Anglo Asian Mining Share Discussion Threads

[brasso3] 15/4/2020 22:04

The large institutions use Satellite imagery to monitor the large storage capacity around the world. Most are saying we have 4 weeks left at the the current supply/ demand.

[swallowsflysouth] 15/4/2020 22:03

Those two articles mentioned in my previous post might refer to the same site(s) ?

[swallowsflysouth] 15/4/2020 22:02

America has some spare oil storage capacity -

hxxps://oilprice.com/Latest-Energy-News/World-News/US-May-Help-Oil-Producers-By-Offering-Storage-Space-In-SPR.html

In addition there is this space but do not know how much of it is already full as article dated 31/1/2020

hxxps://www.energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve/spr-storage-sites

[brasso3] 15/4/2020 21:35

Pogue

From what I have read global consumption is down by 25m - 30m barrels a day in March/ April. I cannot see things changing much in May either. The OPEC+ cuts are only 9.7m barrels a day. It will be at least 6 months before the world get back to 95m barrels a day of consumption. I just cannot see how these cuts will make much difference and this is evident in the oil price over the last week.

[pogue] 15/4/2020 21:13

Brasso
When storage is full you will have trouble giving it away. Have heard of some places that has already happened. Oiler’s paying to get rid of the oil as if they shut the well it will be too costly to restart, usually old stripper wells, so they pay someone effectively to take it away as sales cost does not cover the costs of delivery etc. Come the day there is no storage many more will be in the same boat. The thing is it’s not the world storage being full it’s the local storage as a shale oiler is not going to be storing his oil in Saudi so when America is full the loud screams from the Orangeman will be heard as he starts worrying about getting re elected. When that day comes is variable due to the unknowns of fields shutting down, more shut ins longer time to full, estimates vary but if they can hold out till the OPEC+ dodgy deal kicks in they may get a week or two longer and then sneak into a post lockdown recession world where somebody maybe interested in using oil.

[brasso3] 15/4/2020 20:58

What are the thoughts on the bottom in the oil price. Lots of 'experts' talking about $10 - $17 in the next 4 - 6 weeks. There should be no storage left at some point in May. It seems unthinkable but does it get to a point where they have to give it away for free?

[pogue] 15/4/2020 20:39

Bumpa
That price won’t stay long, I have been in since November on BBYB i am using it as a deposit account to be honest buying when the price is right
Edit
There was a 1/2 yearly payment in Jan

[goldrush] 15/4/2020 20:26

CC

Thanks from all of us.

Great write up from Seeking Alpha.

Wonder if Bill will post a video on the Q1 Information RNS ?

[riggerbeautz] 15/4/2020 20:23

Slightly cursing didn’t hold Roxg another day, should have known something was brewing, (rolleyes).

[bumpa33] 15/4/2020 18:58

KK - someone on here was into RRE, can’t remember might’ve been Mr Roper but not sure.

[bumpa33] 15/4/2020 18:55

Wan - aimchaos is Myles McNulty.

Pogue - interesting idea/play.

[kickingking] 15/4/2020 18:55

Good evening all. I am trying to get my head around RRE I know a few of you are into oil companies. Is this the most undervalued oil company out there?
Debt free and sitting on cash worth 2189. Trading below 725p.

hxxps://www.oilfieldtechnology.com/drilling-and-production/27032020/rockrose-energy-well-positioned-to-navigate-economic-situation/

What do you guys think?

[wanobi] 15/4/2020 18:50

amazing, Captain Tom now up to £8m raised for the NHS,,,, so far,,, truly awesome effort Tom,,, incredible,,, you are the man,,,, so very very well done to you Sir,,, Cheers Wan :-)

[hubs] 15/4/2020 18:49

Palace win the League!!!

[hubs] 15/4/2020 18:49

The Premier should be decided on the last three games played, to take account of recent form.

[2sporrans] 15/4/2020 18:44

Thanks CC

Thought the second 1/2 of the article such a concise summary of the upside case it ought to be pasted here:

"The key to serious equity upside is the very attractive ongoing exploration program where management gives very extensive and detailed quarterly reports. At some point, one prospect success will be transformational for the equity holders but it's hard to predict the timing of this. Any new mine should take about a year to bring into production and assuming higher grade ore all else being equal this should lead to strong production growth. Maybe late 2020 or into 2021 for such a discovery to be announced. In the meantime, investors have a low valuation, decent dividend yield and exposure to a rising gold price to enjoy."

JORC/LOM uplift will of course be v. important to the interim valuation; that is the share price between now and 'event' of "one prospect success". [really a process rather than an event and will be a well documented one at that.]

[wanobi] 15/4/2020 18:30

I should have said, it is courtesy of crazycoops on the main AAZ thread,,,, many thanx crazycoops,,,, cheers Wan :-)

[jeanesy] 15/4/2020 18:28

Thank you for finding the article WAN.

[walter walcarpets] 15/4/2020 17:50

Crazycoops: good article, thanks

[mattjos] 15/4/2020 17:49

Nice find CC & thnx for sharing. As you say, a great summary of AAZ right now & very simple for anyone to understand

[wanobi] 15/4/2020 17:31

AAZ - also -

Anglo Asian Mining (OTCPK:AGXKF) (LON:AAZ)
Current management has turned around an incredibly leveraged balance sheet over the last 4 years to a significant net cash position (15% of market cap) and a solid cash payout strategy meaning the current dividend yield is around 6% and looks sustainable. Gold production guidance for 2020 is almost flat in 2019 at 75-80,000oz as operations are somewhat maxed out and grade is gradually diminishing. Hence most earnings growth is in relation to increases in average gold prices through 2020. The key to serious equity upside is the very attractive ongoing exploration program where management gives very extensive and detailed quarterly reports. At some point, one prospect success will be transformational for the equity holders but it's hard to predict the timing of this. Any new mine should take about a year to bring into production and assuming higher grade ore all else being equal this should lead to strong production growth. Maybe late 2020 or into 2021 for such a discovery to be announced. In the meantime, investors have a low valuation, decent dividend yield and exposure to a rising gold price to enjoy.

Cheers
Wan :-)

[crazycoops] 15/4/2020 17:28

AAZ is included as one of a basket of five small cap gold miners included in this Seeking Alpha article. A very good summary https://seekingalpha.com/article/4337487-basket-of-5-small-cap-gold-stocks-average-4_4x-2020-p-e-and-1_93x-ev-ebitda

[wanobi] 15/4/2020 17:27

AVCT - I don't know this guy from Adam, but here you go, you'll have to draw your own conclusions, GLA Cheers Wan :-)

[callmebwana] 15/4/2020 17:04

You too wan. Take it easy. Enjoy the evening.

[wanobi] 15/4/2020 16:44

many thanx to you all for your posts today,, I wish each and every one of you a very pleasant evening in these troubled times... ATB, GLA, cheers Wan :-)