Anglo Asian Mining Share Discussion Threads

[goldrush] 13/5/2020 13:05

Riggerbeautz

....and re the dividend he also said ....demonstrates the company's confidence..

[riggerbeautz] 13/5/2020 13:02

Yes I’d just watched the link. All good, only traders sold this morning imo. Most investors are standing firm and possibly some adding because they can wait for news.

Q3 looks like where the main action will be though they might let out some tell signs around the AGM. Looking forward to a big fat dividend. Like the ...We can afford to pay 35% fcf because we wanted to be generous to our shareholders.... words to that effect

[jbravo2] 13/5/2020 12:53

Superb video thanks brasso

So it sounds like we get a hint about the future plans before the 21st
Then in Q3 we’ll hear how much gold there is for the next few years.


And get another divi declared.

Kerrrrr ching.

Makes me laugh when there’s a lack of confidence. That video was the antithesis of that.

[mattjos] 13/5/2020 12:53

Great video Bill. Thnx for posting up Brasso.

Going to be some news along shortly then

[goldrush] 13/5/2020 12:48

With thanks to Brasso3 on main thread....

Enjoy.....Bill's best video yet....

Brasso313 May '20 - 11:46 - 34983 of 34994
0 5 0

[brasso3] 13/5/2020 12:43

We know the SPA note will be pathetic and the Hardman note will be fantastic based on previous form.

[2sporrans] 13/5/2020 12:42

Thanks Brasso

The last 4 minutes were great news.

Nice that there's going to be another ~$6.7k rev. from the 2nd chartered flight consignment [net of the 12.% to A.]

The really good bits came after that.
The JORC delays down to CV19 and the exploration news.
Have to listen again but seems as if Avshancli-Gilar highly likely to be developed for production over next 2-3 years.

All in all, enough to persuade me to bag another 2k.

[ilostthelot] 13/5/2020 12:31

Bill is definitely getting better at these videos. He seemed rather confident. Looking forward to hearing more on the 21st.

[mad foetus] 13/5/2020 12:30

Handle come off cup and handle at EML!

[qazwsxedc69] 13/5/2020 12:15

Good video. And great to hear some clarity coming on 21st May. Sounds exciting.

[goldrush] 13/5/2020 12:10

Brasso3 Many thanks.

Great video by Bill....shows they are fully attuned to the way forward for shareholders .

And he confirmed 2 Brokers Notes will be coming out one from SPA and the other from Hardman.

[donald pond] 13/5/2020 12:10

Good interview, Bill seemed very happy with the world.

[lefrene] 13/5/2020 12:02

I liked the casual "We just flew another 4,600 ounces out this weekend". That's about $7 + millions worth at current prices. These guys don't waste money, that's hardly a luxury suite there.

[mattjos] 13/5/2020 12:01

4.5c at circa GBPUSD of 1.25. That's circa 3.6p payable in 9 weeks time.
That'll keep me quite happy while we wait for explo results … which one of these days will be a monster at Ordubad

[klosters65] 13/5/2020 11:58

If that doesn't bring in some buying – nothing will.

[brasso3] 13/5/2020 11:54

So another RNS on or before the 21st May. :)

[lefrene] 13/5/2020 11:48

Quite agree Mattjos, much of the AiM constituents are a punt with boards seemingly constituted of secondhand car salesmen, whereas AAZ with it's exceptional management is an investment. I'm a happy holder and will await developments on the exploration front.

[donald pond] 13/5/2020 11:42

And as that moron mad foetus said earlier, profits are likely to be 30-40% higher next year on price of gold alone. And to be honest, with net cash likely to be above $30m right now, they will need to either start spending or increase dividend still further.

[swallowsflysouth] 13/5/2020 11:42

As far as DDDD goes, the directors holdings says it all, thats confidence for you.

[goldrush] 13/5/2020 11:39

donald pond ....as per your post....exactly.

A dividend increase in 2020 from 8c to 9c (Only a conservative 11% increase with gold at $1,700 ) this alone equates to a share price of around 150p yielding 5%....as you say not to be scoffed at.

[mattjos] 13/5/2020 11:38

agreed .. for those that can be bothered to do some basic maths and have an awareness of what the hell is going on in the world just now, AAZ's dividend is becoming ever more valuable … only most AIM punters continue to ignore it and seek instant daily trading gratification (with much higher risk).

[2sporrans] 13/5/2020 11:29

Yes, agreed BD

Feeling a lot more comfortable about AAZ than UK right now.

Like now we have -ve rate 2 yr gilts and ~25% GDP contraction.

So much dysfunction ahead.
e.g. how the heck will pension funds provide incomes via annuities unless they follow the CBs lead and hold riskier assets than gilts?
Few pensioners are equipped/suited to manage their own capital to generate a sustainable income stream to live off of.

For those that are, we are forced to take on ever more capital risk to make money in any which way we may.

Apols for drifting off topic when there's plenty more to discuss on AAZ.
But the context has relevance.

[terropol] 13/5/2020 11:24

Conclusion: Good earnings results highlight record generated revenues, high earnings margins led by low operating costs and strong FCF generation during the year with the Board announcing an increase in the final dividend payment bringing the total to 8.0c. This is equivalent to a 6.2% yield on the average share price in 2019 and 5.4% on the current spot price. The decision to distribute 36% of the annual FCF, above 25% envisaged in the dividend policy, reflects confidence of the Board and management in the business supported by strong team, earnings and balance sheet. Outlook remains strong with the Company reiterating 2020 production guidance at 65-67koz, exploration works returning encouraging results pointing to a potential extension of the Gedabek life of mine and gold prices trading at multi year highs.

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

[terropol] 13/5/2020 11:23

Anglo Asian Mining* (AAZ LN) 118p, Mkt Cap £134m – Strong FY19 results with the Board announcing an increase in dividends

BUY

Revenues increased to an all time high of $92.1m (2018: $90.4m) reflecting stronger gold prices and higher copper concentrate sales proceeds.
Gold bullion sales came in at 54.0koz at an average realised gold price of $1,410/oz (2018: 59.5koz at $1,265/oz).
Copper concentrate sales totalled 10.3kt with revenues contribution of $16.7m (2018: 7.7kt and $15.4m).
AISCs of gold production averaged $591/oz (2018: $541/oz) remaining in the first quartile and highlighting operational efficiencies and low cost status of the jurisdiction.
EBITDA amounted to $50.5m (2018: $49.8m) implying strong 55% EBITDA margins (2018: 55%).
PAT was up 18%yoy at $19.3m (2018: $16.3m) and EPS of 16.91c per share (2018: 14.32c).
FCF, including cash in transit, totalled $25.5m (2018: $28.9m) after accounting for an increase in the working capital ($7.6m v -$0.6m (ie cash generated) in 2018) largely driven by an increase in ore stockpiles and heap leaching at the end of 2019 (+$9.7m) as well as incurring $4.7m in capital expenditures (2018: $15.3m) and $4.5m in exploration costs (2018: $2.9m).
The Company is debt free since February with $26m in the bank as at 31 March 2020 which does not include $5.9m worth of gold produced in March and sold in April.
A stand by credit facility has been agreed for $15.0m as a precautionary measure should COVID-19 related restrictions require external sources of funds. The Company estimated that it would cost around $1m per month to place Gedabek on care and maintenance and around $4-5m per month to continue running it at full production.
The Board advised a 4.5c final dividend taking the total payout for 2019 to 8.0c (2018: 7.0c) or $9.2m.
Shares will go ex-dividend on 2 July 2020 with the dividend to be paid 30 July subject to approval by shareholders on 23 June 2020.
Operationally, Gedabek production facilities continue as normal with no cases of COVID-19 recorded on site. Additional expenses related to VOICD-19 are estimated at just $0.1m per month attributed to chartering aircraft to ship gold dore to Switzerland, staff overtime and some other logistical costs.
The team is continuing with extensive exploration programme focused on extending the life of mine at the existing mining operations as well as potentially bringing in new mineralised zones into production.
Exciting exploration results point to a potential extension of the Gedabek life of mine that currently stands at 2024 with updated mineral resources and reserves expected in Q3/20.
The Company reiterated 2020 production target of 75-80koz GE (2018: 82.8koz) comprised of 65-67koz of gold and 2.2-2.4kt of copper.
Conclusion: Good earnings results highlight record generated revenues, high earnings margins led by low operating costs and strong FCF generation during the year with the Board announcing an increase in the final dividend payment bringing the total to 8.0c. This is equivalent to a 6.2% yield on the average share price in 2019 and 5.4% on the current spot price. The decision to distribute 36% of the annual FCF, above 25% envisaged in the dividend policy, reflects confidence of the Board and management in the business supported by strong team, earnings and balance sheet. Outlook remains strong with the Company reiterating 2020 production guidance at 65-67koz, exploration works returning encouraging results pointing to a potential extension of the Gedabek life of mine and gold prices trading at multi year highs.