Anglo Asian Mining Share Discussion Threads

[jbravo2] 22/9/2017 07:46

Well the buyer gladly took all the spare stuff from yesterday and that was plenty.
More PI's mugged for their shares.
Makes me sad that so many people are missing out on the big gains to come but I guess fools and their money eh?


@jeanesy. Some financing news in a month or two

[jeanesy] 22/9/2017 07:29

Did they say when we are most likely to get any further news, other than the production update in October ?

[brasso3] 22/9/2017 03:40

Good research as usual guys. You are all really on top of this one and not a lot gets passed you.

[2sporrans] 22/9/2017 00:25

Well, thanks for the education JB.

Guess that there's some kind of relationship between stockpile accrual and the decision to invest in further plant.
At least crushing is pretty straightforward and same plant precedes whatever processes follow; unlike AL v Flotation which are alternatives or semi-alternatives, suited to differing properties of the ores.

[jbravo2] 22/9/2017 00:04

I'll answer the second bit first. It's easier. :)
Ball mills simply do further grinding after SAG milling. They get the stuff even finer. Anything going through flotation or AL plant will be milled.
The mill pictured in the flotation plant is a small ball mill. (Ball mills are smaller diameter and longer than SAG mills)
Not sure if there's a small SAG mill in there as well. SAG milling is often done before ball milling but it doesn't have to be. Could just ball mill it I guess. Probably reduces throughput rate?



First bit next.... no idea sorry. Don't know what the nameplate capacity for our mills is. There is always going to be a bottleneck/limiting step somewhere of course.

[2sporrans] 21/9/2017 23:56

JB

Thanks for clarifying.

If a new, first stage, crusher is bought will the milling capacity/capacities also need/want to be increased, do you think?

Given the SAG mills are very tied in with the AL plant production, what are the Ball mills geared for? They don't seem to be available for Flotation feed. <----scrub this ?; posted before watching the 2nd video.

[jbravo2] 21/9/2017 23:56

Ah here you go.
First three minutes is the crusher. That's the first bit. Then it goes to the mills.

[jbravo2] 21/9/2017 23:45

There are two SAG mills. And two ball mills. (In the AL building)
I originally thought that was the total of our milling capacity but there are smaller mills in the flotation plant too (see pic in flotation section of gallery to see one)

They're not crushers though. Though of course they do crush but a crusher is the first stage before milling.


I'm trying to find the video of it. This is the stuff under construction. The crusher is up to the 2min 50 mark. Then it goes to the mills (back then we only had one SAG and two ball mills)

[2sporrans] 21/9/2017 23:40

McFly, JB, Matt

Thanks.

Looks like 212oz/day gold production out of Ugur is the max, constrained by the crushing plant but yeah there's probably a nice stack of stockpiled ore growing to feed the plant during excavation-transit impasses through the winter + any further future interruptions to pit/mine feed.

Strange....I'm also persuaded there are 2 SAG mills and even checked when I recently posted on my inference there was a crushing bottleneck - though primarily to the FLot.->AL->SART processing 'train'. [Did point out then that the Flotation plant has 2 small integrated crushers which seem to have ~400t ore throughput capacity going by the recent mainly stockpile feed.]

The AAZ website states:
" The capacity of the agitation leaching plant was increased in 2016 by the installation of a second semi-autogenous grinding ("SAG") mill."

hxxp://www.angloasianmining.com/operations/gedabek/

under:
3. Processing operations
7th subsection/paragaph down.

Anyhow, belt & braces: From Sept 2016 Interims:
" Second SAG mill operational end of August 2016"

Thinks.....doesn't the ore also get crushed before stacked on the heap leach pads?
No time to check now.

A 3rd SAG mill decidedly looks to be a prerequisite for anything approaching 100k-oz-pa gold or GE production.

[mattjos] 21/9/2017 22:48

Ok. Stand corrected. I thought we had two! :-(Need to recheck notes.That's v sad for Bill. Not many would have shown that sort of commitment

[jbravo2] 21/9/2017 22:43

Not quite matt. We only have one crusher and it is crushing for both.
So it's doing over 2500t/day.
This is the bottleneck as apparently the flotation has its own small mills. Something I was unaware of. Whether they will then become the bottleneck is the question of course.
The new crusher will come from Turkey (Ersel) like all our other crushers/mills

The existing crushing plant is ironically under more pressure than ever as its crushing more t/day as the ore from Ugur is proving so easily leached (see treatment rate details in presentation)


Further edit: ah yes now I remember. I've seen those mills in the flotation. In the gallery on the company site for the flotation plant. I was confused but just put them out of mind previously but you can see them in the middle pic.

[mattjos] 21/9/2017 22:34

At, say, 40T per haul truck trip from Ugur to Gedabek & 8 hours per day working, the crusher is being overwhelmed with just 10 truck loads per day ... just over 1 per hour.Clearly, they can excavate and haul faster than they can process so, some of the plant is being used for the tailings dam wall also.Should enable them to build a stockpile of Ugur ore for times during the winter if/when the weather restricts haulage from Ugur.Ugur looks to be going well despite only just starting up.

[jbravo2] 21/9/2017 22:25

Good presentation by Bill. Easily the best of the night. He deserves enormous credit for getting there and being ready and prepared to present having just come from his dads funeral. Well done Bill, very much appreciated.

Thanks too to John for coming along. Apparently Stephen was simply too busy on site to come! Good stuff!

As an aside...
Jeez there are some real basket case companies around. Thor mining and Premier African got asked some tough questions and frankly just didn't have the answers. Talk about destruction of shareholder value. Both are examples of the worst kind of investment unfortunately for their shareholders

[mattjos] 21/9/2017 22:17

Thanks McFly.Much as I had anticipated.To me, this reinforces my view that they are keeping their options open according to what they find deeper at Gedabek & that they fully appreciate how to use the PSA to their best advantage now.I would not be at all surprised to learn they take out another vendor finance deal with Atlas Copco for additional underground equipment early 2018.Additional crusher looks a given, when considering the Ugur opportunity. Projected at $1,200/oz but, now delivering some 8% higher.Despite the water treatment plant, they are still now raising tailings dam wall ... that signals prep. now for growing production from 2018

[mcfly79] 21/9/2017 22:06

Having got long to post but a few brief notes from tonight.212 oz a day gold production maintained up until yesterday.Crushing capacity is currently the reason why only 300-400 tonnes a day of the stockpiles are being processed through floatation. They are looking at spending a few million dollars to upgrade.Comfortable with current level of debt. Starting to consider if they need to reduce much further or do other things with the cash.Wouldn't be drawn on 2018 guidance.The presentation states the cost recovery phase may end in 2018 but this may be pushed back if additional capex is spent.Not currently considering asking for a change to the PSA terms.

[mattjos] 21/9/2017 20:48

Got it.Tomoz

[gutterhead] 21/9/2017 20:45

Matt, messaged you, regards, GH

[mattjos] 21/9/2017 20:39

I think it is fair & honest to say that AAZ mngmt did not fully appreciate how best to use the terms of the PSA to their best advantage until they had been through a complete cycle of investment and resultant growth + profit.Neither did investors.This time around, I believe they more fully appreciate the effects, both ways (the company and the Az govt) & in Bill Morgan, they have a CFO who does also understand its effects.For now, the pendulum effect is very much in our favour ie. after significant investment & with carry forward losses & the split still mainly in our favour.Assuming, as we believe & looks likely, the Gedabek licence area throws up further assets to justify another 10 years after 2022 then, the cycle can be extended. This is why exploration on Gedabek is particularly exciting. Let's see.

[mattjos] 21/9/2017 20:18

This is where the 'duality' of the PSA terms favour AAZ.I am interested to see how they account for the depn. after 2022.Good though that new investors are asking all same questions we asked several years ago.

[catsick] 21/9/2017 19:24

The money you are looking for is in the depreciation number, a non cash item that is not part of the aisc the cash generation is the thing to follow not the accounting profit, the mine plant and value of the mine itself is depreciated over its expected life, however they can actually keep extending the life of the mine by finding new ore, this does not create a positive depreciation number just means the remaining value of the plant can be depreciated over a longer period. At the end of the day cash is king ....

[jeanesy] 21/9/2017 18:50

Just got back in from work. As Mattjos predicted the shareprice fell on the news. Not had chance to fully look yet but Thomas11 has asked a very important question.. the numbers appear to not add up .. anyone shed any light ??

[puntogt] 21/9/2017 18:35

That is a good Q for someone to ask at event tonight.

.....They wern't really mining so aisc comes down ?

.....Will it go up now with Ugur on the go ? ..But more gold so more profit !

......However, they did pay off a fair bit of debt $5.6 Mil

[thomas11] 21/9/2017 18:26

Where has the money gone!!

Look at the AISC and the production figures, I simply can't work out why they are not profitable- I'm going to have a deeper look as this seems weird to me

[sh0wmethemoney] 21/9/2017 17:48

Any streaming of the event tonight?

[sportbilly1976] 21/9/2017 16:40

hope the Proactive event goes well tonight