Anglo Asian Mining Share Discussion Threads

[catsick] 16/4/2018 09:20

A debt free company should have zero problems paying out 30pct of free cashflow, and these debt reduction numbers are after all exploration and capex . That could be as much as 2p per qtr without taxing things

[jbravo2] 16/4/2018 09:16

I think I've heard previously heap leaching is generally viewed as being productive for about a year on this site. It varies around the world due to rock type and temperature.
What the curve on that graph is I have no idea.

[2sporrans] 16/4/2018 09:13

Points taken Catsick.

Guess the HL output is a fairly lagged process; a fair % of the Q1 dump to leach out in Q2.
Anyone got a handle on the av. lag times?
Guess they vary seasonally.

[jbravo2] 16/4/2018 09:10

No worries riley, its a common misconception about the PSA. It's still working in our favour. The biggest item that goes on it each year is the cost of production. We claim all of that under its terms. We've got at least a couple more years before it kicks in, and that is with NO extra spending, just from cost of production. As it is we're going to spend on exploration, crushers, new underground plant, etc etc etc
You get the picture.


Current rate of cash production means we could exit the year with Net cash position of $20m.
That changes my ideas of what is prudent as a maiden divi. More than 1p could easily be stomached. Granted that may be more sensible but 2p hardly seems reckless either.

So $100m revenue this year. Net cash exit of $20m. >$200m plant. All paid.
What's the market cap????


BIGGEST BARGAIN ON AIM

[terropol] 16/4/2018 09:10

and:
Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company...

[2sporrans] 16/4/2018 09:09

Note on above Ugur observation:

I've been of the persuasion, since the very conservative looking 2018 prod. target release, that the Ugur production profile would exhibit both progressive grade reduction, partly to conserve and also sustain a steady cashflow going forward.
So this news isn't a problem for me.
Should have more or less been priced in.

[terropol] 16/4/2018 09:06

"The discovery of new potential mines, such as Ugur, together with the conversion of already known but under-explored prospects across our contract lease areas, is crucial to the continued growth and enhancement of our total production profile. With this in mind, I look forward to reporting on our exploration and appraisal activities over the coming months as we look to continue and increase the upward trajectory in production that we are now delivering."

[catsick] 16/4/2018 09:06

I would say it's basically semi overburden that is the low grade to get at the good stuff and thrown on the heap leach, production is still very high and its the winter qtr, also copper production is only a few weeks in march from floatation, the next couple of quarters will be huge and the cash created is going create a huge pile to invest in divs / exploration / new areas of production...

[2sporrans] 16/4/2018 09:02

Looking at the Ugur output, seems to be a big switch from Q4 towards extracting low grades for heap leaching.

Q4 - 238,818t extracted @3.2g/t

Q1 - 198,564t extracted @0.57g/t +
Q1 - 89,650t extracted @1.82g/t

The top q1 line for heap leach.
The 1.82g/t [my est.] for AL->SART [Flot_>AL->SART in March].

Maybe explains truncated buying?

Not say this is bad news; just a consideration.

[rileyma] 16/4/2018 08:50

ah ok fair doos ;-)
I stand corrected

[2sporrans] 16/4/2018 08:40

Anyone else find this of interest?

"Gadir not producing much but never mind the width, look at the quality.
The grade of 5.86 g/t is way up on the 2017 av. of 3.56 g/t.
Augers well."

The modest quantity extracted could be down to a number of things.
I'd like to learn the operational costs on this; at 5.86 g/t the margin should be good.

[jbe81] 16/4/2018 08:38

Riley, see page 6

[jbravo2] 16/4/2018 08:37

Oh dear riley.
No. No. No.
As recently disclosed we have nearly $100m of costs still to recover.
You can add another $6m for exploration this year, $50m+ for cost of production and plenty of other items as well.


PSA is NOTHING to do whether we have current debt or not.

[2sporrans] 16/4/2018 08:35

12% all gone JB.
My memory slipped.

But hopefully not my judgement.

[rileyma] 16/4/2018 08:33

doesn't this mean the PSA isn't far off kicking in?

[my retirement fund] 16/4/2018 08:32

Impossible to buy any at all online at the moment.

[jbravo2] 16/4/2018 08:23

@2sporrans.
Think you've missed the bit where they stated other loans were adjusted to 7% too.
Don't think we have anything at 12% anymore

[2sporrans] 16/4/2018 08:18

Note that of the $19.mn residual debt, $13.5-mn is the 2yr soft loan from Pasha bank @7% interest only.
So if AAZ pay down the other $5.5-mn in Q2, that's good bye to all the 12% loans.

[mad foetus] 16/4/2018 08:17

The biggest problem here remains the lack of liquidity in the shares. The company is going great guns, but it is incredible frustrating to be unable to trade chunks of even £5,000 quickly and reliably. If any of you are in touch with the board, that is something they should seek to address.

[edjge2] 16/4/2018 08:15

yep market thinks so too

[bumpa33] 16/4/2018 08:13

Debt reduction this qtr even more impressive when you take into consideration additional $4m loan payoff to Reza. From next quarter on this is going to be throwing off cash like it’s going out of fashion...

[terropol] 16/4/2018 08:11

Good Morning all, They have been busy, 50p here we come just like the chart is been saying.
Cash is pouring in, It will not be long before we start to get some.
And restating the Mid tier ambition by looking at more resources.

WEll done AAZ TEAM.

[2sporrans] 16/4/2018 08:11

Ha !
A few more schnapped up for 43.0p; just in time.
ii actually functioned well.
Must be a goood day.

[jbe81] 16/4/2018 08:10

Very good results. Maiden dividend cant be far away.

[2sporrans] 16/4/2018 08:08

Just noted:

"The Company changed the configuration of its processing facilities in March 2018 in conjunction with the recommencement of mining at the Gedabek main open pit. Ore from the main open pit together with stockpiled ore was treated initially by flotation and then by agitation leaching. This configuration will continue until the second crusher line is commissioned, when the flotation plant can operate as a stand-alone processing facility, which is anticipated during the current quarter. In Q1 2018, flotation processing produced 819 dmt of copper concentrate containing 141 tonnes of copper and 735 ounces of gold."

C'mmon Bleepy, where are you man.

Just goes to show the flexibility AAZ now has with the plant.

I'm guessing they are aiming to go steady with the Ugur production going forward.
Anyone else got a view on that?