Anglo Asian Mining Share Discussion Threads

[jbravo2] 06/5/2020 07:39

Addressing a few points from yesterday and a request from k65.
Yes the company is aware of the current mood of at least some of the posters here (I include myself in that group) and aware of the desire for some news from them.
News is coming but I don’t have any exact timetable as there are clearly restrictions which are currently slowing down work.
Eg Look at all the pics of drilling rigs in the header and then try to think about how much it is slowed by distancing.
On the plus, the most important thing, the mine continues to produce.

[wanobi] 06/5/2020 07:35

aha, thanx Mr R, well Paul certainly has form for that, cheers Wan :-)

[wanobi] 06/5/2020 07:34

MWG - RNS - The COVID19 public health crisis may have reached its first wave peak, but the next stage of managing future risk of spreading is the early monitoring of water and wastewater. Demand for equipment and our reagents continue to increase and we are delighted to have access to increased production volumes to allow us expand and the integrated AI development programme that enhances the Microtox value, improving revenue per client from existing equipment."

Cheers
Wan :-)

[mr roper] 06/5/2020 07:33

Wan, I always associate broker with a placing. No idea if txp is looking to raise though.

[wanobi] 06/5/2020 07:32

AVCT - results RNS,,, what can you say, but, cover your eyes, I'm sure it all makes total sense in the pharma world :-) LOL Cheers Wan :-)

[wanobi] 06/5/2020 07:27

TXP - RNS - 06 May 2020 - Touchstone Exploration Inc.

Appointment of Joint Broker

CALGARY, ALBERTA (May 6, 2020) - Touchstone Exploration Inc. (TSX / LSE: TXP), an oil and gas exploration and production company active in the Republic of Trinidad and Tobago, announces that Canaccord Genuity Limited has been appointed as Joint Broker with immediate effect, working alongside the Company's existing Nominated Adviser and Broker, Shore Capital.

Do these things usually carry any significance ?

Cheers
Wan :-)

[wanobi] 06/5/2020 07:26

good summary of JSE here, GLA Holders, Cheers Wan :-)

The Jadestone Energy share price could go lower but it has the strength to ride out low oil prices - buy.........Gary Newman...Today


'Currently a lot of private investors seem to be looking around the oil and gas sector for the most bombed out stocks that they can find, in the belief that these will offer the most upside on commodity prices eventually recovering. The big problem with that though is that if commodity prices do stay fairly low for a prolonged period of time, as seems likely given expected demand levels even when things do start to recover plus the huge amount of oil sat in storage currently, then some of these companies may never actually recover...

I can see why it is tempting to buy some of the producers that have been hit hardest, as on the last big oil price drop a few years ago these tended to be the shares that bounced back the most, but this time around I’m not convinced that we will see prices recover quite so quickly, and those with high levels of debt and reliant on much higher oil prices, could find themselves in real trouble. It makes far more sense to me to pick out a company that looks strong enough to weather the storm and which had been performing well prior to the arrival of Covid-19, and Jadestone Energy (JSE) is one of the few that fits the bill and which I would consider buying as a longer term investment at the moment.

With a current share price of around 48p giving a market cap of £220 million, and having 'only' seen its share price halve since the highs that it hit at the start of the year, some will argue about it being cheap. But I would counter, pointing out that its production is strong and set to increase, hedging is decent, it has plenty of cash in the bank, has cut its Capex costs and despite the current situation is still confident of paying a maiden dividend this year.

Currently production comes from its fields in Australia - Montara and Stag - and they achieved a combined average of over 13,500bopd in 2019, more than triple the previous year. In addition to those assets, the company acquired a 69% stake in the Maari offshore project in New Zealand in late 2019 for $50 million, which equated to a price of $3.61/barrel of 2P reserves – the company effectively took over the field from January 1 2019, in economic terms, but approval by the government for the completion of the deal isn’t expected until later this year. It may be that asset now takes slightly longer to pay back the investment than originally anticipated - payback had been forecast in less than 12 months - but it still seems like a decent deal.

As at the end of March the company had nearly $110 million in the bank, with net cash of over $72 million, and as part of its measures to conserve that it recently announced that it would be cutting back on capex and delaying some of its drilling, none of which was mandatory. That makes good sense to me as there seems little point in investing that money now and producing more oil at a time when prices are very low. As a result of that, it has cut Capex for 2020 by around 80% to $30-35 million, of which over $15 million had already been spent during Q1.

That will have some impact though on production for the coming year, as that work had included infill drilling in Australia to maintain existing levels of output, and it will now mean that it is expecting to produce 12,000-14,000bopd. But in 2021, with the addition of Maari once that deal completes, that is expected to grow by circa 25%. Reserves remain strong, with 41.8mmbbls of 2P reserves in the Australian assets at the end of last year, rising to 54mmbbls once you include Maari.

Elsewhere, it has gas fields in Vietnam at Nam Du and U Minh which were due to be developed and $90 million of capex had been ear-marked for this, but it wouldn’t have produced any revenue until late 2021. So that has now been put on hold, plus the company is still awaiting approval of its field development plan there anyway.

In terms of its hedging, the company is also in a decent position with around a third hedged at an average of $68.45/barrel through to the end of September. Aside from that, the company has managed to reduce operating costs to around $20/barrel, or around $27/barrel when you take into account its other costs. Obviously oil prices are currently very low with Brent at around $28/barrel, and having been below $20/barrel briefly, but it is also worth remembering that the type of oil produced from Jadestone’s fields has been generating a substantial premium to Brent – Stag managed $21/barrel and Montara $7.6/barrel premiums in early March (Brent would have been trading at around $40/barrel at the time the company announced this).

There’s not much point dwelling on the past financial performance as things are now very different to where they were in 2019, but last year the company did manage to generate revenue of $325 million, with a $73 million pre-tax profit and net operating cash flows of $177 million – once you strip out debt repayments plus the acquisition that falls to around $23 million, but has substantially improved both the balance sheet and future production as a result.

Despite the recent falls in oil price, the company is still planning to pay out a maiden dividend this year and, although the exact amount is yet to be finalised, previous suggestions point to it being a decent yield. In terms of the balance sheet, there is nothing which really concerns me as by far the biggest liability on there is future decommissioning, but that isn’t expected to occur until 2033 for Montara and 2036 for Stag.

Overall, I certainly wouldn’t bet against the share price falling lower, especially if the oil price and/or the markets in general take a tumble, but from these levels I can see plenty of upside once the oil market recovers, as it always seems to do after the bottom of the cycle, and often quite spectacularly if the past is anything to go by.

You don't need to buy in right at the bottom, just at a price which offers value and a good chance of a profit in the future.'

[wanobi] 06/5/2020 07:25

many thanx for head up, GAN, pogue, will look at that one later on today for sure, cheers Wan :-)

[wanobi] 06/5/2020 07:23

thanx for posting oakey, great to hear of your success and long may it continue for you :-) Cheers Wan :-)

thanx for the heads up PXC,,,, jeanesy, Cheers Wan :-)

[wanobi] 06/5/2020 07:21

Good morning all, Good luck and the very best health today, cheers Wan :-)

[pogue] 06/5/2020 07:21

My post yesterday regards my favoring picks and shovel suppliers in a gold rush as in the the small pharma CV19 gold rush made me realize people maybe interested in a similar type company but in the gambling sector that I mentioned here a while back.

GAN went to the NASDAQ yesterday and off AIM as all its business is in the US this will give it greater exposure to the market it is in. It had a good start adding to the price it came of AIM and thus maintaining its meteoric rise since the CV19 crash as it was at an all time high when it left the UK. There was a share consolidation of 4 to 1 to go on the NASDAQ plus a small remainder of coppers. GAN UK share price and US

What it provides is the back office stuff for the online gambling industry and its a leading supplier. The thing is America is just opening up to sports betting online as it was illegal before so you have a continent of people just waiting for the joys of betting who will score next whilst watching their favorite sport. They are also in the online casino space making deals with casino owners in different states. As you may have noticed sports betting is a bit restricted just now due to their being no sport and this stopped me from putting even more cash in it but it has proved me wrong and has motored on. Well worth looking at as there is a big market out there for it and it has only just arrived in the correct place to get recognized and there are still states who have not passed the legislation to legalize online gambling.

All my own opinions, not a recommendation to buy, do your own research oh and my favorite, place your bets :0)

[e43] 06/5/2020 06:57

Tyou MF ,yes enjoying this well informed and polite thread.

[mad foetus] 06/5/2020 06:51

E43If you have any questions do ask away. This has always been a friendly and informative board. A few of us are a bit impatient right now as we feel the share price should be near double what it is now...but hopefully the rerating will begin shortly. Last year the share price went from 69p in April to 130 in June and 170 in August, so AAZ has form in outperforming over the summer months!

[mad foetus] 06/5/2020 06:31

Matt, Jbravo and Friendzaren all went out around 18 months ago from memory. The pictures at the start of the thread were from the trip. I imagine the bars of Gedabek still refer to them fondly.

[e43] 06/5/2020 06:15

Thanks for that info Matt,as a 'newboy' here ,when did you go out there to the sites?

[mattjos] 05/5/2020 22:22

Have been reviewing Gedabek on Google Maps again this eve ... the images seem to have been updated since our visit.A lot more 'roads' seem to have appeared to the East, North, South & a few to the West of Ugur ... several seem to lead nowhere in particular others than to a circular area which may be/have been used as a drill site.The company does look to have been quite busy, fanning out from the Ugur vicinity ... which makes sense. An ore deposit does not 'materialise' itself .. there has to be some sort of feeder intro it, be it volcanic or alluvial.Ugur did not even require blasting .. it was a self-digging ore, which might indicate it was alluvial in nature and deposited as a consequence of an ancient water course. If so, the ore washed out from somewhere nearby & therefore sensible to try and trace back it's origin because the early deeper drills indicated it was not open at depth.So, where the hell did it come from? The current topography there would suggest a North, West or South source as these compass points are all higher .... East is 'downhill' & therefore also worthy of investigation as more gold may have travelled further downhill but, given the ore grade, it might be best to find the source as it could well be a big one.It must be frustrating to realise that you're sat on the stuff all around you but, realistically you cannot 'process' the entire area.I'm sure there'll be other rich pockets around .. just have to identify the most appropriate ones.

[podgyted] 05/5/2020 22:10

Both are reporting in May - may get some momentum.

[brasso3] 05/5/2020 21:57

AAZ and HUM do seem to be lagging most other AIM gold miners.

[crazycoops] 05/5/2020 21:55

About 102p judging by current market logic :)

[mad foetus] 05/5/2020 21:44

Imagine if gold was $1900. What price AAZ then?

[brasso3] 05/5/2020 21:42

Gold, BTC and Pharmas with no revenue are the place to be now. :)

Hopefully silver will make a move soon...

[brasso3] 05/5/2020 21:38

Took a small short at 2884.

[bumpa33] 05/5/2020 21:35

Nasty into the close on the S&P, all the pumping yet it came apart in the last half hour, and a gravestone Doji to cap it off.

[mattjos] 05/5/2020 21:04

Markets are all getting carried away upwards on hopes of the great 'unlock' .. but, i think the 'unlock' is when the true horrors of what damage has been done to the economy & to the fiat currency base will become apparent to the masses + just who the hell is going to be buying all this new govt. debt? The Fed, BOE, BOJ etc. surely can't shoulder it all & I don't think China or Russia are going to be head of the queue.We are increasingly learning of early or first virus infections being detected 8-10 weeks before it became a problem in countries.As soon as we 'unlock' the advantage will immediately swing back to the virus & a second wave seems an almost 100% inevitability to me ... but, maybe not become apparent until Sept/Oct. If it flares up again then in Europe & USA and the lockdown has to be repeated then, fiat currencies are going to really start the last stage of the journey to worthless.The summer 'lull' may well be the last chance to pick up gold under $1,900 before it truly takes off Autumn/winter this year and into 2021