Anglo Asian Mining Share Discussion Threads

[terropol] 16/4/2018 15:07

Quite a few 40000 trades at 40p taken without change in the share price
Are they all sales or are they to do with ISA`S...
My full allowance ISA order placed last week...not executed yet, brokers told me many orders to process.

[lefrene] 16/4/2018 14:27

jaspoland, "good luck with that", indeed I wouldn't try to trade in and out, the spread tends to be too wide most of the time except on rare high volume days such as today.

At a market cap of £47 million their gross profit might exceed their market cap in the current year!

[mad foetus] 16/4/2018 14:15

GFM issued great results last week, share price rose sharply first thing, drifted down during the day, fell back the next couple of days and has since bounced strongly. In many ways it is a similar company to AAZ: profitable, under the radar, no/minimal spread, lightly traded. As AAZ is difficult to trade and/or buy in quantity, those wishing to take a meaningful stake have to play a long game, but the share price trajectory must be up from here.

[jaspoland] 16/4/2018 14:12

Lefrene, it's possible some sold in the hope of buying back at a lower price. Good luck with that. It's plain to see the value building here and as frustrating as it is the market will get it eventually. Lots here have sizeable holdings and are happy to wait for that value to be realised. I expect a divi to come with interims in half year 2018. We were never going to hear a dividend declaration today.

[lefrene] 16/4/2018 14:03

Perhaps sellers are disappointed with the lack of a divi? While one cannot fault the management here on their execution of the physical business which has been exceptional by any standard of measurement, and yet they seem uncharacteristically inept when it comes to promoting their success. This seems at odds with their evident intelligence, almost to make me wonder if it is deliberate? But then what is there to gain by such a tactic?

[jbe81] 16/4/2018 13:52

Poor response to the share price looks like nothing more than somebody using the volume created today to take the opportunity to sell some. As soon as they are done would expect a sharp rise in the next few days. Gold remains close to breaking out. News today confirms how undervalued we are.

[doc_oj] 16/4/2018 12:12

impressive! share price response is rather disappointing but i have no doubt it will catch up in the coming days/weeks. did a small top up friday late PM, well timed!

[bleepy] 16/4/2018 12:00

2s

Thanks for pointing that out, I mistakingly compared Q1/18 to FY17. Apologies if misled.

[friendzarin] 16/4/2018 11:30

Ghastly plum...that's a good one ;)

[terropol] 16/4/2018 11:15

YASX, Good morning.
Get to the AGM this year, likely to be end of June.
We will all share a coffee and will be nice to meet another fellow experienced trader.
Do not take anything personal, I guess we are all wishing a fast growth to our share price.

[2sporrans] 16/4/2018 11:10

Bleepy

Why do you think Gadir output was only 25% of expected?
What was expected?

40,438t gold extracted Q4 [3.61g/t av. grade]
v
19,950t Q1 [5.86g/t]
Near 50% of Q4....

Agreed, lots of possible reasons for drop: Weather/transit conditions, exploration clashes, hiatus over plant switch + maybe on hold during Flot->AL->SART configuration pending post crusher [Q2] switch to 2 independent production trains, when expect the Gadir goes 100% via the AL->SART train as was previously.
Blending considerations, noting the lower Ugur grades.

Whatever, that 5.86g/t grade augurs well.
We know there's plenty more in Gadir.

[terropol] 16/4/2018 11:07

Brokers notes on today`s daily report.
Anglo Asian Mining* (AAZ LN) 42p, Mkt Cap £48m – Robust Q1 production numbers – on target for 78-84koz GE in 2018

Production climbed 26%yoy to 18.3koz GE in Q1 (Q1/17: 14.6koz; Q4/17: 23.2koz) on the back of stronger performance from both agitation (AL) and heap leaching (HL) operations.
AL production climbed 93%yot to 10.6koz (Q1/17: 5.5koz; Q4/17: 17.0koz) on the back of higher processed grades (2.07g/t v 1.46g/t in Q1/17) and better gold recoveries ((86% v 64% in Q1/17).
HL production climbed 34%yoy to 5.1koz (Q1/17: 3.8koz; Q4/17: 5.0koz).
Concentrate production totalled 1.0kt containing 255t Cu, 0.7koz Au and 33.5koz Ag (Q1/17: 2.7kt containing 606t Cu, 1.8koz Au and 36.9koz Ag) with flotation plant restarted in March processing mined copper rich material mined at Gedabek as well as available stockpiles.
Mining operations restarted at the main Gedabek open pit during the quarter with the ore currently being processed through the flotation circuit first followed by the agitation leaching of flotation tailings.
The configuration will be changed once the second crusher is commissioned allowing for a parallel operation of leaching and flotation circuits which expected in Q2/18.
Gold bullion sales (ex government share under the PSA) totalled 15.0koz at an average gold price of $1,328/oz (Q1/17: 8.3koz at $1,220/oz).
Concentrate sales (ex PSA) totalled 608t of product netting $1.7m (Q1/17: 2,230t for $4.2m).
Cash in the bank stood at $8.6m as of Q1/18 (Q4/17: $2.3m) total outstanding debt of $19.0m (Q4/17: $20.6m) suggesting $10.4m in net debt, down $7.9m on the previous quarter.
Conclusion: Robust start to the year with AL plant performing well yielding good gold recoveries from processed Ugur and Gadir copper free ores. Main Gedabek open pit as well as the flotation plant restarted with processing rates due to ramp up towards the end of this quarter as the second crusher is commissioned allowing to run tank leaching and flotation circuits in parallel. This is forecast to weigh GE production towards H2/18. The Company remains comfortably on target for previously guided 78-84koz GE this year.

*SP Angel acts as nomad and broker to Anglo Asian Mining

[yasx] 16/4/2018 11:00

Solid production update. Poor response in terms of price appreciation, but, I am prepared to be patient.

I will set up my own thread since I despise the idea of only allowing glowing commentary about those running this Co. and their advisers. There is no doubt the Co is and has taken tremendous strides on an operational front, but, I find it difficult to say the same regarding their efforts to promote such achievements. That was the singular point I made, only to be jumped on in an aggressive manner by a two bit hypocritical ghastly plum like FZ. Remarkably, although he sought to point out to me that by questioning the PR I was not 'liking the product' and should therefore sell and move (quite why he thinks I would take his advice beats me), but, he has himself been blathering about ineffective PR for months, and again in his comment above re share price Angel. Take your own advice FZ, if you don't like the product, head for the exit. The comment below from weeks ago is another example of this plum's double standards. I respect Mattjos (and having engaged him on here and privately for several years think him a very reasonable chap) and for that reason will make this my last comment on here - but, i will set up my own thread if I wish to submit contributions (which I do only rarely these days). But, I will not allow myself to be subjected to the dictatorial oppression of some of the cheerleaders on here in the event one questions any aspect of the manner in which the Co. runs its affairs.

A harmonious thread is a good thing - but, not when only positive contributions are allowed.A numpty like FZ thinks he is the only one that has the right to raise issues and that everyone else ought merely to like every aspect of the 'product'. I have forgotten more about the markets than he will ever know.

I wish AAZ holders (save FZ) well since my interests are aligned in the same direction.

----------------------------------------
Friendzarin13 Mar '18 - 09:18 - 11974 of 12508
Matt

Re the P R . Haven't we been here before in October when there was a view amongst many that the announcement then could have achieved more by an emphasis on positive achievements and the goals of the company that are being strived for ie ' mid tier ' and what that may mean in output dimensions.

I wrote to St Brides and the comments were passed to the company...no reply. I wrote to John Meyer at S P Angel and got the polite brush off. It is my intention to write to the company now and try and articulate as positively as I can why they
can improve in this area. Make no mistake if there are no signs of an improvement of approach on this I will be raising it at the AGM.

[friendzarin] 16/4/2018 10:44

Great effort once again by the AAZ operations team.I'm really impressed with how smoothly they continue to manage the transition process and with the new crusher
confirmed once again for this quarter what a prospect we have in place for ramping up production levels.

It will be interesting to see how this news is handled now over the next few weeks and S P Angels role in particular. John Meyer has a habit of appearing on Vox Markets and I wonder if he will do a piece there.I agree with you mad foetus that S P Angel could and should be doing more.

The next opportunity that is logged for AAZ to present itself in public is the Mining Capital Conference on May 3rd.In some ways it's a shame that AAZ usually produce their previous year figures much later in May as if they were already out of the way then concentration would more likely to be solely on Q1 and the the way ahead this year.We don't necessarily now want to concentrate on looking backwards when we are full steam ahead. The content of the May 3rd presentation will be very interesting and give the opportunity for a more forward looking outlook and I have mentioned this emphasis currently to St Brides on more than one occasion now.

We really do have the figures and metrics now to make the market sit up and reconsider our valuation.

[bleepy] 16/4/2018 10:33

“Reconfiguration of processing facilities successfully initiated in March 2018 to utilise the combined flotation and agitation leaching plants
· Optionality of the processing configuration highlights flexibility of operations in order to maximise production depending on composition of plant feedstock”

Perhaps downtime of plant to enable reconfiguration might also explain reduced throughput.


“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.”

[mattjos] 16/4/2018 10:31

Just assume they know what they are doing & concentrate on the cash generation!

[bleepy] 16/4/2018 10:29

Or was Gadir production scaled back until second crusher installed.
25% of normal mining from Gadir,the restart of Gedabek open pit and stockpile ore was probably suffice to feed the production circuit without the flotation circuit enabled this quarter.

[basem1] 16/4/2018 10:25

Thanks MF.

[bleepy] 16/4/2018 10:21

Outstanding news of this quarter moreso when you consider Gadir production was just 25% of expected (at a much higher grade)and no contribution from Gosha.

Reflecting on exploration update of 13th March/18 it highlights the extensive ongoing exploration for both Gadir and Gosha as below...

Gadir
Both surface and underground drilling are planned. 7,500 metres of core surface drilling is planned in 2018 for both Gadir itself and between Gadir and the main open pit. The objective is to further define the footprint geology of Gadir and assess the geological relationship between Gadir and Gedabek mineralisation. 6,000 metres of underground core drilling (HQ/NQ size) and 2,400 metres of underground core drilling (BQ size) is also planned. The main purpose of the drilling is to provide geological data for the evaluation of the continuity of mineralisation and for planning in advance of mining.

Gosha
3,000 metres of core drilling is planned to explore for gold veins supported by geological mapping, outcrop sampling and geochemical sediment sampling.


I can only speculate that exploration has taken precedent over production at both Gosha and Gadir for Q1.

Yet they still managed to produce 18,000geo this quarter.

Going forward should see Gadir ramped to full production, Gosha’s return to production and the addition of a second crusher enabling an independent flotation circuit.

All this with prospect of no debt and divi on the horizon.

Onwards and upwards with exploration roll out and resource/reserve jorc’s published this year and ongoing for the following three years.

[mad foetus] 16/4/2018 10:20

No, the gross debt is $19m. The net position should be around zero by end of Q2 and then it is just a question of how much debt we want for working capital.

[basem1] 16/4/2018 10:17

Sorry I'll reword that is the debt now 10.4 - 8.6m nett cash = 1.8m ? My reading time is always 7-7.30 and the rns has caught me out.

[basem1] 16/4/2018 10:15

Have we a net cash position at present with cash more than debt ? Sorry if it's obvious

[mad foetus] 16/4/2018 10:13

As I mentioned earlier, the biggest problem with AAZ is its broker. It needs to give them a kick to make sure they are maintaining an active market with a much smaller spread. I've been closely involved with a listed company that grew from a £30m market cap to over a billion, and so know how vital the right broker support is.

[lefrene] 16/4/2018 10:09

This company just keeps delivering on all fronts except for a fair valuation for their efforts. At the rate of cash generation they could likely be debt free in three months if they chose to, although that may not be the best thing to do with the cash. A divi would be nice!