Anglo Asian Mining Share Discussion Threads

[mad foetus] 03/6/2019 16:20

Hmm, there's a 50k trade, wonder how long that took to work?

[laurence llewelyn binliner] 03/6/2019 16:18

#Mattjos, a lot of the share price impacted by POG should be relative to the gearing they have, a % gain relative to their profit margin/Ounce..

Example: CEY: USD900 AISC : 1300 POG : 400 margin, so a +100/Oz results in +25% profit
AAZ : 500 AISC : 1300 POG : 800 margin : +100/Oz but +12.5% on profit

Interest to note that using this 2:1 method has directly worked with CEY's +10% today and our +5%..

But I'm perfectly happy with the result, we closed over 100p.. :o)

Well done all holders, LTH's even more so, really well done..

[mattjos] 03/6/2019 16:03

often the case that gold miners share price react on a 10:1 basis to price of gold so, if gold does go up by 30% in GBP terms, entirely feasible that AAZ goes up 3-fold.
Simple consequence of the cost of extraction being relatively fixed so, the additional consequential revenues drop straight through to Profit in the P&L.

That also ties in with one of my price targets for the shares so, still plenty more to go at with AAZ & some cracking dividends to investors willing to wait.

for those that sell … you had better find another opportunity to deploy your GB£ cash into over the same timeframe else, in real terms, the spending power of those £'s is going to be falling hard

[mattjos] 03/6/2019 15:54

Gold in GB£ .. setting up for what I believe will be a 30% run

[catsick] 03/6/2019 15:41

Not too long before we get back to 1.23 where I baled out of most of the shares I was holding back in Aug 05

[mattjos] 03/6/2019 15:38

Welcome IamBV :-) Great to hear you have been invested for so long and also been buying more. Well done for sticking with it.
Feel free to comment as/when

& thanks for your comments

[laurence llewelyn binliner] 03/6/2019 15:30

Quite a day we're having so far.. :o), even Copper has turned up..

100.5 offer, 98.5 bid with BARC..

[sportbilly1976] 03/6/2019 15:26

Gold nudging the days highs currently - $1319

[cinoib] 03/6/2019 15:21

I see + market trades all to pot again sales and buys in the wrong coloums, bloody fools. Don't know why winns bother to try playing the game different to the rest as they just caurse confusion.

[jamiedodge] 03/6/2019 14:58

God. Not been good and just catching up. They were only supposed to blow the bloody doors off. Good luck all.

[cinoib] 03/6/2019 14:36

Don't know what's hit the market, but a 100 point turn around since this morning is a fair achievment in current world state. even gold has come of it's top.

[wanobi] 03/6/2019 14:24

thanx Rb, I have HL working on allowing me to add some to my SIPP as right now online their system doesn't even list TSX:GCM,,,, if I can I will buy some of these :-) thanx, cheers Wan :-)

[iambv] 03/6/2019 13:51

Hello everyone,

My wife and I have held AAZ for the past 6 years and I have been following this discussion board since Mattjos set it up. I would like to thank all the regular contributors and Mattjos in particular for this, a truly informative board. It has given us confidence to add steadily over those years, even during the period when Bashirov was selling continually and we have managed to accumulate a sizeable holding, at least by our standards anyway !

The share price could get a boost if the results are in the Investors Chronical this week as they are usually supportive of this company.

Regards,

BV

Ps. Have to feel sorry for those who bailed out when we were in single figures, I hope they made their money elsewhere !

[sportbilly1976] 03/6/2019 13:50

100p seller clearing? - 100p trades now nudged up to 100.68p

[riggerbeautz] 03/6/2019 13:43

Hi Wan,

Suppose most people would run away from a Colombian gold miner but Segovia is proving to be an exceptional resource, the grades are outstanding and operations continually improve AISC around low $800’s.

If you recall when I first mentioned it, I thought it was overlooked due to the disconnect and country risk, my initial buys were in the $2.70’s. Turn of year on top of excellent quarter on quarter, they announced the spin off of Venezuelan assets; which the market had pretty much forgot about. The own goal that followed was management decided to raise equity. Killing all momentum short term. I’d took some profits at $4.34 and this made me take more. People say about AAZ and analyst coverage, I expect this move by GCM was as a result of management being persuaded to bring in new Anal ysts!!!

Fortunately it got pulled and management learned their lesson the hard way, it’s now recovering from low 300’s and I think fairly soon we will see $4 again. There was also some arbitrage between warrants being undervalued to the stock price that had to unwind.

Forget Venezuela for now, I used to own Rusoro, met Andre Agapov, it was the biggest goldie out there but oh boy country risk. Colombia was a relative safe haven by comparison lol. This is about reducing debt, proving up resource and lowering costs. Factor in the other side opportunities, it’s a good un for traders and long term investors a.i.m.h.o but being in the money, I would say that :;;;

[wanobi] 03/6/2019 13:05

aha Rb, vid working for me today, TSX:GCM, oh my, going to 400,000 oz Au ($524m worth) & £99m Mcap, alignement with shareholders :-), 15-20% growth per QTR now, reduced cost of production from $1100/oz to $540/oz, 20% of $150m debt funded by management :-)...... financing - created own bond, wow,,,, this is one hell of a story unfolding here,,,, the interviewer is absolutely blown away with it all :-) Shares, management owns 20%ish, 50% II, 30% retail :-) throwing out cash, paying down debt, $50m in cash, tax paid up till next year.... dividends coming along,,, looks too good to me :-)

Is it just locations that are the main risks here?
thanx Rb, cheers Wan

[brasso3] 03/6/2019 11:47

The $5000+ figure for gold are normally justified by what would be required if the developed world was to revert to a gold standard.

[mattjos] 03/6/2019 11:40

lol, those sort of price targets are complete pie in the sky & loads of folk peddling them for years. Cant be taken seriously. If gold were to get to $5,000/oz, most of the world would be back to bartering for goods. Don't think we want to wish for that just now.

Of course, if the price did go past $1,900/oz then I guess that would be possible but, there is a long, long way to go before that possibility emerges.

Just now, over $1,300/oz is very good for AAZ. £1,400 is excellent, $1,700 will see the share price treble where we are today

[brasso3] 03/6/2019 11:36

100k at 100p went through an hour ago.

[someuwin] 03/6/2019 11:31

Gold heading to $5000

Rob McEwen: Keynote: The Bull Market in Gold Equities is Here

[mad foetus] 03/6/2019 11:08

I'm not really mentioning CEY as anything other than a comparison as it has a similar share price. Obvs it is a much bigger company in a very different jurisdiction and possibly benefits by being a pure gold producer rather than having the copper we have

[mattjos] 03/6/2019 11:05

I feel reasonably confident that the broader market is completely missing the potential for the price of gold. It's only starting to warm up right now but, as/when the FED is forced into cutting rates that will be the trigger for it to really motor so, we have the summer months for the pressure to slowly build in gold price

Looking like that first cut in rates will take place Sept/Oct this year .. any earlier than that will be an even stronger signal that the global economy is in real trouble & the flight to gold will be even more pronounced.
Edit: I see the FT and several other sources now expect the first cut (>50% likelihood) may come in July .. that would catapult Gold, imo

I certainly don't see the rate cutting being a 'one-&-done' job either …. they will need to cut several times each month to try and steady the ship

Meantime, we're at 200+oz/day & the cash will keep piling up. FY19 dividend should blow away even the most optimistic of forecasts .. I believe could be over 6c / share

[lefrene] 03/6/2019 11:04

mad foetus, those who wish to buy CEY good luck to them, but I don't think it compares to the quality here. Looks like a little shake by the MM's, good as I still have some dry powder :¬)

[lefrene] 03/6/2019 10:53

That 100p is a psychological point in both directions, both for the seller who wants a nice round £1, but also for holders who see it as a bench mark or new floor.

Mattjos if your $1700 comes to pass that's circa $1150 gross profit per oz, these won't be struggling to leave 100p behind by then :¬)