade here, it might have taken 13 years to get to this position from IPO but it has only just started to really come together from 2018..

100K/Oz a year will do for starters, heading towards mid-tier..!

From the Gadabek Heli survey, 31 Highly Promising and Prospective targets identified..., and it only takes 1.. :o)

[bumpa33] 18/5/2019 13:22

the 500 looks to be balanced by the 2x250´s, the other 2 250’s appear connected too, judging by the time stamps on the deals.

[puntogt] 18/5/2019 12:44

I have a wee bit of concern that something kicks off with Iran. Nothing that aaz can influence but... Other than that all systems go for this wee company.

[wanobi] 18/5/2019 12:37

can someone please explain the STCM trades on Friday for me, thanx, seems as though some sort of deal was done between buyer and seller for large chunks of stock, I think??? cheers Wan :-)

[mad foetus] 18/5/2019 12:10

The biggest challenge that AAZ face at the moment is choosing between an embarrassment of riches. I really hope we get a constant newsflow over the next 12 months, both in relation to exploration finds and also how they are going to lead to increased production. Getting over £1, making the life of mines transparently longer than at present (though we all know the current 6 years is simply untrue), having a pathway to production over 100,000 ozs, all to play for. I wouldn't be surprised if we got an increase in target for year either before the AGM or with Q2 results. But I really want to see the board keep their foot on the pedal.

[mattjos] 18/5/2019 12:07

Importantly, we have the Flotation plant now capable of being run entirely standalone from the Agitation plant in readiness for high sulphide gold/copper ore that is most likely to be present in the porphyry systems.
Most people recognise that we could ideally do with finding another Ugur type deposit sometime during the course of this year …. & the latest maps from the company have already referenced "Ugur 2". With luck it will be proven viable and involve little more than an extension to the existing Ugur 1 haul road.

As we clear away the soft oxide ore at Ugur 1 & are able to drill deeper, will it follow the pattern of Gedabek and prove to have sulphide ore below?

The potential is truly mind-boggling and the company has repeatedly proven its ability to act quickly & profitably when opportunities are identified .. the next 6 months of exploration during the dry, warm weather are, i believe, going to prove even more transformational that anything that has gone before.

[mr roper] 18/5/2019 11:56

Salivating at the prospect of that coming true