Anglo Asian Mining Share Discussion Threads

[mattjos] 28/1/2016 20:56

Ferries, yes, I do understand the dynamic.There are pros and cons .. Any half competent accountant will know how to play the PSA to their best advantage in the current phase of the company development. Ie. Maximise the losses, with the framework, at this phase. The more losses they can roll up (& by the PSA contract, carry forward indefinitely), the longer they can hold off the PSA switch & Corp Tax when they swing back to profit. Fundamentally, the PSA seems to favours a capital intensive growth company as well as the state.Bill seems a hugely competent chap and the accounting team around him will know how it all works .. I'll wager he's unearthed a couple or three opportunities, quite within the framework & when he says they are comfortable with debt levels, I'm sure he is just that.

[ferries5] 28/1/2016 20:28

Mattjos. The quicker it happens the better it will be for shareholders.

It will only receive 87.5 of gold revenues from Gedabek till all money spent there is recovered, Once that happens it reverts to the joint venture Gov. 51% AZZ 49% . Each venture is viewed separately. An example, The money spent on Gosha cannot be recovered from gold mined at Gedabek, though the loss at Gosha could be offset against the 32% corporation tax the company pays. But as you aware you must have a profit to offset a loss.
The point is at the moment, If AAZ is giving all the money it earns to banks as debt repayments , It leaves no return for share holders. So only when AAZ has no or very little debt can it make a return to shareholders.

Regards

[mattjos] 28/1/2016 19:53

That is not going to trouble us for at least the next 3 years

[ferries5] 28/1/2016 19:46

Cyberbub , Yes. 32% on aaz 49% share

[cyberbub] 28/1/2016 19:33

Just for someone like me who hasn't been invested for that long, once our losses are used up (which will take some years!) do we have to pay 32% tax AND give the Govt a chunk of all the gold we mine?

[muddy_40] 28/1/2016 19:17

More on the IMF/WB visit



No loan talks with IMF, WB – Azerbaijani minister

Azerbaijan isn’t in talks with International Monetary Fund (IMF) and World Bank (WB) for raising $4 billion in the form of loans, said Samir Sharifov, the country’s finance minister, Jan. 28.

“Our condition is not so deplorable to ask anyone for a loan in a short period,” he said. “On the contrary, we allocate loans to other countries.”

Sharifov also said the reforms, which Azerbaijan wants to hold, are welcomed by international financial organizations.

“They have stated that they stand ready to help on the matter, as well as financially,” he said. “Here the matter rests in a broad privatization program, improvement of business environment and state administration, and decreasing bureaucracy.”

He added all this is being done for Azerbaijan to be able to create a new model of development that doesn’t depend on oil.

“Getting a loan worth $4 billion is out of the question,” he said. “It is sowing panic among foreign investors.”

Currently, the IMF, WB, ADB and EBRD delegations are in Baku.

[ferries5] 28/1/2016 18:25

Under the PSA, Anglo Asian is not subject to currency exchange restrictions and all imports and exports are free of tax or other restriction. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure.

A tax on profits, and no other profit or sales tax, is payable at the rate of 32%. However losses can be carried forward indefinitely. The costs of fixed and movable assets other than buildings are depreciated at a rate of 25% of declining balance. Double taxation relief provisions are include




Not sure if the psa is legally binding, But think it would be.

[muddy_40] 28/1/2016 18:24

The currency tranfer tax is for Azeri nationals as I believe.



Foreigners exempt from paying 20%-fee for money transfers from Azerbaijan

Mandatory fee of 20 percent on remittances from money transactions from Azerbaijan to abroad, which do not exceed $50,000 a year, do not apply to foreign citizens, Samir Sharifov, Minister of Finance said.

"For instance, if a foreigner invests $10 million in Azerbaijan and increases this investment to $15 million within several years, he earn an additional $5 million," Sharifov said, adding that the mentioned $5 million is subjected to all the necessary taxes.

The minister added that however, the foreigners will not be paying any fee for the transfer abroad, just the 10%-revenue tax.

A mandatory fee of 20 percent on remittances for sending money abroad, which exceeds $50,000 during a year, was introduced in Azerbaijan, according to the amendments to the Law on currency regulation adopted by the parliament.

This charge does not apply to transfers abroad in relation to the cost of medical treatment, education, execution of court decisions and law enforcement agencies outside of Azerbaijan.

Currency exported as direct investment for the purchase of securities, real estate and land, as well as for the maintenance of Azerbaijani companies’ foreign missions also will be taxed with a mandatory fee of 20 percent.

This charge does not apply to legal entities, the state share in capital of which exceeds 50 percent.

[mattjos] 28/1/2016 18:17

The govt is simply trying to limit capital flight from the country.It is not going go adversely affect AAZ.If you read all the articles you will see that there are correspondingly +ve new regulations to support and encourage SME's & entrepreneurs.

[philo124] 28/1/2016 17:46

In which country does the company bank? If $ receipts for sales are banked in Azer then ok.I think. Overseas purchases of equipment paid for in $ might attract the tax.
But not sure. Paying divi to overseas investors might be a problem or repaying any loans outstanding where the debt is outside the country.

[jeanesy] 28/1/2016 17:27

What does this mean for AAZ Terropol ?

[wimbled] 28/1/2016 13:34

Sell gold in dollars suggests AAZ are importing dollars into Azer.

[mattjos] 28/1/2016 11:55

What foreign currency do we export? None that I am aware of.

We bring foreign currency into the country in the form of US$ for the Gold, Copper & Silver sold. The govt needs more companies like AAZ and/or, to see the likes of AAZ grow in size

[cyberbub] 28/1/2016 11:41

Presumably that 20% tax won't apply to AAZ?

[terropol] 28/1/2016 11:14

Azerbaijan – The government is holding meetings with the IMF and the World Bank regarding a potential US$4bn emergency loan package.

The nation has been caught off guard by a rapid decline in oil prices.
Azeri government budget is particularly leveraged to oil and gas prices with hydrocarbons accounting for 95% of the nation’s exports and 75% of state revenues.
Discussions are at an early stage and the government may opt to handle the situation without support from the IMF or World Bank, people familiar with the matter said.
The government is reported to hold little debt and has a sovereign wealth fund worth c. US$34.7bn as of Oct/15, equivalent to more than 60% of GDP.
Moody’s estimates budget deficit to come in at 9.2% and 5.5% in 2015 and 2016, respectively.
The central bank has already allowed a series of devaluations of manat last year that saw the currency coming off more than 50% against the US dollar.
While the government imposed capital controls last week including a 20% tax on foreign currency exports.

Both above notes Extracts of share price Angel morning note.

[terropol] 28/1/2016 11:11

Copper - Good copper projects are still good copper projects.

Copper demand and possibly its price, may well come back a lot sooner than most people anticipate.
The world is rapidly changing and so is the demand for more copper a likely outcome of that change.
E.g. Currently there are 25 kilos of copper used in the manufacture of an average car and 75 kilos of copper used in every Electric Vehicle!
Electric vehicles and hybrid EV’s are set to transform the next generation of transportation.
Japan, the largest adopter of hybrid vehicles has seen gasoline and other liquids consumption fall since the late 1990s with demand expected to fall further.
Ever increasing improvements in battery technology and the race by the main stream auto manufacturers to embrace and gear up for this change is likely to drive the demand and take up for increasingly affordable EVs with longer range and access to ubiquitous and more efficient recharging infrastructure.
Lithium-Air (oxide) batteries offer the potential to radically transform the power and range of electric vehicles in the next ten years with recharging times also likely to fall further.
The equation is simple. The more the world becomes electric, the more it will need copper, lithium, carbon, Neodymium and a range of other metals.
With few new discoveries it is worth keeping an eye on the next generation of copper assets like Cascabel at SolGold*, and Los Calatos at Metminco*.

[terropol] 28/1/2016 09:52

Formality Cyberbub.

[cyberbub] 28/1/2016 07:39

Not quite sure what today's RNS means. Sounds slightly dodgy but they say that it is only retaining the same accountancy standards as before (UK GAAP).

[mattjos] 27/1/2016 20:03

Looks a bit like the Fed is starting to admit it's made a Horlicks of things but, not yet ready to reverse course. Stay put until March and hope for something positive to emerge ... Hardly a convincing position just now but, to be expected as they could not possibly reverse course so early in the effort.Early days still in this effort to tighten but, unless the rest of world enjoys some sort of Lazarus effect on growth in the next 6 weeks, the uncertainty just looks likely to increase and pressure remain on Emerging Market economies.Hardly surprising that Gold has responded upwards and will likely remain well bid until March, at least.Overall, the risks of a recession this year seem to be slowly creeping upwards, irrespective of any left-field events.

[jbe81] 27/1/2016 19:52

Nice to see a bit of buying, and gold looks to be moving up nicely.

[on target] 27/1/2016 16:06

Still the same even after that last trade which was a sell.

[on target] 27/1/2016 15:33

No online buy quote at the moment so they don't have much stock to sell down here.

[cyberbub] 27/1/2016 15:21

Seems to be a little bit of nibbling... The share is so illiquid that half a million buys (and no sells) would push us up 20% IMO

[captain_crash_and_burn] 27/1/2016 14:41

Good opp for the very bold to top up, I am no longer so bold though so patiently holding

[brasso3] 27/1/2016 04:35

Gold breaking out at $1120.