Anglo Asian Mining Share Discussion Threads

[ferries5] 20/5/2016 20:35

Baku, Fineko/abc.az. Azerbaijan, which started industrial production of gold in July 2009 and publication of accompanying silver production in 2010, decreased production of gold by 14.4% for 2016, while production of silver increased by 5.1-fold.

The State Statistics Committee (SSC) informs that for Jan-Apr 2016 the country extracted 727.2 kg of precious metals (including 208.2 kg in April), that was by 0.6% less than a year before.

Stock reserves of precious metals as of 1 May 2016 totaled 76.2 kg (+35 kg in April).

Over Jan-Apr 2016 production totaled 597.1 kg of gold (180 kg in April) and 130.1 kg of silver (27.4 kg). At that, by 1 May 2016 stock reserves of gold totaled 63.2 kg (+34.6 kg in April) and 13 kg of silver (+0.4 kg).

In 2015 the country extracted 2,367.2 kg of precious metals, including 2,229.3 kg of gold and 137.9 kg of silver.

In 2014 production totaled 2,111.8 kg of precious metals, including 1,872.5 kg of gold and 239.3 kg of silver.

In 2013 the country extracted 2.249 kg of precious metals, including 1,619 kg of gold and 630 kg of silver. In 2012 the country was produced 2,188 kg of precious metals, including 1,562 kg of gold and 625 kg of silver.

In 2011 country’s extraction of precious metals amounted to 2,992 kg, including 1,775 kg of gold and 1,217 kg of silver. In 2010, extraction reached 1,900 kg of gold and 1,500 kg of silver. From July 2009 to 1 January 2010 the country extracted 333 kg and with taking into account the production in 2010-16, the overall gold extraction reached 11,558.42 kg and silver extraction at least 4,372.7 kg.

The Environment & Natural Resources Ministry estimates that the country is able to produce about 10-15 tons of gold per annum.


180 kilograms= 5,787.1343823529 troy oz Well done aps55555

[jbravo2] 20/5/2016 10:34

@catsick: it certainly could look like that couldn't it? No money therefore must be cashflow negative? But imagine if there were several hundred kilos of dore, say even 300kg, produced by Chovdar sitting in vaults, unable to be processed as ultimate ownership of the company was problematic to demonstrate and therefore many refiners were becoming unwilling to take it. Would that cash flow have made a difference? (Please cross reference recent stories of gold dore found being smuggled out of Azerbaijan. It didn't fall off a tree and I hope it didn't come from AAZ!)
I have heard that AIMROC had c$180m of debt at last count. (Other sources have suggested upto c$250m) Most of that I would have thought would have been supplied by banks such as Pasha bank. As mattjos said, start to think about who owns these banks.
However you are right this debt simply isn't going to disappear. Something will be wanted but ultimately AAZ aren't going to give away the hard won position of increasing financial strength they now find themselves in. They won't load themselves with that much debt. So perhaps a deal can be done or perhaps Reza would prefer one or more of the other properties? Garadagh? Dagkesaman? Kehnemadan? Goydag? Kurekchay?

[jesus405] 20/5/2016 10:27

Cheers Jbravo, I suppose it will be clear as we move along as if they are not declaring all the gold in the monthly state reports, then we would expect substantially inflated months on 3,6,9,12.

[celeritas] 20/5/2016 10:09

hgm steady away again.
With gold over 1200 it should also be steady away here, it just needs to get over it's bashirov hangover but I guess that won't happen until the price is back in the 20s and people perceive everything must be great even though it's no different to now.

[mattjos] 20/5/2016 09:57

ok, thanks Cel .. did not know. Taken that post down now.

catsick .. I think you should look to see exactly who the lenders are to current Chovdar owners

[celeritas] 20/5/2016 09:55

Mattjos, blacks cant vote down.

catsick, depends on what deal could be done.

[catsick] 20/5/2016 09:42

I personally think Chovdar would be a bad idea, the asset has a load of bank debt with it, if it was cashflow positive they would not have shuttered it and it seems like it was negative cashflow without even paying wages, being owned by the presidents kids it will not be reposessed and sold by the banks at cents on the dollar, they will want cash for the shares and the banks will want the new owner to repay all the debt in full . The only deal I can see working is for aaz to buy and process any decent easy to get at ore they have to sell...

[celeritas] 20/5/2016 08:58

If any deals are going down then surely the only gold miner in Azerbaijan is involved.
70/30 rates sound a lot more appealing.

It's not just drill results either.

[jeanesy] 20/5/2016 08:14

What do you mean ferries?

[jesus405] 20/5/2016 01:52

Don't wanna get too much bogged down in figures but... Jan 135.5 kg gold = 4356 oz,Feb 134.1 kg gold = 4225 ounces(rounded to nearest ounce), March = 5591 ounces as 14172 for quarter minus Jan and Feb, April = 5024 ounces (597.1 kg Jan-April -14172 ounces for first quarter.) So Jan 4356, Feb 4425, Mar 5591, April 5024. Could be wrong but it has tallied before. Of course Copper and Silver to be added to this to get a true reflection of production. SART + Floation Plant has stopped being a little bit on the side revenue wise and now is becoming a real asset.

[ferries5] 19/5/2016 22:32

There is something going on in the gold scene In Azerbaijan but no idea if aaz are involved.

[celeritas] 19/5/2016 18:34

hgm kept going up even when gold was falling or hanging around.
I'd like to see what takes place regarding Chovdar, surely with the Panama papers the president isn't going to risk having his daughters own the majority of it never mind let it sit idle. The longer that goes on the longer it'll take to start up.
Hopefully aaz are in the frame after running what is now it's only producing gold mine in the country.
Surely Aliyev will also want to stop the discontent in the area by paying the locals and also giving them work at a operating mine.

[jeanesy] 19/5/2016 18:07

Another poor day for POG. Not sure what the catalyst will be to steady the ship. Buys far outweigh sells here today but another 6% drop. The intra day high last week was somewhere in the region of 13.5p wasn't it so we have dropped quite alot since then. Time for a top -up anyone or do we have further to fall?

[zhockey] 19/5/2016 00:54

Gold is dropping as I expected, it needs to get closer to the 200SMA. The driver last week was retail sales, this it's FED tightening, remember also the poor NFP number did not help gold a jot. Gold wants to naturally move lower to consolidate with the 200 SMA.

[celeritas] 18/5/2016 21:51

As Brexit, Trump Multiply Global Risks, Gold Seen at $1,400

[mattjos] 18/5/2016 20:17

Not sure what the fuss is all about. Figures came in pretty much as I had expected and now the optimum months are just ahead of us.At risk of being repetitive, it's May's figures released mid June when I expect the big improvement to be apparent.The Fed is desperate to try and raise rates but, June? Just ahead of the U.K. Vote on Europe? That seems rather adventurous. I would have thought July earliest, assuming of course the markets do not now have another panic and drop from now until then.Results, AGM, operations update & Q2 figures, at least, still to come here in the next 9 weeks or so.

[jeanesy] 18/5/2016 19:28

Seems like the market wasn't too impressed though. What were they expecting ? Seem like good enough figures to me. perhaps the fall in POG was the reason. Gold not looking very strong a the moment despite what some on here think.

[aps55555] 18/5/2016 18:39

I am pretty excited by April's production figures. They produced 4,356 oz in January, 4,225 oz in February, 4,802 oz in March and 5,814 oz in April excluding gold in concentrate from SART and Floatation. One of the main reasons for April boost is the higher amount of ore mined at Gadir due to expansion of the fleet. Also, in Q1 2016 the Company processed ore in Agitation leaching plant with a grade of 1.84 from Gedebek open pit mine by my calculations. Gadir and Gosha ore raised the average grade to 2.93. The agitation leaching plant is supposed to process ore with an average grade of 3.29 from Gedebek open pit only. Therefore, there is a lot of high grade ore that needs to be processed for the rest of the year from Gedebek open pit. Add to that the higher amount of ore from Gadir due to fleet expansion, they can easily match their guidance for 2016. April figure increased my confidence level to over 95% for them to meet their guidance. Before April production I was at 49% :) Best

[brasso3] 18/5/2016 16:36

If 5800oz is correct and we assume an additional 200oz from flotation production:-

5800oz x 87% x ($1250 - $700) = $2.87m operating profit

[brasso3] 18/5/2016 15:01

19194oz for Jan - Apr. better than I expected.

Not a great month and they need to make something big happen in May - Sept if they are to make the 73,000oz FY target.

They need to average 6750oz per month now for the rest of the year.

[ferries5] 18/5/2016 11:38

-- Gold production for Q1 2016 totalled 14,172 ounces with 13,383 ounces contained within gold doré, 12 ounces from SART processing and 777 ounces from flotation

[aps55555] 18/5/2016 11:30

Ferries,

My calculation gives production of over 5,800 oz plus floatation production.

For the first four months gold dore production is reported to be 19,200.

First quarter dore production was 13,400. Therefore, in april they produced 5,800 oz.

[ferries5] 18/5/2016 10:56

Azerbaijan sharply increases silver production



About 5022 oz.April . 19194troy oz for 4 month +April Flotation say 400 oz?? Would put them on target for there bottom estimate if they maintain Aprils production