Anglo Asian Mining Share Discussion Threads

[mattjos] 14/7/2016 23:07

please .. do not attract the Zak Mir muppet-brigade to this!

[jbe81] 14/7/2016 23:00

bit more coverage

[2sporrans] 14/7/2016 22:09

"A bit of exposure in the Daily Mail"

No pun intended Brasso?

[mattjos] 14/7/2016 21:12

Jbe81 et al, you are welcome. It's a pleasure and enjoyable.Don't forget everyone ... It's Reza, the Board and every single employee of the company who are doing the hard work & ultimately it is they that shareholders should be extending their thanks to. I am very sure they would be really very happy to receive any/all supportive emails from investors & they would be shared amongst all the staff in the company.From Day 1, the Board have chosen to go about business in Azerbaijan, as the only overseas listed company, in an honest, open & fair manner. I am sure that standard of corporate behaviour will, in time, be rewarded accordingly and held up as the model for other such companies to operate by.Azerbaijan needs companies like ours.

[jbe81] 14/7/2016 20:39

Thanks for your time and work on the thread Matt

[mattjos] 14/7/2016 18:24

Thanks Brasso .. Thread header updated with revised Quarterly production chart from Q1 2013 to Q2 2016, inclusive.

Click on the graphic to go to a dedicated webpage to see the chart. As per all the thread header graphics which act as links also.

Really shows how the Flotation plant has transformed production over the last 3 Quarters

[jbravo2] 14/7/2016 17:42

A fabulous half. Great results and another strong day's trading. These prices will be a far distant memory over the coming months. I guess the useless brokers will remove their caution just as most of the profits have been had by people like us.
Muppets

[jaspoland] 14/7/2016 16:53

Phil0124, investors should remain wary in my opinion of brokers dishing out sh*t. We're on a winner assuming gold stays strong

[mattjos] 14/7/2016 16:51

since when did Shore Capital become a broker here?

[philo124] 14/7/2016 16:48

"Investors should remain wary" of what? Broker comments?

[scottishfield] 14/7/2016 16:36

Nice 19.5 UT finish. A good day.

[2sporrans] 14/7/2016 16:31

"With stocks breaking out to new highs where will money flows come from to support the POG?" Zhockey.
Asset prices fluctuate....currently equities up, Gold down.
May well invert next week, even tomorrow.

The money flows from over $150-bn/month of CB bond buying in Europe/Japan are pushing huge capital flow to US Treasuries.
But as even these feature longer yields falling to token levels, the case for holding Gold [also a $ asset] strengthens along with that [relative to bonds] for equities; moreso if earnings fade out.

Seems to me Gold simply got ahead of itself; as you have pointed out several times lately ZH:O)

The $1200/oz put hedge is a free [or very cheap] out of the money [I guess] insurance policy to ensure AAZ will continue with investments + debt payments and some pay down through H2.

[u696061] 14/7/2016 16:26

I expect debt to reduce by 15m by year end

[brasso3] 14/7/2016 16:13

Has copper and silver now peaked or will the quarter on quarter trend continue?

[timberwolf3] 14/7/2016 16:11

So best ever Q for copper produced, best ever Q for Silver produced and second best ever Q for gold produced.

[ferries5] 14/7/2016 15:19

[...] On proactive



HomeNewsNewswiresLON:AAZ
Anglo Asian Mining's second quarter output trumps first
Share
11:31 14 Jul 2016
Gold output from Gedabek rose to 19,665 ounces in the three months to end June, compared to 14,172 ounces in Q1
A gold pour
It sold 15,661 ounces of gold in doré sales in the three months at an average price of $1,265 per ounce (Q1: 12,058 ounces at an average of $1,184 per ounce).
Anglo Asian Mining Plc (LON:AAZ) saw a substantial pick-up in production in its second quarter as it continues to improve and lower costs at its Azerbaijan operations.

And chief executive Reza Vaziri told investors: "The second half of the year has historically been our best performing half due to the seasonally better weather and our production will also benefit from the second SAG mill which is due to start operating next month."

Gold output from Gedabek rose to 19,665 ounces in the three months to end June, compared to 14,172 ounces in the first quarter this year.

Copper production came in at 537 tonnes versus 432 tonnes last quarter, while the miner produced 56,440 ounces of silver against 34,342 ounces in Q1.

It sold 15,661 ounces of gold in doré sales in the three months at an average price of $1,265 per ounce (Q1: 12,058 ounces at an average of $1,184 per ounce).

Copper concentrate shipments to the customer totalled 1,582 dry metric tonnes with a sales value of $3 million (Q1: 1,330 dmt with a sales value of $2.1 million).

The first half also saw a contract struck over purifying water from the tailings dam and a second contract was executed to build electrical sub-station and associated overhead power lines expected to be completed by end of 2016, and anticipated annual savings of $1.8 to $2.0 million from 2017 onward.

"The new underground equipment which is now in full time use at Gadir is also improving our productivity," the firm added as it continues to work towards returning to profitability."

The firm has also hedged around half of expected gold sales for the rest of the 2016 due to the recent strength in the gold price resulting from the uncertainty of the UK's EU referendum decision.

The minimum sale price per ounce will be US$1,200 and the maximum US$1,426 under the deal, which the firm called a "win win" transaction.

"This is the first time Anglo Asian has hedged gold sales and this transaction therefore marks another stage in the development of your company," it told investors.

Its targeted output for the full year remains at between 73,000 ounces and 77,000 ounces of gold and 1,700 to 2,100 tonnes of copper.

Net debt as at June 30 was US$40.8 million, a reduction of US$8.2 million since the end of 2015.

Broker Shore Capital noted the improved Q2 production, that full-year targets were maintained and that the higher gold price eased balance sheet concerns, but added that "investors should remain wary, we believe".

"The recent rise in the gold price has alleviated our concerns somewhat for the near term, but until the balance sheet has been properly sorted out, we believe that investors should remain wary in relation to the medium term," said analyst Yuen Low.

Shares gained 7.97% to 18.625p.

[philo124] 14/7/2016 14:23

Yes, it is. Aaz have a hedge in place but currently selling fortnightly at spot price.

[highly geared] 14/7/2016 14:20

You don't get evidence that future events are playing out now.
However, charts are foot prints of money that mirror collective human behaviour that repeat over and over through history. My previous post refers.

[highly geared] 14/7/2016 14:16

The weekly COT reports and gold 200 day SMA tell you where gold is going short term. The 50 year DOW / Gold price chart tells you where gold is going medium/ long term.
Put simply, gold was due a pull back short term and may back test around $ 1260-80. Longer term (2018-22); expect $4,000+. The 25 year gold/DOW cycle underway is mirroring the 1955-80 cycle with unerring similarity.

[zhockey] 14/7/2016 14:14

Fixated? Yes I guess that is fair.

Gary Savage has an interesting view that all asset classes bar the USD are going up. He has similar POG targets to you but POG and stocks have been inverse for the past few years so I want some evidence this will indeed play out.

Jeanesy, if the hedge triggers to the downside I think we will all be crying in our beer.

[mattjos] 14/7/2016 13:50

zhockey .. I cant give you assurances on the price of gold. You seem a bit fixated on this point, if you don't mind me saying. You know I have my own targets for that.
The opposite is why on earth are stocks being bid higher when they are already on nose-bleed p/e's?

Yes, it is important but, the company has hedged 50% for rest of this year and continues in its cost-cutting efforts. The company can control its costs and the recent initiatives + Manat devaluation are having a significant impact on profitability.
I think you need to focus rather more on the growing by-products of silver and copper & the contribution they are now making.

Damned if I am going to try and short term trading here ... with the AIMROC assets soon to be in play, it will only take one 'unscheduled' newsitem on that and any traders here will be left on the sidelines

[jbe81] 14/7/2016 13:47

went very quickly from 20p to 40p then, Matt. Then very quickly to 80p, the story is much better now

[jeanesy] 14/7/2016 13:44

Pog has now fallen through the 1325 level so it may have further to fall. The hedge taken out here looks like it was a good move !