Anglo Asian Mining Share Discussion Threads

[mattjos] 20/1/2016 23:05

District Sized ... that was how Reza described Gedabek North.

Does anybody know what is a District Sized gold deposit?

[cyberbub] 20/1/2016 16:19

It's interesting that the 'highest volume' table on Advfn seems to indicate that despite the sharp drop, today is not a particularly high volume day across the markets. Hopefully many people are just sitting on their hands and not panicking...

[cyberbub] 20/1/2016 14:43

If gold were to stay above 1100 for a bit and start making a run for 1150 or even 1200 then I think that could be the catalyst for a breakout here... an extra $5-6M per year would really settle any nerves about cash flow IMO... let's see, if any of us had a crystal ball we would all be rich as Croesus! (Quite an apt name for gold investors LOL)Good luck all genuine holders here.

[mattjos] 20/1/2016 14:07

Gold production this year should be an all time high for the company.
So too Silver & Copper
Are we able to project beyond that at this stage? There is more of Gedabek unexplored than explored & lets not forget the last exploration update had them suggesting Gedabek North was a 'town' sized asset .. or some such word like that.
CAPEX has consumed the cash this last 12 months ... they will get back onto further exploration at Gedabek later this year, let alone anything else they may be working on in the pipeline

[mattjos] 20/1/2016 14:00

Gold now starting to correlate correctly with the fear and concern in the marketplace.
Currencies around the world are in turmoil & its getting worse. Even GBP is all over the shop ... let alone the Emerging Market currencies.
More and more folk are going to be persuaded that parking their money into Gold (physical or ETF) is a better way of trying to protect their personal wealth and spending power than to keep hold of their local currency .. particularly if they are an oil exporting nation.
They might try and rush to the US$ but, in many countries now they are being constrained in their access to that currency.
The Rouble is getting slaughtered and that will inevitably bleed over into the Russian satellite nations. The Canadian Loonie is also in freefall.
Rampant inflation in foodstuffs is already evident in Canada & Russia
USA wont be able to stay with an elevated currency, relative to all others for too much longer .. the general trend across the world is a constant round of currency devaluations.
Folk have always thought of Gold as a hedge against risk ... there seems to be risk springing up everywhere at every turn & getting worse.

[zhockey] 20/1/2016 13:55

Yes but since that figure was calculated they had the troubles with extraction.

[cyberbub] 20/1/2016 13:49

The gold reserve is over 600k oz, that's not resources it's reserves. So that is 8 years gold production left by my simple maths?

[bleepy] 20/1/2016 13:25

Bill Morgan spoke of expected targets for next 2/3 yrs stating 72k-74kozs Au or better.

Expansion of flotation mills for copper,zinc etc, makes commercial sense given the quantities found in the mined ore.

No mention of decrease in gold long term. Btw, the huge increase in silver recovered is another bonus to add to the copper and zinc.

[on target] 20/1/2016 13:25

"They have clearly stated they are moving away from Gold"

They have stated they are diversifying by increasing the production of other metals other than gold (copper, silver, zinc), but I don't see how that's the same thing as moving away from gold.

[jbe81] 20/1/2016 13:07

zhockey, granted it is unclear. The line from the company is

"establishing Anglo Asian as a leading mid-tier gold and copper producer in Caucasia."

So both are important. The is in my opinion a lot more gold at Gedabek, a lot more drilling to do, the company has stated gold will be a bi-product of producing copper for some of the ore. But they are producing gold from Gosha and hopefully they are looking at other sites as part of establishing Anglo Asian as a leading mid-tier gold and copper producer in Caucasia. But for now I see gold as the most important aspect. As Ontarget illustrates.

[zhockey] 20/1/2016 12:52

On Target,

They have clearly stated they are moving away from Gold and current production levels will be maintained for 3 years only. They need to be more specific on what the long term levels will be, however my take is that after 3 years Cu will form the bulk of Gedebek production with Au becoming a biproduct. Of course exploration may change this profile and they may start up another mine site focussed on Au.

[brasso3] 20/1/2016 12:38

I think we will still be predominantly a gold producer for the next 5 years. The copper and silver just give us diversity and useful cash flow.

[on target] 20/1/2016 12:28

Gold sales were c.95% of revenues in Q4 (copper 5%). Yes over the next year the copper % is expected to grow as copper production ramps up (and also hopefully the copper price increases), but afaik gold will still form the majority of revenues for the foreseeable future - and so very justifiably the focus!

[zhockey] 20/1/2016 11:08

I think holders should focus on Copper as that is where the company see the medium/long term of Gedebek.

[jbravo2] 20/1/2016 10:26

Gold flying?
Not really. It needs to hit 1300 before we can say the downtrend since 2011 is broken and we're a long way from that. Look at any 5 year chart and you'll see gold isn't really flying.
The current turmoil in markets shows no signs of abating though and eventually it will become unstoppable. A self fulfilling prophecy. Despite everyone saying they don't really fear another crash that is of course what they all fear.
Can't really see China turning the corner anytime soon. Too much debt. Too many businesses closing now. Greece still isn't sorted. American debt ceiling just goes up and up.
You'd think the gold cycle has to change sometime but frankly I've learnt to be very patient.

Whilst all that MAY be good for gold, total economic collapse and civil unrest certainly wouldn't be. No one can guess what would happen if the leader of Azer was deposed for whatever reason but there aren't (m?)any examples of a good outcome.

As an aside, a bit of shouting about the manat isn't going to help the share price to any meaningful degree in the short term. It needs sector sentiment to change or a significant change in profits and net debt to be demonstrated. That might happen by mid year, depends on the plans!

[captain_crash_and_burn] 20/1/2016 09:34

Someone on this board pointed out Shanta Gold yesterday. just been having a look, and it looks like a great opportunity, what are other peoples thoughts on that one (SHG) Looks like AAZ in 6 months times.

[jbe81] 20/1/2016 08:33

Gold flying this morning, hopefully it keeps it up, a sustained rise over 1100 should generate some interest.
Hopefully you are right Matt, we get a game-changing rns and Cantor are short!

[mattjos] 19/1/2016 23:47

The AZ govt passed some new laws today to try & help shore up the Manat & encourage and incentivise entrepreneurs.The govt needs companies like AAZ now, more so than ever before. The oil price is having a very negative impact on the country generally.We are bringing US$ into the economy, providing employment in a non-oil sector, putting gold into the central reserves and paying interest into the national bank on loans!The govt might be wishing we were 10x the size we are right now given the current financial circumstances.Reza will be in a really good spot now to negotiate an opportunity to scale the business upwards on the basis of his personal political network, the success of the company & what it offers to the govt. & the economy of AZ .. They badly need non-oil sector success stories right now & AAZ must be one of the bright spots. Come on chap!

[cyberbub] 19/1/2016 23:36

That was a genuine question BTW - not trying to catch anyone out.

[cyberbub] 19/1/2016 23:03

Terropol, you deserve a lot of respect if you have been in AAZ for 11 years, that's the longest I have ever seen anyone invested on Advfn... I hope you have taken the chance to average down recently...

I have something I hope you can assist with. I never managed to find (and still can't), any reference to the AISC for AAZ's gold (or gold-equivalent) production. It isn't even mentioned, as far as I can see, in the 2014 full accounts.

If you look at Shanta's Q4 & annual production report published today (19th) they make a point of stating their AISC. Obviously this will vary depending on total production, but still provides a reasonable guide to gross profitability.

Do you have any insight into why AAZ don't publish their AISC?

Thanks.

[terropol] 19/1/2016 22:09

Keep cool guys.
We have the man in charge with close to 30% share of the company. I am sure he would like the shareprice to go higher.
In this market there are not may people with fresh money...we need market sentiment to change.
The company is doing all it can to point in the right direction, with the ore complexity they had to deal with, it confused all parties.
We are now back on track, it will get better from now on.
The brokers did put a note out to the market a wile back stating the Manat devaluation would help reduce all in costs.
Like i said before; we are partners of the AZ government... There is no benefit in the relationship to shout about Currency devaluation......
Remember not all country's have the same approach to politics....
Nice to see new people on the BB.

[cyberbub] 19/1/2016 19:16

If we were lucky enough to see a consistent gold price around $1200 then that would be another $5-6M net p.a. straight to the bottom line... sigh... will it happen? GLA

[hedgehog33] 19/1/2016 19:02

Fantastic thread guys... though FWIW.. I agree with zhockey.

A solid slow burner.. bit too much debt at the moment to be blowing their trumpets and raising the company profile above the parapet creating an erratic feeding frenzy.

Reza happy extending the terms of his personal loan and everything in the garden appears rosey, though like all decent flourishing and rewarding gardens they need a little time to mature.

[brasso3] 19/1/2016 18:02

The Manat was above 1.6 to the US$ at one point today.