Anglo Asian Mining Share Discussion Threads

[mattjos] 11/1/2016 18:16

No idea Brasso, sorry

[cyberbub] 11/1/2016 18:05

Net debt dropped by almost $2m since Q3. I think that rate of fall should start to accelerate in 2016, always assuming the POG remains reasonably favourable...NAI

[brasso3] 11/1/2016 17:28

Matt

Any idea why the RNS do not appear on your thread?

[drdre] 11/1/2016 17:13

Which RNS Mattjos? Can't see one?

EDIT: apologies, just seen them.

[brasso3] 11/1/2016 17:12

11 January 2016

Anglo Asian Mining plc

Director loan and Company net debt

Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, announces that Reza Vaziri, President and Chief Executive Officer, has agreed to extend his loan facility to the Company. The Company also provides a summary of its net debt position at 31 December 2015.

The amount of the loan facility from Reza Vaziri is $4.0 million and the term of the loan is until 8 January 2016. The amount currently outstanding under the facility is $3.9 million. The extension of the term of this loan is currently being renegotiated.

The Company had net debt at 31 December 2015 of $49.2 million, a decrease of $3.2 million since 31 December 2014

Further details of the extension of the term of the loan from Reza Vaziri and Company net debt will be provided in the Company's Quarter 4 and Full Year 2015 update which is expected by 15 January 2016.

[mattjos] 11/1/2016 16:13

no surprise in that RNS but debt is starting to fall now

[mattjos] 11/1/2016 16:00

stupid spread on it now ahead of the update this week

[jbe81] 11/1/2016 12:13

Nice to see other goldminers moving up, just need some buying for aaz

[mattjos] 10/1/2016 13:30

This is the stated Group Strategy:"Anglo Asian Mining PLC's strategy is to utilise its first mover advantage and its highly experienced board of directors and management teams in-country experience to build a leading gold, copper and silver producer in Azerbaijan and Caucasia. "All three of these are currently sat at multi-year price lows so, surely some opportunity in the space will present itself, particularly when the state must be pretty keen to diversify its income away from oil & continue to build its gold reserves as best it can.

[mattjos] 10/1/2016 13:22

Not me. Am not a wiki author. Just research, research, research

[jbe81] 10/1/2016 13:03

Matt have you been editing the last line of the CHODVAR wikipedia page?!

"The Azerbaijani Environment Ministry has estimated that the Chovdar mine contains around $2.5 billion worth of gold and silver.[2]"

[mattjos] 09/1/2016 12:28

This shows the pressure the Az central bank has been under and why the removal of the $ peg was inevitable:


The last para: "According to Trend news agency, a black market for foreign currency has emerged in Azerbaijan, in which the dollar trades at AZN2 to AZN2.2. The official exchange rate is AZN1.56 to the dollar." suggests the Manat will continue to come under pressure throughout the course of 2016, particularly if the oil price remains subdued and the Fed continues on its course of circa 4 further 0.25% rate rises over the next 12 months.

The first 35% Manat devaluation at start of 2015 was judged to have a $6.5m benefit to the company's cost base.
They are yet to report on the expected benefits of the latest 50% devaluation. I assume some of this depreciation is going to be offset by the inflationary impact on the Az economy but, it would seem reasonable to assume that this latest depreciation will result in circa $10m savings.
FY14 Wages & Salaries were $11.5m & that will have increased with the introduction of the Flotation Plant & pressure for wage rises ... lets say this rises by worst case $2.5m, giving a net saving from depreciation for FY16 of a further $7.5m.

The Groups finance costs in FY14 were $5.5m ..... its total cost of finance for FY16 will have risen as circa $30m of the $50m debt is based, in part, on 3-month LIBOR which is on the rise.
I assume that this latest depreciation will, near as damn it, give savings equivalent to total Group Finance costs for FY16.
Any further depreciation of the Manat thru 2016 looks likely to act as a natural hedge to further rises in 3-month LIBOR .. both as a result of any further US interest rate rises.

Reza's $4m loan was due payable on 8th Jan 2016 so, I would expect the next news piece to also contain commentary on him rolling that debt over for a further 6-12 months.

[jbe81] 08/1/2016 16:45

Or the 14th or the 19th, soon anyway, just don't want newcomers panicking if its not the 15th!

[brasso3] 08/1/2016 15:07

I would not bet against the Friday 15th January based on the previous years FY results:-

14/01/2015
10/01/2014
20/01/2013

At worst it could be Monday 18th January.

[jbe81] 08/1/2016 14:53

dont think that date is set in stone Brasso

[brasso3] 08/1/2016 14:16

5 more days until next update...

[mattjos] 08/1/2016 10:56

jeansey ... I have no idea. Chovdar has always been shrouded in secrecy but, then subject to some investigative journalism that revealed the award of the licence & the shareholding of AIMROC & that the operators were not exactly experienced in gold mining.

A lot of money was spent on getting Chovdar to the point of production:

Look at pages 42-44 of this presentation by the contractors Proccea (3,000t/day processing plant)

&


If what was reported earlier on this thread is correct and still the case, namely that Chovdar is now standing idle and was not able to run profitably .... well, that is a big asset not earning its keep & there must surely be some desire/intent to find a way to make it work. All that plant and equipment sat there doing nothing. Common sense alone suggests they don't just let it corrode away to zero value!

As AAZ are very fond of highlighting, they are always looking to exploit their first-mover advantages in the country. Think I'd be at least trying to suggest to the AZ government that we have the only experienced in-country team that have gone through the learning curve (at Gedabek) of understanding the complex local mineralogy & being able to profitably process it.
Who knows? Perhaps its the ownership structure which is the stumbling block but, would be plain daft to let that stand in the way ad infinitum.

[jeanesy] 08/1/2016 10:34

Do you think that they might open up Chovdar?
All very quiet on the share front today after yesterdays rise in volume. Still another day closer to news next week.

[mattjos] 08/1/2016 10:28

Manat still falling relative to the USD. The oil price must be crucifying the Az government revenues.
They have said the Manat will float against a basket of EUR & USD .. both of which are proving relatively strong of late, particularly against Emerging Market currencies.
I think we'll see yet another devaluation in the Manat this year, particularly with Saudi seemingly determined to pump oil as fast as they can, now they can see that the accelerating demise of the IC-engine automobile this decade.

The pressure is really now growing on the Az government to quickly diversify its source of revenues outside of just oil else they will be in trouble as a nation.
AAZ is still the only productive Gold miner in the country and is surrounded by Gold properties that it has the experience to open up.
I feel sure that there will be some news on this front this year .. the longer oil stays at this level, the greater the currency and the government revenues will come under pressure

[s0lis] 08/1/2016 07:59

Matttjos

Just read your Mattjos 22 Dec'15 - 21:27 - 894 of 992

Don't have the clarity of your graph, but worth a looksee as appears similar is BPC. This is on the move and I should add that I have a small holding.

[cyberbub] 07/1/2016 22:55

Yeah I don't want to jinx it... probably famous last words... sigh...

[brasso3] 07/1/2016 21:53

Lets not be greedy! At current prices we are probably clearing $500 an ounce in profit!

[cyberbub] 07/1/2016 21:47

If gold were to break $1200 on a consistent basis then I could see us at 20p quick sharp... always assuming production goes as planned... which is by no means guaranteed...$1500 later this year could see us back to 70-80p IMO... that's probably too ambitious... nice to dream though... :-)GLA NAI

[mattjos] 07/1/2016 21:04

its worth reading and is short ... the last sentence is one that might soon be uppermost in a whole lot more minds: