Anglo Asian Mining Share Discussion Threads

[baddeal] 23/5/2020 19:55

I use ajb for one of my sipps. I hold some of my aaz in there. Easy to use ap and website. Lower costs than some so it does what it says on the tin.

[user2007] 23/5/2020 19:33

Hi all. Good discussion as always. Thanks.Im finally going to setup my SIPP which was mentioned by Mattjos. Ive done a quick research and AJ Bell SIPP is currently my choice. It is suprisingly cheap capped yearly fee to 100 gbp plus some tranastion fees.Does anybody here use this product? Any cons or pros? Or recommendations?Thank you..

[callmebwana] 23/5/2020 19:32

Oh,one more thing. There is always a consolidation in the PM sector under the circumstances this world of ours is in at the moment.
I just wish this whole scenario would end soon. The sooner the better for all concerned IMO.
It can start to play on shareholders nerves at times ,I am sure by reading some of the posts on this and the main thred. Some are getting dissatisfied with the way and at the rate things are progressing.
Well everone to their own,I am holding on until the fat lady sings. NAI.

[plasybryn] 23/5/2020 19:18

Have a look at AAU. JV deal to be announced by end of June. FCF, no debt apart from working capital and lowest quartile costs. Lots of exploration potential. If JV deal goes ahead (very likely) a nice big tasty one off special payment to shareholders has been intimated. Buy note from Panmure Gordon.

[wanobi] 23/5/2020 18:19

so, here we go,,, simplifying,,, a possible,

transaction with a subsidiary of Anglo Asian who own the PSA with the Government of Azerbaijan.....

AAZ has been in recent discussions with AZERGOV & OTHER parties....

in relation to potential transactions!!!!

AAZ regularly has discussions with OTHER parties regarding the development of the Group.

To me,,

AAZ has been approached by a big fish looking to buy AAZ outright, but AAZ needs AZERGOV to approve it and allow the PSA to pass on to a new owner as part of the deal...

seems the most likely fit with these words!!!

Cheers
Wan :-)

[wanobi] 23/5/2020 18:12

very kindly re-posted by Bleepy on the main thread and worthy of another look at the wording of this :-).... Cheers Wan :-)

A reminder of statement released 22/8/2019...

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
22 August 2019
Anglo Asian Mining plc
("Anglo Asian" or the "Company")
Statement re Media Comment

Anglo Asian Mining PLC, the AIM listed gold, copper and silver producer focused in Azerbaijan, notes the recent press report regarding the Ministry of Economy of Azerbaijan engaging a consultant to advise on a possible transaction with R.V. Investment Group Services, LLC, a subsidiary of Anglo Asian whose principal asset is the Group's production sharing agreement with the Government of Azerbaijan dated 20 August 1997.

The Company notes that, while it has been in recent discussions with the Government of Azerbaijan and other parties in relation to potential transactions, such discussions are preliminary and no terms have been discussed or agreed. There can be no certainty that these discussions will result in any transactions. The Company further notes that it regularly has discussions with other parties regarding the development of the Group.

A further announcement will be made if appropriate in due course.

[wanobi] 23/5/2020 18:11

many thanx SiE, I shall listen to that for sure,,, probably tomorrow now :-) LOL,,, been doing too much work today :-) LOL,,,, cheers Wan :-)

[bleepy] 23/5/2020 18:04

A reminder of statement released 22/8/2019...

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
22 August 2019
Anglo Asian Mining plc
("Anglo Asian" or the "Company")
Statement re Media Comment

Anglo Asian Mining PLC, the AIM listed gold, copper and silver producer focused in Azerbaijan, notes the recent press report regarding the Ministry of Economy of Azerbaijan engaging a consultant to advise on a possible transaction with R.V. Investment Group Services, LLC, a subsidiary of Anglo Asian whose principal asset is the Group's production sharing agreement with the Government of Azerbaijan dated 20 August 1997.

The Company notes that, while it has been in recent discussions with the Government of Azerbaijan and other parties in relation to potential transactions, such discussions are preliminary and no terms have been discussed or agreed. There can be no certainty that these discussions will result in any transactions. The Company further notes that it regularly has discussions with other parties regarding the development of the Group.

A further announcement will be made if appropriate in due course.

[wanobi] 23/5/2020 17:16

yep, agreed cmb,,,,, but, we don't even know the nature of such talks,,,

The words 'Buying & Selling' of the PSA could mean so many things,,,,,

when all that might be going on is a simple straightforward renegotiation of the terms of the existing PSA, eg,, the gov wants to up its share to 15% or 20% or whatever,,,,

or

AZERGOV wants to buy AAZ out of the PSA, so game over for AAZ in AZER,,

hence, the talk of looking outside of AZER,,,

but, then,

they also say they are considering options INside AZER too,

so

what does that mean, a second PSA or current PSA expansion for other CA's in AZER

or, perhaps a

JV/TO of AG by AAZ

or,

TO of AAZ by AG

or,

AAZ has been approach by a big fish looking to buy AAZ outright, but AAZ needs AZERGOV to approve it and allow the PSA to pass on to a new owner as part of the deal

or, or, or LOL :-) LOL

so much ambiguity leading to uncertainty, leading to a perception of higher investment risk and so on and so on....

Cheers
Wan :-)

[wanobi] 23/5/2020 17:08

yep, agreed doc_oj, thanx, cheers Wan :-)

[bleepy] 23/5/2020 17:02

Extension of Current Mine Life
The Company is in a very strong position with significant exploration upside at all three of its Contract Areas. The exploration programmes are being designed to be rolled out to allow time for "dovetailing" exploration results into resources and ultimately reserves to extend the current life of mine. The Company is confident that the resources will yield extensions of operations to provide significant shareholder upside from the metal in the ground being converted to revenue.

This work is being planned to optimise the life of mine for each property within the current permitted activity timeline in the Production Sharing Agreement ("PSA"). Assuming the two available five-year extensions in the PSA are requested by AIMC for each property, the permitted production periods are as follows:


Mine - Year of submission of notice of discovery - Last year of permitted production

Gedabek 2008 - 2033
Gadir 2012 - 2037
Ugur 2016. - 2041
Gosha 2012 - 2037


The psa start date for each discovery is given at time of submission as in above table.

Gedabek start date 2008 is given a permitted timeline of 15yrs plus 2x5yr extension should they be requested taking it to 2033.

So the first psa extension would be Gedabek and not due for extension until 2023. Gadir 2027, Ugur 2031 and Gosha 2027.

Aaz have demonstrated that they meet all requirements for extension timelines as per psa agreement. So psa extensions should be just a formality.

Psa timelines for new discovery start when those discoveries are submitted. So that allows many producing mines with different psa timelines to operate within the same contract area.


I don’t see present govt discussions are centred around psa extensions, the subject being the purchase of this agreement. I stand to be corrected if misunderstood.

[gold finger 1] 23/5/2020 16:25

I look at it like this.
We have the right to extend the PSA so no problem there.
We have enough LOM to last till 2024, still plenty of time on that alone.
We seem to be going to give a JORC in Q3 to extend what we have already, how long will that add to LOM,we will have to wait and see. We seem to have 5 new areas that look promising to add to what we have now, But if all goes well will not come on line till 2024. That is the when we will extend the PSA. But to invest in more plant we need to have the PSA extended by another 20 years so it warrants the cost to add new plant to increase the production from 80,000 ounces a year to what ever they find in the results. It will take time and we have plenty of time on our side.
We are being given a larger % than he 25% of free cash flow for divis. We may only produce 80,000 ounces a year but with a AISC of under $600 an ounce. Some companies can be producing double 160,000 ounces a year at a AISC of $1200 and only making the same money as us doing 80,000 a year.
I am in a position now that i have another 25,000 pounds to find a home for in the next week or so. So for me the share price can drop more. Then that money will be coming in here just for the divi alone.

[callmebwana] 23/5/2020 15:54

Thank you guys for your commisrations.
Wan,and Jeajesy. Such is life. Perhaps I should not have posted that particular post. I did that just to bring this virus into high light. Thank you again.

Back the AAZ. My post earlier on.
Perhaps the Co. has delayed the mine development because of this virus and feel better hoding on to the cash.
No one knows what is happening in the talks. GLA.

[doc_oj] 23/5/2020 15:31

@wan: you are discounting a massive fact, this was a virtual meeting, it will have an influence on your body language, I think so :)

[jeanesy] 23/5/2020 15:25

I am sorry to hear about the loss of your friend CMB , that is very sad news :(

[baddeal] 23/5/2020 14:53

MattjosAgree with numbers re sipp but remember the LTA limits and tax implications. No point getting in with a good tax break and getting hammered when you take the money out

[plasybryn] 23/5/2020 14:53

Which RNS do I need to read to understand more about what is going on here please? According to the terms of the PSA, following the submission of the Notice of Discovery, the Company has six months to submit a Development and Production Programme to the Government of Azerbaijan for approval.

[wanobi] 23/5/2020 14:47

many thanx someuwin, interesting Cheers Wan :-)


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[mattjos] 23/5/2020 14:20

Keeping the sums very simplistic & therefore using a fictional share price:Sell 10,000 AAZ at £1 per ea. From Trading Account & switch into SIPP at same price.That would be £10,000 SIPP contribution. you immediately get the 20% added to the SIPP account & later can claim the other 20-25% in your Tax return.you've not got 10,000 AAZ in your SIPP + £2,000 Cash.Use the £2,000 Cash to buy a further 2,000 AAZ shares at £1 each.you've not got 12,000 AAZ shares in your SIPP.When the FY dividend is paid in July you will receive 12,000 * (circa) 3.65p = £438 (tax free).Assuming the share price stays pat for the period, you now have £12,4348 in your SIPP as compared to £10,350 which you would have had in your Trading Account had you done nothing + there is a further £2k you are claiming back off the tax man in your tax return (which may or may not be partially used up by Capital Gains Tax on the original sale if you breach the £12.5k limit).The above very simplistic but, seems sound to me if you can afford to do it.

[wanobi] 23/5/2020 14:12

AAZ - okay, so I've watched it twice more today,,,, very interesting, the only time BM touches his face/cheek that I can see is, guess where,,, immediately after the answer he gives to the nationalisation question,,, 'never, ever, ever,,,, cue touch of cheek...... obviously body language is certainly not 100% accurate, but,,,

Body Language - Neck or face touching
Neck or face touching is the adult equivalent of toddlers sucking their thumb.
When we're uncomfortable, our mammalian brain's natural response is to feel comfortable again. This is when we assume what Joe Navarro calls "pacifying behaviours." It's when we rub our necks, touch our cheeks, or rub our eyes (even when we're not tired): When we're experiencing an unpleasant emotion, our brain sends signals to our body to stimulate nerve endings (ex. sucking a thumb for toddlers or rubbing our necks for adults). This releases calming endorphins into the brain, which "pacifies" our uncomfortableness. Men touch their faces, necks, and arms. Women touch their necks, clothing, jewelry (particularly if they have a necklace), arms, and stroke their hair. All of these pacifying behaviours demonstrate insecurity and limited confidence.

I cannot read too much into this though as it might just mean he's uncomfortable being asked that question, whether there is anything to hide in his answer or not!!! To me, he gave a very forceful answer,,, too forceful,, who knows,,, seemed genuine to me.... Just an interesting observation to note.....

also noted, there was a lot of hopefully's in his language...

confirmation that they are looking at other opportunities BOTH IN & OUTSIDE AZER & that yes they are actively in talks!!!

I think he genuinely misunderstood the PSA expiry question, took it to mean any change to the current PSA terms, 12.5% etc and not 'Is there a date when the PSA ends' which I think was the actual question....

I shall have to study his body language on the other presentations now to see when else he touches his face etc...

Cheers
Wan :-)

[mattjos] 23/5/2020 14:08

Particularly for Higher Rate Tax payers here, assuming you have already used your Personal ISA Allowance (& potentially your wife's ISA Allowance) for the year, i believe a Bed'n'SIPP makes a lot of sense on this share.Given the current economic situation, it seems inevitable to me that the higher rate tax relief on SIPP contributions is going to be removed as part of the efforts to pay for all govt QE & that is likely to get whacked in the Autumn budget, if not sooner. They could even lower the ISA allowance each year .... 100% Guaranteed that big tax rises are coming down the pike soon so, do al you can to take advantage of what's on offer now before it disappears.I'm not a tax expert or a financial adviser so, please do your own research and form your own opinion but, the combined higher tax relief on the contribution + the knowledge that the dividends wont be taxed is a big benefit.You'll get 40% or 45% back from the taxman on the value of the contribution so, that gives you a helluva 'buffer' on your switch price + save the tax on the dividends later in the year.From memory, it's up to £40k SIPP contribution that gets the tax relief so, I will be doing just that while this generous tax relief remains in force.Appreciate it means you cant get at the money in a hurry (depending on your age) but those who are very young still and can take an extended view + those near or over 55 already can get at it.These are extraordinary times we are living in & personal financial planning more important than ever before, imo.

[bazboa] 23/5/2020 13:32

What is the plan to get to mid tier status? 80-100k is certainly not that in my opinion. I sold a few trading shares on Friday as it was predictable that the share price would go down. I imagine it will continue to do that until the next news item...whenever that maybe. I'm sure I will get the opportunity to buy my shares back lower and I imagine lots of others have done the same.

[someuwin] 23/5/2020 12:52

Re: CHF

At £2m it's priced less than a lot of shell companies.

It has a main listing (not AIM). World Class geologists. Largest license footprint in Cyprus and has already identified 30 prospects and targets.

Ceo Martin French owns 4.84%

But also the following significant shareholders...

Claudio Ciavarella 7.10%
Fahad Al Tamimi 3.77%
Leo Berezan 6,87%
Glenn Olnick 3.35%

Al Tamimi and Ciavarella are Chairman and Vice Chairman of Kerr Mines (TSX:KER)

"Kerr Mines’ focus is to commence gold production of its Copperstone property in the United States.
The Board seeks to create value for its shareholders by generating cash flow from existing assets and expanding the resource base via exploration or through strategic acquisitions."

Fahad Al Tamimi

"Mr. Al Tamimi is a Saudi-based businessman with global investment activities. Previously, he was President and CEO of SaudConsult, the largest engineering firm in Saudi Arabia responsible for many large infrastructure and construction projects in the country.
He was also a 50% partner of Worley Parsons Arabia, which undertook major infrastructure projects in the oil & gas, energy and a mining project worth over $5 billion in Saudi Arabia."

Berezan & Olnick appear to be businessmen with interests in various companies.

...Main point being that these well heeled guys have invested in CHF. Have contacts and experience building companies and raising money. And will not want to see their personal shareholdings in CHF being diluted.

All goes to make CHF a punt well worth taking imo.