Anglo Asian Mining Share Discussion Threads

[celeritas] 10/10/2018 10:40

Lol terropol, thats now £2000, the rules were changed in April this year.
Its tax free in a ISA or Sipp.


A basic rate tax payer would pay £225 on a 5k dividend, higher rate tax payer would pay £975

[wanobi] 10/10/2018 10:38

2sp, hmm, yes you are correct, I have gotten a bit carried away... AAZ is now worth over 50% of my SIPP, but its up by 25% at 68p today.... AAOG I've sold & I have sub 5K positions in ORM, TXP & now STAR as starter buys...

Yes, seems a classic gamblers mistake, first bet pays of massively so expect it to happen again and again..... I am now beginning to realize how fortunate I am to have stumbled across AAZ and the mattjos thread when I did,,,,, & that it will not be easy if even possible to find another such situation!!!

young no, naive when it comes to AIM, ADVFN, posting and so on, 100% yes....:-)

Shell - nope, didn't know that at all, thanx.
Will consider your questions later, thanx.

Please do look in more often, thanx.. :-)

Cheers
Wan

[celeritas] 10/10/2018 10:32

Today is the last day for anyone who doesn't want to be on the register to do something about it. You will be recorded if you hold after todays close.

[terropol] 10/10/2018 10:23

The market must have changed the rules in the last few years, it always used to be Holding the stock overnight on Ex dividend days.

Well guys you can get £5000 dividend free of tax...

[wanobi] 10/10/2018 10:22

AAOG - my last post there;

Hi all, sold my 50K shares this morning at a small loss, with the help of some great investors on my thread I decided not to take the risk with my cash that the drill might fail yet again.... I wish you all the best with it and will not be at all disappointed to see AAOG succeed and treble in value etc... I mean that,,,,,, for me the degree of risk here, upon reflection,,,, is just not for me, thanks.

Good Luck
Cheers
Wan

[wanobi] 10/10/2018 10:16

bozzy, thanx so much for that post & mattjos last night,,, guys I cannot tell you how much I appreciate you helping me through this apparent minefield... After due consideration this morning I sold my 50,000 AAOG shares at a total loss of £46.35....

It feels good to have done that, you guys really opened my eyes and I now have my £4315 back in cash.... I don't much care if AAOG now trebles on a successful drill, I'm just happy that with your help I've been able to see the risk I took for what it truly is,,, a terrible bet!!!

2sp, thanks for your post also, I will respond later as I'm tied up in the day job right now....

Cheers All
Wan

[terropol] 10/10/2018 10:15

Hummm, may be today the last chance to buy for dividends...

The ex-dividend date is the date after which people buying shares would not be entitled to the dividend. The ex-dividend date is usually 2 days prior to the record date in order to give the custodian time to register all new shareholders. If you buy shares prior to the ex-dividend date, you will receive the dividend.

[celeritas] 10/10/2018 10:09

As long as you purchase a stock prior to the ex-dividend date, you can then sell the stock any time on or after the ex-dividend date and still receive the dividend.

Looks like its gone Ex-divi today, lol.
We will be marked down the dividend in the morning, you just have to hold tonight's close to be eligible.

[2sporrans] 10/10/2018 10:06

So, tomorrow the share price drops 2-3p, all else remaining the same....
But will all else remain the same?

The possibility of a concurrent RNS apart - [esp. Gadir JORC] as posted by Matt and others above - it won't amaze me if some of the Midas or herd-momentum holders panic out upon seeing the sudden drop at the open, presenting yet another bargain dip.

[bo doodak] 10/10/2018 09:58

From what I understand, the general rule is, in order to receive a dividend, the trade settlement date must happen on or before the record date the company has set for the dividend. If it's after, you won't receive the dividend.

[2sporrans] 10/10/2018 09:57

Today is the last day you can buy and get paid the 3c dividend.

The Ex-dividend day is the day AFTER the entitlement to the relevant divi. expires; as the preface "Ex" implies.

As Bleepy posted above:
"The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank of England at 4pm each day from the 15 to 19 October 2018."

So, let's hope the fear-of-no-deal Brexit farago extends just a little longer; ideally intensifying over 14-19 October. + any other £ bashing news comes out then.

[mattjos] 10/10/2018 09:54

You could take advantage of the ex-dividend date price drop, buy next week using a T20 trade & pay for that trade with the dividend funds when they come into your account

[mattjos] 10/10/2018 09:50

irrelevant really ... those holding receive the dividend on 8th November is the main thing.

Many will use part/all of that dividend to buy more shares in the company .. I certainly will.

very much looking forward to the Q3 update ... I am unable to second-guess how the new crusher/flotation plant will have performed through the warm summer.
Good thing is we will be back on track with Copper production & I believe both Silver & Gold output should also rise

[basem1] 10/10/2018 09:33

That's definitely correct. Why would you call it ex dividend if not. 2-3p will be marked down first thing tomorrow.

[basem1] 10/10/2018 09:32

Today's the last day. I agree with someuwin. Tomorrow they go ex dividend.

[terropol] 10/10/2018 09:31

SOMEUWIN, you can buy shares up to 16.30 on the 11th and receive dividends.

[2sporrans] 10/10/2018 09:29

Dropped in, purely out of curiosity.
Surprised to find so many quality posters and posts.
Excellent Bozzy!

Wanobi
When we last discussed your basic investment situation and where you intended to go with it, you had sensibly decided to invest the majority of your lump of cash into mainstream funds, perhaps a few Ftse 350 companies; maybe even into asset classes other than ordinary-share equities.
Back then you said you were looking to 25% max. in AIM stocks.

For what's worth, I'd go lower than 25%; a fair bit lower as a novice investor.
10% max. but 5% only is sensible.
Gives you enough to learn actively with skin in the game.
You've been lucky to happen upon AAZ, getting in on the cusp of an up-rating and just before it switched from debt paydown to a become a dividend payer from 25% Free cash-flow.
And what an attractive dividend.

Learning about the investment game - and yourself - is a very long term process.
Indeed, one never ceases to learn; have to just to keep up with evolutions.
Though one may learn a lot over even a few months, there will remain vast assemblies of voids to be filled.
After a couple of attentive years, you may have progressed beyond novice.

You are clearly young and have decades ahead to build up wealth.
You can do with a patient approach that rewards understanding while minimising the good/bad luck [punter] factor as far as may.

Just a throwaway comment, purely to illustrate a long view mindset.
Seeing you have looked at a mug-punt 'oiler'...
Did you know that Shell [which currently pays a dividend of ~6%] has never cut its dividend since WW2?
What does that tell you about its shareholder policy and balance sheet management?
Now, think about how, relatively easy, it is to know when the oil/gas industry is in it's capital investment / production cycle.
So was 2015-16 a v. good time to buy oilers with a 2-5 year view to be overweight?
Further, might now be a good time to buy into 'mid-stream' [think rigs, pipelines etc], e.g. Schlumbeger?
I'll leave those ones with you to think/study over.
Perhaps you already have :0)

There is never a 100% black/white conclusive answer to such questions looking forward; only so with hindsight.
Success in investing largely results from identifying prospects where the probabilities are well in your favour.
Then, while your investment pretty much requires only the absence of 'bad luck' [or rather a 'black swan event'] to prosper, diversification will, usually, save the bacon come the unforeseen debacle.

[mattjos] 10/10/2018 09:29

Q3 updates:

Friday 13th October 2017
Thursday 13th October 2016
Wednesday 14th October 2015

So possibly Friday 12th this week or more likely Monday 15th, next week.
In either event, whilst you might expect a 2p pullback on the ex-dividend date tomorrow, that might very well be immediately nullified by the Q3 update.

That then leaves 10 weeks of the year during which we expect the Gadir JORC and some sort of update on the first-blush heli-survey results

Sell if you must / don't want the divi (for tax reasons) but, it is such a relatively short window for further news to be released.
Before we know it we'll be getting the Q4 production update in middle Jan & then the 2019 production target in February.

[bleepy] 10/10/2018 09:08

An interim dividend of US$0.03 per share will be paid gross in respect of the year ending 31 December 2018 to shareholders on 8 November 2018 that are on the shareholders record at the record date of 12 October 2018. The shares will go ex-dividend on 11 October 2018. All dividends will be paid gross and in cash. A scrip dividend or any other dividend reinvestment plan will not be offered by the Company.

The dividend will be payable in pounds sterling. The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank of England at 4pm each day from the 15 to 19 October 2018.

[someuwin] 10/10/2018 09:05

"...The shares will go ex-dividend on 11 October 2018."

As I understand it if you buy on or after the ex-dividend date you won't receive the dividend.

[brasso3] 10/10/2018 08:39

Tomorrow is the last day.

[someuwin] 10/10/2018 08:37

Buying today is the last chance to get the interim dividend correct?

[ilostthelot] 10/10/2018 07:47

Good post bozzy.

[bozzy_s] 10/10/2018 00:49

Hi Wanobi, been reading above with interest.

Here's what I do when I first notice a company, or if a company is tipped somewhere on these boards.

1) Look at its trading history. Is it profitable more often than not? What is its lifetime profit/loss figure? Look on balance sheet for 'retained earnings' or 'retained losses/deficit'. In the case of AAOG, as with all oil explorers, it is loss making. It has made a lifetime loss of £12.3m so far.

2) Has the company a history of raising money by diluting shareholders? AAOG did in March 2017 and May 2018. Was the company forced to issue shares at a large discount in order to raise funds? For AAOG in May 2018 it was a 20% discount to market price at 8p - an all time low.

3) Is there likely to be a fundraise any time soon? What's the cash burn of the company (see cashflow statement), and how much cash do they have in the bank / how much unused credit facility? For AAOG they're spending £2.5m per 6 months (from interim results). So their £6.5m on the balance sheet means no likely placing in the short-term (they'd already done that in May/June).

4) Do the directors own a significant %age of the shares? How much do they pay themselves? This figure is to be found in the annual report, on the company's website, under the note 'director remuneration'. For AAOG it's quite steep for a zero-revenue company at £509k. And only 1 director owns any shares (as of that date) - Brian Moritz who owned roughly 1/200th of the company.

5) Do the management have history, either good or bad? When Mattjos mentioned the name Sefton, that rang alarm bells. I remember the fraud that was Sefton Resources.

However I can't find a link between those 2 Seftons.

In the case of AAOG, after about 5 minutes of research I'd have written it off as a potential investment. It's always been loss making and will be for the foreseeable future. Directors have no incentive to increase the share price, as they don't have skin in the game. They pay themselves over half a million pounds a year directly from share placings.

Red flag after red flag. Typical AIM stuff actually. There have been literally dozens of these companies over the years, promising the world, raising funds from suckers, management earning a nice living until reality eventually dawns and they can't raise any more money. The company delists as 'the market valuation doesn't reflect the true value of assets' and 'the lack of liquidity in the company's shares' and 'to save on regulatory / compliance costs'. Then the company gets liquidated. Any assets of value picked up by insiders.

Then the management start again with a new 'exploration' company with exciting prospects. Raise funds from suckers. Rinse, repeat... Maybe 1 in 20 of these actually go on to actually selling oil. And some of those even make a profit. But getting there meant diluting shareholders to oblivion. Not a problem if management don't own any shares themselves!

AAZ scores very well on all above points - absolutely unique to AIM.

GENL is an oil company I'm in, and it also does ok on the above. I decided I wanted exposure to rising oil prices. GENL stood out as being under priced considering the amount of oil it produces, its extremely low production costs like AAZ, strong cashflow like AAZ, and increasing production like AAZ.

[wanobi] 09/10/2018 22:08

yep, thanx mattjos, you have helped me greatly this evening...

I have been too trusting of what I've seen & heard and not looked behind the scenes to substantiate what I've seen and heard etc....

note to self,,,,,,,, DYOR before taking the plunge....

cheers
Wan