Anglo Asian Mining Share Discussion Threads

[callmebwana] 15/7/2020 09:51

Double post !! :0/

[callmebwana] 15/7/2020 09:51

Hi Wan,let the AAZ share price gyrations
continue,if you are not planning to sell or buy any then things will sort themselves out over time. Just sit back and collect the divi.
Enjoy the day and relax. I am having to take two cold showers a day to stay cool here.
I hope the vaccine works and I can make some travel plans for the future.
Thanks for your input in all subjects.
ATB.

[bleepy] 15/7/2020 09:47

2s

Aaz have a track record of understating and over delivering with minutiae detail often embedded in the rns. The finer details merged with previous reports outline the strategies and direction of the company. And we couldn’t ask for a better team at the helm.

[bonio10000] 15/7/2020 09:45

Yup - but markets can't wait 6 months these days.

All they will be doing is producing more of the FY production in H2 at higher prices.

[mad foetus] 15/7/2020 09:42

Good spot from Matt on the indication that there might be a 2m share long position on SBs. Unless the majority belongs to an unleveraged lth (and I think it may) there could be some fishing for stops going onIt's bizarre that if the company had reported 5k more production the price would be up. Whereas what they have said is that production will be sharply up in H2 and we're going to start accessing the juicy stuff, which is a much bigger gain going forward

[wanobi] 15/7/2020 09:36

great post KS, thanx, agree, exciting times ahead,,,,,, :-) provided those vaccines start to work out, there is no escalation to all out war and price of gold keeps rising :-) LOL LOL,,, I'm beginning to think we'll be ok on all of those three now :-) Cheers Wan :-)

[wanobi] 15/7/2020 09:34

steep hill that Clovelly, although there is a tractor service back up if you get slaughtered in the pub down below I seem to recall :-) LOL LOL,,, mind you it's been decades since I last did that LOL,,, enjoy your day Rb Cheers Wan :-)

[2sporrans] 15/7/2020 09:29

Bleepy

"Gold doré production from 7 May to 22 June 2020 was shipped to the refiner"

Good spot, hadn't found it on first quick read.

Hopefully a further chartered flight since June and $1800+ sale of the
consignment.

[king suarez] 15/7/2020 09:23

Not great those results at AAZ on first glance - didn't expect production to be impacted to that extent, but perhaps naive of me given Covid.

They say that part of the reason for production decrease is 'decreased grade from Gedabek open pit' but in the table they present the grade has actually increased from Q1 to Q2 from 0.86g/t to 0.99g/t. It is actually UGUR grade that has dropped, but overall grade of all mines combined up from 1.03 to 1.04g/t so the drop in production is really down to just less ore mined, due to material supply and staff working hours etc as explanined.

V interesting comments about a)underground portal of higher grade b) re-processing 100k tonnes of previously higher grade heap leach material. Sounds like the company has options for upping output in H2.

Key will obviously be the JORC report and explo results - think this will be a relatively short-term blip in the grand scheme of things and happy to hold for now.

[2sporrans] 15/7/2020 09:23

fz

I get it that what's being achieved is laudable given the Covid context.
An immense challenge just to keep to plans and schedules, let alone come up with
changes to plans as the situation suddenly changes as e.g. happened wrt Ugur depletion.

The context of $1800+ POG is obviously huge too.
Just 14 months ago POG was stuck $1280-1320/oz.
Could the surge to $1800 in just over 12 months have been anticipated?
Even 6 months ago, the AAZ POG price was assumed to be $1480/oz av. for 2020.
Now that's blown away.
A challenge indeed to make rapid adjustments to this, exceptionally benign
context in a hurry, when Covid days disrupt so much.
e.g where is Steve Westhead right now?
At home, online.

What the Covid has taken away in lost productivity, it has more than handed back via consequential CB/Gov't largess
with the high flying POG. Copper going fine too [not for Codelco etc though].

[bleepy] 15/7/2020 09:18

Agree with jb, a stellar update taking into account the adjustments imposed by the Covid restrictionists. Well done Reza and team.

They have seized the opportunity of mining the remains of Ugur contributions as it nears end of life and albeit lower grades as the pog is some $400/oz higher this year.

Great to see Gosha coming back on stream and await the further exploration news there.

* Copper production increased to 648 tonnes (Q2 2019: 448 tonnes)

* Gold doré production from 7 May to 22 June 2020 was shipped to the refiner and 90 per cent. of the Company's share received prior to the end of June

* Current FY 2020 production guidance of 75,000 GEOs to 80,000 GEOs and revenue guidance of over $100 million at current metal prices remains unchanged with various measures being taken to increase production in the second half of the year

* New portal opened with a decline currently being constructed to allow underground mining of high-grade ore beneath the Gedabek open pit starting in Q4 2020

* Previously heap leached ore with high residual gold grades being recovered from old heaps and reprocessed by agitation leaching

* New JORC resource and reserves statements to be released by the end of Q3 2020

* Baku office remains open


Measures to ensure FY 2020 Guidance is achieved
The Company is carrying out several measures to ensure the FY 2020 Guidance is achieved:

* A new portal has been opened and a new decline is being constructed of approximately 500 metres to access the high-grade extension of the ore body under the main open pit. It is anticipated the decline will be completed around the end of the current quarter depending on the hardness of rock encountered. It will join the tunnel currently being constructed from the Gadir underground mine to give the two egresses required to commence mining. It is anticipated underground mining of Gedabek ore will begin in Q4 2020.

* Around 100,000 tonnes of previously heap leached ore containing gold grades greater than two grammes per tonne has been identified. This ore, which was processed in the early years of the Company's life, will be recovered from the old heaps and retreated by agitation leaching in H2 2020.

* The final lift of the tailings dam wall is almost complete, which is releasing earth-moving equipment that will be transferred to this task.

Anglo Asian CEO Reza Vaziri commented:

"The first half of the year has presented a number of challenges for the Company. However, it is pleasing to note that we have maintained gold shipments and increased our net cash position by $3.2 million during the quarter and by $8.0 million since the start of the year.



The new portal construction indicates they have a mine extraction plan in place following exploration and development drilling and tunnelling the past 18mths. Speculation as to whether this new mine will form part of the Q3 jorc update.


News in the pipeline this Q3...

* JV announcement

* H1/20 exploration activities

* 2020 Iterim results

* Jorc updates

* pog achieving all time highs

[riggerbeautz] 15/7/2020 09:18

Well I hope it will be just under 140 by the time I’ve gone up and down Clovelly and sat somewhere around Westward Ho :)

Qaz made a point earlier, you really can’t make a fat lot trying to trade because of the spread, good luck to those that do, I’ll just wait for a nice chunky dividend to appear myself.

[gtaval1] 15/7/2020 09:10

I hope 'shortly' isn't the same as 'imminent'.

[mattjos] 15/7/2020 09:09

Gold breaking out again. Silver over $19. Copper over $6,400 .. & folk are selling. Really?

[wanobi] 15/7/2020 09:08

or maybe this has been their focus jeanesy ?

A new portal has been opened and a new decline is being constructed of approximately 500 metres to access the high-grade extension of the ore body under the main open pit. It is anticipated the decline will be completed around the end of the current quarter depending on the hardness of rock encountered. It will join the tunnel currently being constructed from the Gadir underground mine to give the two egresses required to commence mining. It is anticipated underground mining of Gedabek ore will begin in Q4 2020.

they must know there's lots & lots of good stuff down there in my humble opinion :-)

GLA
Cheers
Wan :-)

[mad foetus] 15/7/2020 09:07

It would be good to get more info on expectations for the dip down zone. It's been something I've had in mind as a huge relatively higher grade resource for some time. Let's hope we get a few lines in the exploration update

[bonio10000] 15/7/2020 09:04

Meanwhile, PM prices look like the might be breaking out of the $1795 - $1810 range.

[friendzarin] 15/7/2020 09:00

I started a post last week with the following.

"Having asked some questions of Bill recently I was left with the impression they are doing a remarkable job in an understated way in circumstances quite frankly that we assume are more benign."

This update brings that home.Operational issues can and will be overcome by this team they show that time and time again.

The potential and opportunities remain the same and I'm looking forward to see how they can be advanced by the joint venture update due "shortly".

[mattjos] 15/7/2020 08:54

At long last! We're going underground at Gedabek.What I have been waiting for ever since we visited site and saw what was there when we went into Gadir. We were denied the opportunity to traverse the tunnel leading off the main decline (towards Gedabek Open Pit) but, it was clearly there and pointed out to us.Underground at Gedabek is effectively starting the journey down, following the source of the surface expression of the mineralisation. Gold & Copper grades should immediately start to improve ounce we run this ore through flotation & we now also have fresh interim source of ore for the Agitation plant.The company has made significant progress, imo & under the most difficult of circumstances .. the crew do indeed deserve a medal.The figures themselves were pretty much as i had expected but, the news on Gedabek underground is earlier than i had expected (particularly given CV-19 situation) & for me, this is a landmark event which we should all be celebrating.They've done a pretty quick job on the tailings dam wall also. That does soak up a lot of loaders, haulers, graders etc. Graders which can now be used to create roads to new locations?Great job guys. Great job

[jeanesy] 15/7/2020 08:51

I wonder if the JV has caused them to become distracted. Lets hope it is for good reasons !

[cinoib] 15/7/2020 08:51

Ouch, I see it but I don't believe it, well maybe I do, after the way this share has been manipulated over the past 8 months. But down 14p at the open, even that is being very greedy by the MM's as if they haven's screwed the shareholders enough already.

[2sporrans] 15/7/2020 08:51

wrt my above post

Simply put, production follows development, follows intensive drilling exploration.

The only way the development of the U/G mine below open pit could have
happened sooner than it has would have been by going in from the open pit itself to explore the body, then develop what commercially desirable resource was found.
All done in parallel with the ongoing U/g exploration.
Expect this would add an extra cost in lost output from the open pit due to disruptions
and also likely in that the new access would be going in somewhat blind, in advance of
the ongoing u/g exploration - fan drilling from X-passages, so maybe not located too well.

But now [only Now!] is [or seems to be] be a good time to go in; i.e. u/g exploration has verified good resources, so know what/where to target the new access from main pit.

[jbravo2] 15/7/2020 08:50

You betcha inaminute

If we get to 90% of guidance for the year I think we’ll have done well.
Plenty seem to disagree.
As others have pointed out HOC certainly won’t do that, they’re running closer to 50%.
Covid is accelerating worldwide. It’s sometimes hard to remember that as currently we relax lockdowns in the UK etc.
Baku is currently back on full lockdown, even public transport cancelled this time. (Or rather it was last week... haven’t heard this week)

[mad foetus] 15/7/2020 08:46

As I've said many times, even on big moves it is very difficult to sell and buy in cheaper in any size.