Anglo Asian Mining Share Discussion Threads

[unionhall] 10/5/2016 11:19

"AIMC get 67.5 + (37.5x0.49) = 85.875.

Indeed, but from that AIMC will have to pay the 67.5 of Opex leaving them with 18.375m or 49%.

[jbravo2] 10/5/2016 11:10

I'm not really sure I follow you Union.
This is how I see your example.
$105m sales, no debt left, no carried forward losses or outstanding opex etc etc etc, 67.5m opex

AIMC get 67.5+(37.5x0.49)= 85.875m
MENR get 37.5x0.51= 19.125m

The 75% of revenue is simply the max amount each quarter that can have opex, debt etc etc offset against it. If the amount would have been greater than 75% it can clearly be carried forward.


Edit:
Lol. Yes we have said the same thing in a diff way. Missed your bit in brackets, now I get what you meant but it is clear all opex is allowed, the 75% max prevents the govt share being worthless in any one year never mind as a whole.

[philo124] 10/5/2016 11:07

Thanks for clarifications.

[unionhall] 10/5/2016 10:49

I am not in any doubt - the extract above explains it perfectly - "remaining proceeds allocated 51% / 49% " ie profit share.

I understand the Gov 12.75% is sacrosanct. ( the companies 12.25% is not)


Scenario a couple of years down the line - Loan repaid......(75,000 oz/annum Sale price US$1,400/oz, Op costs $900/oz)

105m euro of sales (75,000 x 1,400)

78.75m Sales included in profit-sharing (75% of $105m)
67.5m Opex (75,000 x 900)
11.25m Remaining Proceeds

5.7375 (51% to Government) (+ 12.75% of 105m)
5.5125 (49% to AAZ) (+ 12.25% of 105m)


Equates to exactly 51 / 49 split once the Opex, deemed interest and Capital costs are less than 75% of sales.

[jbravo2] 10/5/2016 10:45

You are quite right ferries.
However I'm under the impression that whilst we are only operating one site (and I guess Gosha is either linked to Gedabek by way of the processing as so counts as same site or is so small as to have neglible effect) that the costs of the directors can also be attributed solely to the existing PSA, that would of course change if we were to add another site and then only a proportion could. At least that is what I have in my mind but admittedly I can't find why I think that, so I could be wrong.


Anyway, my main point was that whilst it clearly won't continue at 87.25/12.75 forever, nor will it ever actually reach 49/51.

[ferries5] 10/5/2016 10:23

It is not AAZ debt that is recoverable, as that could include numerous things. (Director fees ect.) It is AIMC debt that is recoverable (The joint venture)
The money that is spent on each separate mine. That is the debt

Though AAZ have $50 million debt, a lot of that could have already been recovered from production. They use to tell you for how long they would have the 87.5% and when the split would kick in

[jbravo2] 10/5/2016 10:21

Or, of course, read the IPO/PSA docs. It's all there

[zhockey] 10/5/2016 10:18

Write to the company and ask if in doubt.

[jbravo2] 10/5/2016 10:15

Spot on zhockey.
Research:
The Group is entitled to a maximum of 75 per cent. of the sales proceeds of minerals to set against all operating, deemed interest and capital costs. Thereafter, the remaining proceeds are allocated 51 per cent. to MENR and 49 per cent. to Anglo Asian

Worthless? No. It is limited. In practice the govt receive 12.75% now and that is the minimum they can receive.

[unionhall] 10/5/2016 09:58

Don't think so....

All operating expenses will be greater than 50% of revenue - so the Government share would be effectively worthless.

[zhockey] 10/5/2016 09:38

UH my understanding is that all opex including admin expenses can be recouped from the govt share.

[unionhall] 10/5/2016 09:29

It will be 49/51 profit share will it not ?

[jbravo2] 10/5/2016 09:25

I trust everyone realises that it will in practice never reach 49/51 as we will always have the running costs that will be generated each year, but yes, I understand your broader point of course.

[ilostthelot] 10/5/2016 08:49

Only thing with that idea Catsick is the quicker they pay the debt of the quicker we revert to.the 49/51 product share.

It's worth while continuing to invest in infrastructure to hold that off.Thats as long as there is enough reserves and it's a worthwhile improvement.

[catsick] 10/5/2016 01:46

Yes thats vey interesting and serves to underline how well run and above board aaz are as it uses them multiple times as a comparison. You have to think the ore is worth trucking over to gedabek at some point if it is high enough grade and easy to get to, or the mine is worth taking over with some deal done with the banks, although I personally would rather see our cashflow used to cut the debt pile and pay a div or buyback

[mattjos] 09/5/2016 21:38

this is the most definitive report I have managed to find about Chovdar, with some interesting facts & figures and video footage of the site when operational. It certainly seems to put AAZ & Reza Vaziri in a comparatively good light:



I'll put it in the header for future reference.

$230m of investment into Chovdar and now it's sat there doing zip!!

Handing it over to AAZ so that it may be run effectively and the staff get their jobs back and get paid is surely a good PR exercise for the President of Azerbaijan &, in the current climate, he could surely do with all the good PR he can get hold of.

[celeritas] 09/5/2016 19:00

You have to realise aaz has is down here due to bash. People seem to see this share price as the norm when it's far from it. Would it have ever gone under 10p if it wasn't for bash, I doubt it. The problem now is people have got used to it as the only real buyers and sellers here are pi's, could do with a fund taking an interest

[jeanesy] 09/5/2016 17:51

A very good day especially as POG was down quite a bit! Let us hope it can hold!

[cordwainer] 09/5/2016 17:00

Most gold stocks were down today, not AAZ.

[zhockey] 09/5/2016 16:01

Long term I agree, short term I think we will see 1228 this week.

[celeritas] 09/5/2016 15:36

I think the sharp move down from gold today is looking overdone, on-wards to 1300 at some point this month. Key point is the world looks over-loaded with debt, any decent interest rate rise will now cause serious problems, so we live in a world of super low rates which will end in tears.

[zhockey] 09/5/2016 14:11

I think the gold upmove is looking tired and in the absense of an event will consolidate with the 200sma. For me the key sign was the weekness following the low NFP number.

[jbravo2] 09/5/2016 13:50

Interesting morning. Thought gold would be heading up after China at the weekend so it shows what I know. Next to nothing it seems.
I do know I can sell 100k shares at 9.25p if I was so minded. Can't get a price to buy even half that. They've found a few sellers at least but I guess not enough to keep it moving up. Again I thought it would soften a bit this morning after a few had time to think and decide to get out over the weekend. Not a strong set of predictions this weekend. Perhaps it was the beer.

Anyway, we move closer to good news. Guess people want in before it lands as they'll clearly miss out on the rise once good news is announced.
BTW anyone going on Thurs?

[wrighty46] 09/5/2016 11:40

Thanks for this board. Had my final top up this morning. Time to sit back now. Annoyed with selft Radernie though took 2 weeks to do a change of address on my account and couldn't deposit until it was done. Not even by phone. GLA

[mattjos] 09/5/2016 11:35

finding a few sellers but, not many & they being snapped up anyway