Anglo Asian Mining Share Discussion Threads

[philo124] 26/5/2016 07:41

Agreed. Rein back the inclination to spend on Capex for 3 months.

[brasso3] 26/5/2016 07:07

Either reduce debt or build up some cash reserves.

[philo124] 26/5/2016 07:04

All good. I still think that materially reducing the debt is, for the share price, as relevant as the POG, the PSA and currency rates. The latter 3 of course make it possible.

[bleepy] 25/5/2016 23:29

-- Production target of 73,000 to 77,000 ounces of gold and 1,700 to 2,100 tonnes of copper for FY 2016

-- Gadir underground mine commenced production in 2015 with 37,880 tonnes of ore mined with an average grade of 7.98 grammes of gold per tonne

-- Flotation plant commenced production in Q4 2015 with 578 dry metric tonnes of copper concentrate produced containing 130 tonnes of copper, 335 ounces of gold and 9,264 ounces of silver

Financials


-- Total revenues increased to $78.1 million (2014: $68.0 million)
-- Loss before tax reduced to $8.9 million (2014: $14.4 million)
-- Operating cash flow before movements in working capital increased to $18.6 million (2014: $10.6 million)

-- Net debt of $49.0 million at 31 December 2015 (31 December 2014: $52.4 million) calculated as aggregate of loans and borrowings less cash and cash equivalents


-- Cash position of $0.2 million as at 31 December 2015 (31 December 2014: $0.3 million)
Chairman's statement

2015 was another important year for Anglo Asian where we demonstrated our ability as a mid-tier gold, copper and silver producer. I believe it marks the first stage in turning around your Company. The performance of our assets in Azerbaijan improved and we delivered record gold production of 72,032 ounces. With production increasing at Gedabek, together with the successful launch of our flotation plant in the fourth quarter of 2015, Anglo Asian is now able to deliver long-term, sustainable value to shareholders even during periods of low metal prices such as seen during 2015. The increase in metal prices seen since the beginning of 2016, together with the cost reduction and efficiency initiatives and the devaluation of the Azerbaijan Manat, will further enhance Anglo Asian's performance in the future.

[bleepy] 25/5/2016 23:06

Anglo Asian on track for FY production guidance, says CFO

Agreed,excellent commentary by Bill and a sobering forecast going forward backed up by expanding infra structure and sound economics.

Further news more than expected in the next weeks before agm, Reza being silent of late just adds to speculation....

[zhockey] 25/5/2016 22:39

A really good summary of the PSA in the results I notice. Unionhall are you still here?

Production Sharing Agreement ("PSA")

Under the terms of the PSA in place with the Government of Azerbaijan, the Group and the Government of Azerbaijan share commercial products of each mine. Until the time the Group has recovered all its carried forward, unrecovered costs, the Government of Azerbaijan effectively takes 12.75 per cent. of commercial products of each mine, with the Group taking 87.25 per cent. (being 75 per cent. for capital and operating costs plus 49 per cent. of the remaining 25 per cent. balance). The Group will not have recovered all its costs incurred by the end of 2016 and the ratio of sharing commercial products for the Gedabek mine of 87.25 per cent. for the Group and 12.75 per cent. for the Government of Azerbaijan will continue throughout 2016.

Once all prior year costs are recovered, the Group can continue with cost recovery of up to 75 per cent. of the value of commercial products, before the remaining product revenues are shared between the Company and the Government of Azerbaijan in a 49 per cent. to 51 per cent. ratio. The Group can recover the following costs:

-- all direct operating expenses of the Gedabek mine;
-- all exploration expenses incurred on the Gedabek contract area;
-- all capital expenditure incurred on the Gedabek mine;
-- an allocation of corporate overheads - currently, overheads are apportioned to Gedabek according to the ratio of direct capital and operating expenditure at the Gedabek contract area compared with direct capital and operational expenditure at the Gosha and Ordubad contract areas; and

-- an imputed interest rate of US dollar LIBOR + 4 per cent. per annum on any unrecovered

[mattjos] 25/5/2016 21:57

Good man Bill. Steady, assured, not at all over excitable. He is repeatedly proving himself as pretty unflappable & trustworthy in his commentary. He's running interference for Reza also at this stage.Reza has bigger fish to try while Bill is handling the numbers & the interviews.I take my hat off to Reza & the team he has gathered around him in the company. It is genuinely a terrific achievement & much removed from the usual 'I've just had a pony' AIM-listed RNS brigade.Not forgetting the $4m of Reza's own money on the line here in addition to his already significant shareholding.A blind man can see the obvious correlation between the CEO/major shareholder/founding entrepreneur & the stockholders.

[ferries5] 25/5/2016 21:40

aaz on stock tube

[jeanesy] 25/5/2016 20:56

what good news is that jbe81 ?

[mattjos] 25/5/2016 19:55

Do what I can Brasso but, swamped at work right now. Might be a week or so as off travelling abroad on sales trips from tomorrow.

[hedgehog33] 25/5/2016 19:44

Have to admit I added a few more cheeky one's today....

[brasso3] 25/5/2016 18:27

Matt

Your gold and silver charts are not working?

[zhockey] 25/5/2016 15:26

For me there are two sceanarios that would give a fair valuation at this level.

1. The current level of production cannot be sustained.
2. There will be a significant drop in metal prices

Should either of these prove to be wrong then the share price can only go up IMO.

[mattjos] 25/5/2016 15:13

Yup, its insane isn't it!!

[zhockey] 25/5/2016 14:52

That cost saving is not far off the market cap of AAZ!

[celeritas] 25/5/2016 14:48

We estimate that the combined effect of the recent devaluation and the previous devaluation in February 2015 will reduce our operating costs by approximately $13 million in the 2016 financial year at the current US Dollar to Azerbaijan Manat exchange rate of approximately $1 equals AZN1.5

[ferries5] 25/5/2016 14:25

Bleepy

The new company that has been incorporated, Azergold will be the only state run gold company in Azerbaijan. Also it will be responsible for the development of all precious metal discoveries, not just Gedabey or Chovdar. It is to have 2 million shares and a management appointed by the president as he is taking a personal interest in it.
What this means for AAZ I am not sure, directly or indirectly. But I think it will be good.

[jbe81] 25/5/2016 13:31

Thinks looking good, good buying opportunity, will start to tick up now a few sellers have cleared. Expect good news to come from the company shortly too.

[zhockey] 25/5/2016 13:29

Yeah but that is not news is it?

[bleepy] 25/5/2016 13:21

Gedabek site

The main exploration activities in the year have been at the Gadir mine and surrounding area at Gedabek and at the Ordubud site.

We are also planning for further exploration at Gosha.

[bleepy] 25/5/2016 13:11

Principal activities

The principal activity of Anglo Asian Mining PLC is that of a holding company and a provider of support and management services to its main operating subsidiary R.V. Investment Group Services LLC. The Company, together with its subsidiaries (the "Group"), owns and operates gold, silver and copper producing assets in the Republic of Azerbaijan ("Azerbaijan"). It also explores for and develops other potential gold and copper projects in Azerbaijan.


"other potential gold and copper projects in Azerbaijan" ... hmmm, Chovdar !!!!

[zhockey] 25/5/2016 13:06

Why? In a polymetallic mine bp revenue is key to the economics.

[tailor1] 25/5/2016 13:03

Does anyone know what the net cost is to produce the gold. The gross cost does not matter, it is all about how much net profit per oz there making.

[zhockey] 25/5/2016 11:44

A lack of news on exploration which I find disapointing. They do however say in the opening that they have established a long term production profile.

The future of AAZ requires resource growth IMO.