Anglo Asian Mining Share Discussion Threads

[greyingsurfer] 07/2/2024 15:27

Yes, thanks Donald! I did wonder why both were expressed as equivalents, so same overvall production, not 2 different streams.

[katsy] 07/2/2024 14:53

Interesting to see the excitement over at Helium One. I remember on the first day after the initial RNS seeing it at .67p but I know nothing about Helium, how valuable it is, what it fetches on the open market, how easily it's extracted, and transported. etc etc.. so I left well alone. Anyway good luck to anybody in there, always nice to see people making money.

[lefrene] 07/2/2024 14:39

If the production projections come true, and the gold pundits on Utube are to be believed, we'll all be milwionaires this time next year Rodders! LOL

The outlook never looked better, but no doubt the real world will get in the way.

Fair play to the management, they keep working steadily despite the proverbial slings and arrows of outrageous fortune. Just keep putting one careful foot on front of the other careful foot, and the company will get there. Mind you it might help a bit if the President smiled in our direction, considering what the company has been put through over the devious lies of trouble makers.

[all in eol] 07/2/2024 14:20

AAZ bid continues to creep up within the spread 😊
They need to creep up a bit more before they can have my trade back.
Edit bid dropped back to 61p after the 15869 sell

[wanobi] 07/2/2024 14:15

paying above offer for AAZ shares now :-)

[donald pond] 07/2/2024 14:12

I think it is badly expressed. The 2 sets of numbers refer to our expected production but one is measured as if it is all gold, the other as if it is all copper. So we are going to treble production and increase the copper proportion. But all the numbers given refer to the entire annual production, one seen through the gold lens, the other through copper. Does that make sense?

[pogue] 07/2/2024 12:42

More info on Russian titanium.
Basically one company produces 90% of Russian titanium and Russia is the world's 3rd largest supplier of the metal which is very useful in producing war machines. No.1 is China. Can see a possible bonus ball for EEE there.
I assume VSMPO did the research on extraction from sandstone I cannot find out from what ore they produce their titanium though but they are not having problems getting the stuff it would seem so either
a) they didnt need the new technique
b) the costs were higher than the ore they were using
c) they are actually using it.
d) something else entirely
Problem googling is that Russia primary source material is less likely to come up in a search due to language difficulties.

[pogue] 07/2/2024 12:24

Always jam tomorrow at AAZ and you get a black swan while you wait in dodgy jurisdictions as has been demonstrated. Examples of other issues that may or may not happen are a coup or the death of one or more influential with the Azeri government directors. Still holding but who knows what might happen in the next 3 or 4 years while we await the mines coming onstream.

[greyingsurfer] 07/2/2024 12:16

Thanks DP

I have to say I'm a bit puzzled by this remark:

"SP Angel said: "The company has provided a road map to gradually grow its production rate from about 52,000oz (AuEq) and 10,000t (CuEq) to 175kozpa Au and 35ktpa Cu becoming a multi-asset, mid-tier copper-gold producer by 2028."

Effectively, copper will expand from providing 20-30% of production to around 90%."

They appear to say AUeq will increase about 3 fold and CuEq a bit more, by about 3.5x, so how does that lead to CU going from 20-30% to 80% ot total production

What am I missing?

[11_percent] 07/2/2024 12:15

EEE

Cheers guys......will take a further look.

[wanobi] 07/2/2024 12:09

thanx to Bazboa & DP for posting this on the main AAZ thread,,, tis much appreciated chaps, Cheers Wan :-)



06 February 2024

Anglo Asian Mining (AAZ) has made an undisclosed profit from a forward sale position for 4,600oz of gold bullion over a seven-month period from June to December 2023, according to well-placed market sources.

The precise number will likely be revealed later in the year when financial data is released to the London Stock Exchange or at an analyst conference call.

The hedge was made at prices between $1,949.75/oz to $1,979.25/oz when the spot price was $1,947.50.

Annus horribilis
For now, AAZ is ramping up production at its mines in Azerbaijan following an annus horribilis in 2023.

Activity at its flagship Gedabek properties was suspended for about six months amid environmental worries, and after large demonstrations to protest the miner's plan to build a second tailings dam.

An audit cleared the group of irregularities, but AAZ said it would double down on safety to meet community concerns.

"In collaboration with the government, [we have] agreed to a re-evaluation of the technical and environmental aspects of [the] second tailings dam, including the proposed location," said the miner - which is capitalised at £65 million.

The shares are down by a third in five years due to last year's interruption of production and were also depressed by the pandemic. Shares have crashed from 161p in August 2020 to 65p yesterday.

AAZ is hoping for better times ahead. Bill Morgan, finance director, said he was "extremely optimistic about the outlook", with several new mines coming on stream in the next three or four years, to replace pits at Gedabek that are coming to the end of their life.

"Potentially, we could become a much bigger company," he said.

Transition
The miner is at a point of transition - it wants to boost production of copper to take advantage of prospects for energy minerals and move towards becoming a mid-cap.

SP Angel said: "The company has provided a road map to gradually grow its production rate from about 52,000oz (AuEq) and 10,000t (CuEq) to 175kozpa Au and 35ktpa Cu becoming a multi-asset, mid-tier copper-gold producer by 2028."

Effectively, copper will expand from providing 20-30% of production to around 90%.

In the interim, Anglo Asian must rely on two factors that will influence its fortunes. First, the gold price. All good on this front, according to Swiss investment bank UBS.

Gold and silver were expected to climb further in 2024 on expectations that the Fed will start cutting interest rates.

UBS said: "We are expecting gold to be pushed higher by a Fed easing. Also, this comes with a weaker dollar; [we expect] the metal to hit $2,200/oz by the end of the year."

But forecasting is always tricky, and yesterday the dollar hit a three-month high after the Fed chairman Jay Powell sought to rein back rate cut expectations in comments for the market.

One could argue the current elevated gold price is high for the wrong reasons: geopolitical angst and wars in the Middle East and Ukraine. That may not benefit stock indices in the medium term, but it could benefit mining companies, as history tells us many investors look to turn gold into dollars as quickly as possible, redirecting cash into companies and markets. Often, but not always, shares in gold producers outpace the gold price, and capital returns are decent as well.

But at the least, a strong gold price means AAZ can grow revenue and protect margins. Finance director Morgan said the omens were good.

"If you look at gold in the long term, it does go up in line with inflation, and I think inflation is going to persist because of large volumes of central bank debt, among other things."

International relations
The other issue is that Azerbaijan looks too risky a jurisdiction for some investors. But AAZ has been a dividend-paying company and is well connected - an important factor to take into account when investing in the Caucasus.

AAZ chief executive Reza Vaziri, formerly a businessman with links to pre-Khomeini Iran, has struck a production-sharing agreement with Baku, and relations with the government are said to be good. Governor John Sununu of New Hampshire, who served as President George HW Bush's chief of staff, is a significant minority shareholder, and Sununu's son Michael is also on the board.

Vaziri, who knew the late Henry Kissinger, was said to "dedicate much of his time furthering business relations" between the US and Azerbaijan.

AAZ's management holds 45% of AAZ's equity.

Although Azerbaijan has a stable government, the CIA World Factbook noted president Ilham Aliyev secured a fourth term in April 2018 "in an election that international observers noted had serious shortcomings".

The American body said reforms were needed to address "weaknesses in government institutions"

[pogue] 07/2/2024 12:06

Was experimental in 2005 cant find anything since but the process looks straight forward apart from the magnets on molten solution which maybe more interesting but I am sure there is a way to engineer it.
Edit
should add SB has said in the past the technology, or could have been a plant, already exists. That is why I did some searching to find it.

[11_percent] 07/2/2024 12:00

EEE

Extraction process.

pouges link,



It looks like the Russian Academy of Sciences has an extraction process......but is still experimental.....hence SB wants a pilot plant.

However.......article implies that there is a shed load of ore waiting sitting around in the ground in Russia waiting to be processed.......if a process can be found.

[e43] 07/2/2024 11:53

Thanks Pogue,still cautiously optimistic for EEE,caution in Current mkt cap is already quite high,optimistic as think Pitfield probably can be made commercial, IF they can prove the the chemical process can work,a buyout fr a major player would be the preferred result.

[11_percent] 07/2/2024 11:47

pogue,

Cheers....was just about to ask you about your ore extraction research..will have a look.

[pogue] 07/2/2024 11:38

10_percent
have a swatch at this



Edit
haven't watched the interview yet just went from someone's brief notes on LSE and my own knowledge will watch soon though need to be somewhere a bit more private.

[wanobi] 07/2/2024 11:36

apols Mj, I took the 15K & 10K AAZ this morning,,, then went for a walk as I couldn't get anymore :-) GLA LTH's Cheers Wan :-)

[11_percent] 07/2/2024 11:14

EEE

SB video.

Good summary pogue.....its now about how to get the Ti out of the ore.

I get the impression that they will get it out.....gravity separation on one hand or furnace on the other end of the spectrum .....its about the cost of doing it.

However.....a bit of caution for me when he said that there has never been a Ti ore like this discovery.

I will stick my head out......the TI is there, in rock.......and there is a good chance they can get it out.....but that's what they are working on.......hire the experts (mainly done).......define a lab process......build the pilot plant in the desert......in say 18 months time...mid 2025.

Dimond drilling starts in a few weeks.

[donald pond] 07/2/2024 10:41

Here you go baz
06 February 2024
twitter_icon
linkedin-icon
fb-icon
Anglo Asian Mining (AAZ) has made an undisclosed profit from a forward sale position for 4,600oz of gold bullion over a seven-month period from June to December 2023, according to well-placed market sources.

The precise number will likely be revealed later in the year when financial data is released to the London Stock Exchange or at an analyst conference call.

The hedge was made at prices between $1,949.75/oz to $1,979.25/oz when the spot price was $1,947.50.

Annus horribilis
For now, AAZ is ramping up production at its mines in Azerbaijan following an annus horribilis in 2023.

Activity at its flagship Gedabek properties was suspended for about six months amid environmental worries, and after large demonstrations to protest the miner's plan to build a second tailings dam.

An audit cleared the group of irregularities, but AAZ said it would double down on safety to meet community concerns.

"In collaboration with the government, [we have] agreed to a re-evaluation of the technical and environmental aspects of [the] second tailings dam, including the proposed location," said the miner - which is capitalised at £65 million.

The shares are down by a third in five years due to last year's interruption of production and were also depressed by the pandemic. Shares have crashed from 161p in August 2020 to 65p yesterday.

AAZ is hoping for better times ahead. Bill Morgan, finance director, said he was "extremely optimistic about the outlook", with several new mines coming on stream in the next three or four years, to replace pits at Gedabek that are coming to the end of their life.

"Potentially, we could become a much bigger company," he said.

Transition
The miner is at a point of transition - it wants to boost production of copper to take advantage of prospects for energy minerals and move towards becoming a mid-cap.

SP Angel said: "The company has provided a road map to gradually grow its production rate from about 52,000oz (AuEq) and 10,000t (CuEq) to 175kozpa Au and 35ktpa Cu becoming a multi-asset, mid-tier copper-gold producer by 2028."

Effectively, copper will expand from providing 20-30% of production to around 90%.

In the interim, Anglo Asian must rely on two factors that will influence its fortunes. First, the gold price. All good on this front, according to Swiss investment bank UBS.

Gold and silver were expected to climb further in 2024 on expectations that the Fed will start cutting interest rates.

UBS said: "We are expecting gold to be pushed higher by a Fed easing. Also, this comes with a weaker dollar; [we expect] the metal to hit $2,200/oz by the end of the year."

But forecasting is always tricky, and yesterday the dollar hit a three-month high after the Fed chairman Jay Powell sought to rein back rate cut expectations in comments for the market.

One could argue the current elevated gold price is high for the wrong reasons: geopolitical angst and wars in the Middle East and Ukraine. That may not benefit stock indices in the medium term, but it could benefit mining companies, as history tells us many investors look to turn gold into dollars as quickly as possible, redirecting cash into companies and markets. Often, but not always, shares in gold producers outpace the gold price, and capital returns are decent as well.

But at the least, a strong gold price means AAZ can grow revenue and protect margins. Finance director Morgan said the omens were good.

"If you look at gold in the long term, it does go up in line with inflation, and I think inflation is going to persist because of large volumes of central bank debt, among other things."

International relations
The other issue is that Azerbaijan looks too risky a jurisdiction for some investors. But AAZ has been a dividend-paying company and is well connected - an important factor to take into account when investing in the Caucasus.

AAZ chief executive Reza Vaziri, formerly a businessman with links to pre-Khomeini Iran, has struck a production-sharing agreement with Baku, and relations with the government are said to be good. Governor John Sununu of New Hampshire, who served as President George HW Bush's chief of staff, is a significant minority shareholder, and Sununu's son Michael is also on the board.

Vaziri, who knew the late Henry Kissinger, was said to "dedicate much of his time furthering business relations" between the US and Azerbaijan.

AAZ's management holds 45% of AAZ's equity.

Although Azerbaijan has a stable government, the CIA World Factbook noted president Ilham Aliyev secured a fourth term in April 2018 "in an election that international observers noted had serious shortcomings".

The American body said reforms were needed to address "weaknesses in government institutions"

[michaelfenton] 07/2/2024 10:26

Agreed Mattjos especially as the Government were partly responsible for the BS incident?

[pogue] 07/2/2024 10:21

Some interesting stuff re EEE. Basically, SB has started to address the fears of those that don’t understand the extraction process. High grade titanium in sandstone is unusual. Normally its high grades in hard rock and low grades in sand. Both are profitable but have different costs sandstone is soft rock and the ore is TiO2 which is good as most other ore is TiO3 that needs reduced to TiO2 to be processed therefore more cost. High grade TiO2 in sandstone is relatively unknown. I did some research a while back and found that the Russians developed a process using magnets about 20 years ago and from the interview that appears to be the route SB is going. 6 to 12 months in the lab looking at the process then build a pilot plant within 18 to 24 months, presumably from now not after the lab tests. He doesn’t seem to worried about the process and is just cranking the handle to get the exact chemistry worked out. Will need some fund raising obviously for is pilot plant but that will be 12 months from now I expect. That said I don’t hold just now as its clearly being traded so without short term news it will drift lower I expect, probably going to get that wrong though and a monster RNS will hit from left field lol.

[mattjos] 07/2/2024 10:19

wont take much by way of positive news to set AAZ off on a run smartly higher, imo

[mattjos] 07/2/2024 10:10

Results of the election are foregone conclusion.
As soon as the result is proclaimed, pretty damn sure that Aliyev will want to start a campaign of good news to reinforce the wisdom of voting for him.
He certainly wont want any sort of negative news like there is in Turkey just now about recovery form the earthquake.

News on growth in the economy, jobs & opportiunities in a newly revitalised NK etc etc
This will be the order of the day and AAZ can and will be part of that positive narrative going forward.
I do not doubtr that the government and the relevant Ministries will be fully supportive of everything we endeavor to do going forward from here after this recent BS incident.