Anglo Asian Mining Share Discussion Threads

[baddeal] 24/11/2020 09:44

Disappointing production guidance even given the circumstances. Needs to be a real step up next year, either in actual production or clear route to a material increase if aaz is to achieve greater value from here I think otherwise price will drift in/around where we are now

[lefrene] 24/11/2020 09:19

Considering the circumstances of 2020 in Azerbaijan, to only lose 10% of the expected production is remarkable, and it's not as if the buried metals have evapourated, they are still there to be dug up. I hope those employee's conscripted into the army return safe and well, and not traumatised. 2021 looks like it could be a very good year, lots of irons in the fire. Copper finally catching up with the 'experts' predictions of about 5 years ago, and if Biden does get into the White House the money spigots will open even wider, so gold ought to carry on upwards.

At the moment I believe gold is being 'played' ahead of end of month options expiring, lets see how many option holders stand for physical delivery. That could be interesting.

[goodgrief] 24/11/2020 08:58

So quiet from SW lately. I've been wondering whether he's been conscripted too!?£2 by Xmas.

[2sporrans] 24/11/2020 08:51

Ditto dp

added 2k to my stash.

On the divi.
Not bothered if there's no special.
What i want to see is another 0.5c on each of next years payouts.
And well covered.

[bleepy] 24/11/2020 08:51

@Brasso

Thanks for the copper breakout - update prediction chart targeting $4 - $5+.

Copper in positive territory this morning towards that target bodes extremely well for Aaz as we report output in GEO.

[terropol] 24/11/2020 08:45

Agreed MadFoetus.

[mad foetus] 24/11/2020 08:34

You could interpret that RNS as getting all the bad news out of the way. It's not that bad, but it does pave the way for unambiguously positive stuff

[bleepy] 24/11/2020 08:16

Excellent news considering circumstances...



Now that a peace agreement has been signed, which appears to have ended the fighting in Azerbaijan, the Company will, in due course, inform the market on its plans for the three contract areas, included in the Company's 1997 Production Sharing Agreement with Azerbaijan, that are located within those areas that have now become accessible.

Anglo Asian CEO, Reza Vaziri, said "On reflection, this has been a challenging year for the Company. The difficulties started with the on-going restrictions imposed due to the COVID-19 pandemic. The year is ending with a peace treaty in place between Azerbaijan and Armenia with international peace-keepers helping maintain the agreement.

"Despite all these headwinds, it is a testament to the entire workforce that the Company has continued in operation and remains on track to achieve a turnover of over 100 million dollars for the year, with a significantly strengthened balance sheet, whilst still paying dividends to shareholders."

[interceptor2] 24/11/2020 08:02

Update as anticipated with production reduction at the top of guidance at 10%, but have kept revenue estimate at over $100m.

With what seems a strong peace deal in place then we should see positive news releases about the 3 contract areas now accessible over the course of 2021 as well as potentially more positive outlook as 2021 progresses with a return to a full workforce.

Shorter term there are factors that will keep the price depressed like pressure on the POG and sentiment due to vaccines news, but patience as ever is required to continue to hold here for an possible improving outlook in 2021.

[jeanesy] 24/11/2020 07:59

I think you need to read my post more carefully RB ! I will be one of the ones topping up when the opportunity arises. Some of us have been a supporter of the company much longer than others and know what's what !

[2sporrans] 24/11/2020 07:58

there's still a spread of 4k in the target with less than 6 wks to year end.

maybe there's a concern over Covid impaction as well as the usual weather risk.
on the bright side, still hope of 72 gEO year end.
That would imply the new underground resource is delivering well.
Very well actually, given the interruptions.

[wanobi] 24/11/2020 07:54

drip feed the positive RNS's now DP, hopefully that's the plan :-) Cheers Wan :-)

be nice if Gold could play ball now :-) LOL,,, always seems like there's one variable against AAZ at all times,,, but that's just investors paranoia I guess LOL :-)

[thistimemaybe] 24/11/2020 07:54

So there is an RNS letting us know about a drop in production.

Info on contract areas to follow. If the use of the word ‘liberate̵7; was to keep Azerbaijan on side you’d hope they in turn would let AAZ toot their little horn!

[donald pond] 24/11/2020 07:52

Would like to get an update on Conroy. Obviously they can't say anything about the mines in NK until things are clearer.

[wanobi] 24/11/2020 07:51

JSE, thanx to MT for this, cheers Wan :-)

Why The Energy Transition Will Be Fantastic For Small Oil Companies - Oil Price.com

Small, independent oil producers are seeing the potential for growth over the next decade as major energy companies look to invest in renewables. As big companies are being forced to introduce greener policies, independent producers could profit from this change. Paul Blakeley, chief executive of Jadestone Energy told the Financial Times on Monday., “It won’t be a Shell or BP that will be the last man standing in the oil and gas space… It will be the small independents.”.

This comes in response to the uncertainty surrounding oil, following a drop in demand in 2020. The Covid-19 pandemic has driven major oil producers to invest in new technologies and renewable alternatives sooner than anticipated to keep up with market trends. However, Jadestone Energy, which employs 220 staff and produces 10,000 bpd expects this shift to open-up greater opportunities for small producers. Blakeley hopes to be producing between 50,000 to 75,000 bpd in the next five to ten years.

Despite stocks falling in March this year, alongside the energy industry as a whole, they quickly leveled out and started rising again by April, unlike some major oil competitors. With a market capitalization of $305 million, Jadestone is reassuring its stakeholders of its future by maintaining its low-risk appeal. With the oil demand continuing to increase in Jadestone’s region of focus, the Asia-Pacific – Australia, Vietnam, and New Zealand, the outlook looks bright for this independent.

Although the demand for oil has dropped in 2020, it is likely to pick up rapidly in some parts of the world over the next decade. For example, the Asia Pacific region could see a demand increase of 25 percent by 2040 compared to 2019 according to predictions.

However, this demand could shift away from the world’s top oil importer, China, to the Southeast’s other giant, India. India’s demand is set to increase by as much as 5.8 million barrels per day by 2040, according to a 2018 OPEC report.

Other larger independents have also been making headlines this fall. In October, Pioneer Natural Resources acquired Parsley Energy for $7.6 billion including debt. This makes Texas-based Pioneer the largest independent oil and gas producer in the Permian Basin. Having worked together previously, the merger expects significant savings and greater pressure on regulators in the region. Working in the Permian Basin, the world’s most prolific oilfield with a production of 558,000 bpd equivalent, Pioneer hopes this will ensure it rides out the Covid-19 slump.

Independents, both big and small, are showing the oil industry how they are not only wreathing the storm but expect significant growth and expansion into new markets in the coming decade.

[wanobi] 24/11/2020 07:50

AAZ RNS regardless of how the market/SP reacts is wonderful for my sleeping level,,, to hear that the current operation has not been damaged in any way is a big relief to me,,, slowly but surely they can now get on with business in a seemingly much safer environment for years to come :-),,, that in itself may well attract new buyers, 1st time buyers who have been watching from the side-lines through all this trouble and strife,,,, GLA Cheers Wan :-)

[wanobi] 24/11/2020 07:46

Good Morning, Good Health and the very best of luck to us all this morning :-) Cheers Wan :-)

always look on the bright side of life LOL LOL

[riggerbeautz] 24/11/2020 07:36

Jeanesy, If you’ve never watched Monty Pythons “the life of Brian”, you really should do. There’s a song in there made for you ;)

[allseeingeye1] 24/11/2020 07:33

This cut has been factored in, however if they hit the higher end than the cut is marginal in respect of what has been going on.

Main thing is the peace deal that is going to derisk this company going forward. Dividends will be paid and gold is take a small knock.

3 new contract areas will add nicely to our portfolio and 2021 production should materially be up.

[2sporrans] 24/11/2020 07:30

At end of Q3: 50,702 GEOs produced.

Say year end is 69,000 GEO.
Implies Q4 production of around 18,300 GEO.
Much same as Q3 - was 18,130 GEO.

Could be worse.

What really matters is the 2020-21 target.

[jeanesy] 24/11/2020 07:27

AAZ rns . Production figures lowered by about 12.5 % . I suspect the market will focus on the reduction rather than the 3 new areas we may be able to mine. Could be a top up opportunity as POG is down to 1830 too !

[2sporrans] 24/11/2020 07:22

edit: The target cut is 10%, going by mid-point numbers; 7,500oz reduction from 77.5k to 70k GE.

Set to impact Q1 too:

"Staff members who were conscripted due to the territorial dispute with Armenia are expected to return to work early next year after the military starts to demobilise."

At least some of the uncertainty has been cleared.

[qazwsxedc69] 24/11/2020 07:09

RNS maintaining production and revenue >$100m. By inference the special divi going to happen, despite the cratering of POG.

[mr roper] 23/11/2020 23:11

Interesting article