Anglo Asian Mining Share Discussion Threads

[maxplus2] 18/8/2020 11:12

243m cap value.3.347 billion debt. Cash 57millionNo of shares 620.24millionEnterprise value = (243m+3.357b-57m)/630.24m = £5.69. That doesn't make sense

[maxplus2] 18/8/2020 11:08

Thank you. What do you think of AA?

[riggerbeautz] 18/8/2020 11:08

Thanks Wan, every now and again you hear buy and hold is dead in these markets, a guy who I hold up to be my trading guru said you can’t buy and hold forever. Whilst true, I once showed him my longer term holds and said “investingR21; or sitting awhile longer than sessions, days, weeks or even months, does still work! Which he had to concede for me I was right, as I’ve found over time, I’m far better at doing that, than highly frequent trading. Pick an entry, ride your winners to an acceptable sell price, only then take profits works best for me; each to their own though.

[ilostthelot] 18/8/2020 11:02

One day rodders thanks for mentioning DSV. 👍

[klosters65] 18/8/2020 11:01

The market makers simply do not want to hold any shares.I can only conclude that it is the very low volume of trading that puts them off from wanting to do business.

[qazwsxedc69] 18/8/2020 10:53

How anyone hasn't filtered Cinoib yet is beyond me.....

[wanobi] 18/8/2020 10:51

great post KS, thanx, cheers Wan :-)

[wanobi] 18/8/2020 10:50

exceptional performance Rb,,, awesome, well done to Bumpa for alerting you to it,, great to hear these success stories :-) Cheers Wan :-)

[riggerbeautz] 18/8/2020 10:47

I’ve said before on AAZ, Bumpa first told me about this as Bashirov was selling down, followed awhile and eventually bit. I’d have to dig out my first purchase but it was sub 6p, bought more and more as conviction grew. Hanging around 5 years has been fruitful and yes benchmarked against some of my Canadian stocks AAZ has totally underperformed this year.

However, I’m content being paid a dividend and that it’s a relatively stable hold because of the management and their aligned interests, very rare do you see this on AIM. I’ve recently shed my trading batches and been quiet in doing so, not to draw the talking it up to dump line. My average is now 3.69p, by the time of the next divi I’ll be in for free and I’m sat on a fair chunk. But being patient has always bought my largest gains.

[king suarez] 18/8/2020 10:35

The bidder will set an offer price that they feel fairly reflects the enterprise value of the business (to them) less whatever discount they feel they can get away with (i.e would be accepted by shareholders). This includes the value of the debt (and cash) on the balance sheet.

The current share price represents the market cap only.

Enterprise value = market cap + debt - cash.

Whether or not the company is at risk of a cheap takeover partly depends on the ability to service the debt (i.e pay annual interest costs) and the cash generation as a proportion of that debt financing cost i.e how much 'free' cash in being generated from the 'stable cash generation' you refer to above. This is why company's often report debt to turnover ratios and other such financial metrics/targets.

Then there are other things to consider in an offer price, such as synergistic beneifts/economies of scale for the purchaser and also any intangible assets, that are harder to measure - i.e the value of a 'brand image' and 'loyal customer base/reputation' etc..

[brasso3] 18/8/2020 10:26

Cinoib

AAZ was up much more yesterday than all the gold miners on my screen. You were not so negative about AAZ 2 weeks ago when it was at 175p.

[goldrush] 18/8/2020 10:26

Cinoib

HOC GRL,GFM CGNR to name a few....others have turned now a bit given the gold price rise e.g POG which was down earlier, FRES which was flat now up....Remember with the close yesterday AAZ would be marginally down from mid price....

[maxplus2] 18/8/2020 10:24

I have a question on takeover. How does a bidder takes account of company's debt when it is about to be taken over? But the company have stable cash generation. Is the company taken over cheap? Let's say the company's share price is trading at x pence

[cinoib] 18/8/2020 10:17

Brasso, I'll take the gains then and some are big.
Goldrush, don't know which goldies you are looking at but mine screen shows all goldies up bar one. I'l let you guess which one, the best today is PAF up 8%.

[king suarez] 18/8/2020 09:39

AISC will probably be a bit higher this year due to the lowered production guidance. The overall cash cost (c$40m) / cost of sales (c$55m) has been remarkably consistent over the last couple of years though - but might creep up with the move to (more) underground mining?

[goldrush] 18/8/2020 09:29

Brasso3

You are spot on....a number of metal plays are down today so not catching the gold surge as yet.....re AAZ part of the fall is due to the high AT price last night which was not the mid price....

[brasso3] 18/8/2020 09:18

You should never let yourself get shaken out of a stock through boredom. This will have its day and catch up with the percentage gains made elsewhere in the gold market.

[jeanesy] 18/8/2020 09:01

I have been in since the 5p days ODR and slowly built up my position as my confidence increased. I have traded a few like WAN and made a few quid . I now have a large holding ( for me anyway) and wont be selling until the picture changes . All looks rosy to me . Yes it is a frustrating share at times and i agree with you it has rarely pleased to the upside recently, but it has already bagged 30 times from those early days and that is part of the problem I think for those now wanting to invest. But I believe in the management and there are lots of very knowledgeable posters who keep us informed . I also sometimes contact the company myself and they are very helpful and approachable people. Bill Morgan always replies even if he can't tell me , quite understandably , what Id really like to know !

[jeanesy] 18/8/2020 09:01

I have been in since the 5p days ODR and slowly built up my position as my confidence increased. I have traded a few like WAN and made a few quid . I now have a large holding ( for me anyway) and wont be selling until the picture changes . All looks rosy to me . Yes it is a frustrating share at times and i agree with you it has rarely pleased to the upside recently, but it has already bagged 30 times from those early days and that is part of the problem I think for those now wanting to invest. But I believe in the management and there are lots of very knowledgeable posters who keep us informed . I also sometimes contact the company myself and they are very helpful and approachable people. Bill Morgan always replies even if he can't tell me , quite understandably , what Id really like to know !

[terropol] 18/8/2020 08:47

Lefrene, do not worry about that, higher gold price more profits and more dividends. Ex dividend day not to far away...October will soon be here.

[lefrene] 18/8/2020 08:46

Yes only making $1400 an oz, all those tens of $ millions in the bank, and those huge divi's to pay out, I guess we'll be bust in a fortnight!

[qazwsxedc69] 18/8/2020 08:43

Suspect people are selling out due to (relative) lack of share price acceleration here, which of course depresses the share price even more.

Brave being out at the moment though with the JORCs due to drop any day now....

[wanobi] 18/8/2020 08:42

I can only speak for myself ODR, but, yes,,,, although,,, I joined the AAZ party way too late for the 5p shares,,, but, I started buying at around 40p and continued to add all the way up :-), also played around with a trading batch along the way which has netted me a few quid on those up/down moves you've described, plus 4 very useful dividends :-)

Cheers Wan :-)

[lefrene] 18/8/2020 08:41

Normal service resumed, gold nudges up, AAZ nudges down.