Anglo Asian Mining Share Discussion Threads

[mattjos] 20/9/2018 20:21

The August 17 breakout, after similar 12 months consolidation, propelled the price from 19p to 55p .. virtually 3 fold increase.This breakout after 12 month consolidation so far a 55% gain.I believe a lot more to come

[jeanesy] 20/9/2018 19:29

Another day , another rise . All looking good here ! I still have to pinch myself that this is actually happening :) What a week this has been !!!

[broken_arrow1] 20/9/2018 19:00

At the current share price the well covered yield is 7%

At £1 a share the yield would be circa 4.5%

[king suarez] 20/9/2018 18:43

Thanks, JB. Useful info there and sounds a sensible strategy. Perhaps some small incremental expansion can be made in the meantime where appropriate, as you have suggested.

[jbravo2] 20/9/2018 18:39

The constraints now are quite widespread.

The main one of course is that the plant is running at design max.
That's 120t/hr for AL and 95t/hr for flotation.

The crushers are also maxed out around there.
Clearly also the mining fleet isn't designed to produce anything too different from that, sure we have some excess hence our stockpiles but they have been built slowly over years.

The AL plant would be too expensive to expand IMO and it just won't happen. That also treats the stuff that will run out first so no point expanding that. Forget that IMO.

The flotation can be expanded relatively easily and relatively cheaply. This is where money will be spent in the future IMO.
We'd need more crushing, and possibly more grinding but again that could be added. (I'm less certain of the capacities of the SAG and ball mills but we must be close to their limit now). This would also of course need an expansion of the mining fleet but again easily done.

For now I suspect they're happy to run Gedabek at this rate for a year or two while they evaluate exactly how much stuff they've got and where. And of course what is in it.

I think we'll see something start at Ordubad to expand production first. My bet is between 12 and 24 months but I know matt thinks quicker than that.

[jbravo2] 20/9/2018 18:32

Don't worry macmuck. You're now in and there is so much headroom on this price you'll be sitting pretty soon.
We've all been accused of "oh you would say that you want to sell" etc. It happened at 20p, 32p, loads of times at 40ishp.
We're still all here.
The potential here is mind boggling.
You'll do well. You'll relax a bit when you're clear of your buy price. All you need, occasionally at times of consolidation, is some patience. Look how relaxed jeanesy became. Even lefrene is panicking less now.
:D

[king suarez] 20/9/2018 18:28

Does anyone have an opinion on what is the largest current constraint to increasing production near term?

a) Expansion of processing facilities? Does anyone know the maximum throughput of the current facilities?

b) More/better mining equipment and infrastructure (and more workers)?

c) Proof that the size of the potential underground mine resources warrant further substantial capex - i.e short enough payback period + long enough mine life

d) Physical space to expand facilities?

e) All of the above!?

[macmuck] 20/9/2018 17:16

Just broke our Funds only rule for kids ISA and added. 62.5. Should have grew some a couple of weeks ago but did not have you lot's confidence or experience. Thank you all for your fine input!

[supercity] 20/9/2018 17:09

Check out the 3 year chart on HOC I wouldn't be at all surprised if we copy their rise from the 50p level especially if funds want to get on board and have to buy in the open market

[plasybryn] 20/9/2018 17:04

Thanks everyone especially King S for such a comprehensive reply.Cheers & good luck everyone

[jbe81] 20/9/2018 17:03

Another big volume day

[king suarez] 20/9/2018 16:43

Hi Plasybryn,

1) Can't really comment on that, sorry.
2) Yes, 4 current mines. Gedabek, Gosha, Gadir, Ugur.

Gedabek - currently mining open pit, with a newly revised JORC showing 1m oz gold resource, with c350k oz proven and probable reserve gold + 100m tonnes copper. This will give 5-6 years of open pit mining. This mine life and reserve has been extended several times through exploration drilling and likely to continue.

Gadir - underground mine. Higher grade. JORC due by end of 2018. No current resource estimate has been provided. It has been more or less confirmed that this connects to underground Gedabek via tunneling and fan drilling between the two areas. Recent drilling found some grades of c90g per tonne gold outside known areas of mineralisation.

Gosha - small, high grade mine. 40k ounces. Unknown if this will be increased.

Ugur - c200k ounce deposit discovered in 2017 on the Gedabek area.

The company also have a wide resource area in nearby Ordubad, with numerous exploration targets, which was drilled originally by Soviets. This formed part of the original IPO document and a CPR indicated a whopping resource of c7m oz gold equivalent (much of the deposits were copper with smaller high grade gold deposits. Some exploration is being done here with the current programme.

3) Much of the potential remains unknown, but the company is spending $18m over a 3 year exploration programme to better define the resources over the whole licence area. If you pay credence to the IPO document and the Soviet drill results then there are huge resources to be uncovered. What has been explored at Gedabek so far exceeds prior data and is continually growing.

4) Possibly due to the relatively small market cap, lack of dividend (until recently) and lack of PR - company haven't needed to raise funds via equity so no big PR pushes have been done until recently, which seems to be attracting new investors.

5) Current broker, share price Angel, have a 84p target, but most here believe the company should already be at 1.20p with higher targets for long term assuming production can be grown and resources proved up.

Some very LT holders here who could provide a lot more information on the other threads.

[donnatella] 20/9/2018 16:33

Plasybryn, you might want to check Mattjos thread, most of the information you are looking for is on there.

[wrighty46] 20/9/2018 16:33

Please go to the other active aaz thread everything you need is in the header. I think this will be bought out in the next few years at £4-5. Just my opinion.

[plasybryn] 20/9/2018 16:28

Been having a look at this stock for the first time. I like the look of it but a few observations which perhaps someone can help with.
1. Great to see so much skin in the game, but directors look quite old. Perhaps the likes of Bill Morgan etc. are being set up to take over.
2. I believe there are 4 mines in total but haven't been able to find out if the Life of Mines is an issue.
3. Also is the size of the overall resource considered good ?
4. There only seems to be one Institutional Investor. I was wondering why this was?
5. Are there any Broker targets please?
Cheers

[mr roper] 20/9/2018 16:22

The gift that keeps on giving.

[wrighty46] 20/9/2018 16:21

The after hours trades will be interesting today I think. Surely must be a few. And hopefully close at days high. Definitely someone wants in now.

[wrighty46] 20/9/2018 16:12

It appears we have an aggressive buyer. Happy days.

[lefrene] 20/9/2018 15:54

Well what can you say, a WHOLE DAY without even a single rns! :¬)

[catsick] 20/9/2018 15:52

Still going up without an rns today !

[celeritas] 20/9/2018 15:51

So did I, barc just gone back up.

[brasso3] 20/9/2018 15:44

At various points today its been possible to sell online in 100k amounts.

They want your shares!!!

[lefrene] 20/9/2018 15:07

bozzy_s,

One possible aspect of the impeccable behaviour of the management here, is that they might get contracted by the Azeri government to manage extractions in other parts of the country. No financial risk, just supply the expertise and ethos for a set percentage of the tonnage. Wouldn't do any harm to the cash flow.