Anglo Asian Mining Share Discussion Threads

[jbravo2] 24/5/2016 13:44

Mattjos, AIMROC have a PSA which requires a lower proportion of their workforce to be indigenous than ours. (Still the majority of course). One would presume that if the AIMROC properties were to open again whoever was operating them would be able to employ many of the people previously working on them. One would assume that Azerbaijan hasn't been creating too many jobs recently with the price of oil.

Regardless, as you say, do you trust these properties to a company with a proven ability to make these mines work or do you hand them to someone else with more unknowns?

[mattjos] 24/5/2016 13:11

Something will emerge from the fog soon enough & we look to be in poll position.

If you read the PSA you will see what proportion of the workforce have to be local. Who else in the country & in the locality, has the indigenous workforce with the training & experience ?

[jbravo2] 24/5/2016 12:29

They won't have been idle on the exploration front whilst they were producing. As I've mentioned before you can find details of all kinds of people who've worked for AIMROC doing all sorts of work. Naturally these include geologists.

It's something AIMROC presumably won't have been keen to talk about whilst they were producing but now they seem be searching for a buyer one would assume they will be keen to emphasise the positives of what they hold. The fact the government manage to pick up on this and talk about it shouldn't be a surprise.

[zhockey] 24/5/2016 11:48

Why is that Jbravo if they have been idle?

[jbravo2] 24/5/2016 10:18

Yes. As has been mentioned before, there is a lot of chatter about the mining sector in Azerbaijan at the moment. Interesting times. :)

It would be interesting to see a breakdown of where exactly the new reserves have been identified and their size. It would seem a reasonable guess that most of the recent increase would have come from AIMROC properties.

[slavy] 24/5/2016 08:14

Azerbaijan’s gold reserves double

[brasso3] 24/5/2016 07:49

Then AAZ will only be making $500 - $600 profit per ounce.

[jeanesy] 24/5/2016 07:28

POG continues its downward trend .Maybe we will re-trace to 1200 !

[jesus405] 23/5/2016 12:52

Well done aps55555. That does mean it is going to be difficult to track this month by month. There will be larger quartely jumps than prior due to the monthly information having a little less significance. As things stand though those jumps should be moving in the right direction.

[zhockey] 21/5/2016 12:50

Jeanesy,

I would be prepared for gold to retrace to 1200, maybe a bit below.

[jeanesy] 21/5/2016 11:05

Lets hope then that the figures in a few days time make for good reading. This share is for me by the way otherwise i wouldn't still be here. I , unlike some, haven't sold a bean. I am optimistic about the future here, im just a tad worried about the POG. True if i had been at home and not at work that i might have sold some when it reached 13.5p but i would have buying more at this price. Gold has had a bit of a battering. I just hope that 1250 is the low point . Every dollar counts when we have debt to pay off !!

[wrighty46] 21/5/2016 10:38

Well done guys, research here is excellent. I thought I was done buying here. But if we get any more of a retrace which I doubt might just be tempted. GLA

[jbravo2] 21/5/2016 09:32

Yes, the copper concentrate is picked up weekly. From memory it's bought at the gate and picked up by Industrial Minerals SA. It's then taken to Georgia.
You can see it in the latest presentation. It's the picture of the white bags somewhere in the first few slides again from memory.

[mattjos] 21/5/2016 09:20

Well done guys .... Do we know, approximately, how frequently the concentrate from flotation is shipped out for refining and then the lead time before the company gets the money (minus net refining costs) ?They look well on track to hit annual target production, now we understand the lag in total of each monthly locally reported production.The market will be playing catch up here right up until the H1 figures are officially reported.

[2sporrans] 21/5/2016 08:20

Thanks for explanation JB.
Revised my original post in any case fwliw.
If Unibank simply split out the Precious metal extraction figure into its gold and silver components would be ever so helpful and save old TS from making bleary eyed conflations too early on Sat. morning.

[jbravo2] 21/5/2016 08:09

Alas no sporrans. The stock is simply a measure of the stuff left in the strongroom. It goes up and down according to when the figures are given in relation to the delivery schedule. The increase is simply due to some of Aprils production not having been delivered for refining yet, more than happened in March with that months production.
It's just a timing thing.

[2sporrans] 21/5/2016 07:27

Isn't the imputed April total of Gold [dore] production [180kg=5787oz] PLUS increase in stock reserve [34.6kg=1113oz] near as d@mn 214.6kg=6900oz?
That's very encouraging and justifies the Header comment in the Unibank source article: "Azerbaijan increases precious metals extraction first time for a long time".

Tricky trying to reconcile the April extraction figures [Gold+Silver 208.2kg] with the production + stock increase ones [gold alone 214.6kg]; I've assumed this is explained by some of the dore production being sourced from stock built up prior to April.

Re-think: so if ~800oz of production is sourced from existing stock, ~6100oz of EXTRACTION for April looks right.

Whatever, if the Gold [+silver] production has picked up this much, will be enhanced considerably by the burgeoning copper output.
Should impact positively on the share price methinks; the stock reserve and copper stats. won't be fully factored into many [potential] investors calculations.

[brasso3] 21/5/2016 06:32

Agree 6000 - 6100oz in April if we include flotation plant production. Seems like they are back on track after the winter. Maybe 6500oz per month will become regular over the summer. At $1200 - $1300 gold that mean AAZ will be generating serious cash flow.

[jbravo2] 20/5/2016 23:31

Well done aps and well found ferries.
As postulated, they will continue to only report dore figures and nor will they go back after the quarters and look up the company RNS's to take account of the gold in flotation etc. So the numbers reported in this fashion are going to be a fair bit out from now on.
One would also assume the silver number to be well short of course.

We can assume over 6,000oz total for Apr then. Nice result.

[ferries5] 20/5/2016 20:35

Baku, Fineko/abc.az. Azerbaijan, which started industrial production of gold in July 2009 and publication of accompanying silver production in 2010, decreased production of gold by 14.4% for 2016, while production of silver increased by 5.1-fold.

The State Statistics Committee (SSC) informs that for Jan-Apr 2016 the country extracted 727.2 kg of precious metals (including 208.2 kg in April), that was by 0.6% less than a year before.

Stock reserves of precious metals as of 1 May 2016 totaled 76.2 kg (+35 kg in April).

Over Jan-Apr 2016 production totaled 597.1 kg of gold (180 kg in April) and 130.1 kg of silver (27.4 kg). At that, by 1 May 2016 stock reserves of gold totaled 63.2 kg (+34.6 kg in April) and 13 kg of silver (+0.4 kg).

In 2015 the country extracted 2,367.2 kg of precious metals, including 2,229.3 kg of gold and 137.9 kg of silver.

In 2014 production totaled 2,111.8 kg of precious metals, including 1,872.5 kg of gold and 239.3 kg of silver.

In 2013 the country extracted 2.249 kg of precious metals, including 1,619 kg of gold and 630 kg of silver. In 2012 the country was produced 2,188 kg of precious metals, including 1,562 kg of gold and 625 kg of silver.

In 2011 country’s extraction of precious metals amounted to 2,992 kg, including 1,775 kg of gold and 1,217 kg of silver. In 2010, extraction reached 1,900 kg of gold and 1,500 kg of silver. From July 2009 to 1 January 2010 the country extracted 333 kg and with taking into account the production in 2010-16, the overall gold extraction reached 11,558.42 kg and silver extraction at least 4,372.7 kg.

The Environment & Natural Resources Ministry estimates that the country is able to produce about 10-15 tons of gold per annum.


180 kilograms= 5,787.1343823529 troy oz Well done aps55555

[jbravo2] 20/5/2016 10:34

@catsick: it certainly could look like that couldn't it? No money therefore must be cashflow negative? But imagine if there were several hundred kilos of dore, say even 300kg, produced by Chovdar sitting in vaults, unable to be processed as ultimate ownership of the company was problematic to demonstrate and therefore many refiners were becoming unwilling to take it. Would that cash flow have made a difference? (Please cross reference recent stories of gold dore found being smuggled out of Azerbaijan. It didn't fall off a tree and I hope it didn't come from AAZ!)
I have heard that AIMROC had c$180m of debt at last count. (Other sources have suggested upto c$250m) Most of that I would have thought would have been supplied by banks such as Pasha bank. As mattjos said, start to think about who owns these banks.
However you are right this debt simply isn't going to disappear. Something will be wanted but ultimately AAZ aren't going to give away the hard won position of increasing financial strength they now find themselves in. They won't load themselves with that much debt. So perhaps a deal can be done or perhaps Reza would prefer one or more of the other properties? Garadagh? Dagkesaman? Kehnemadan? Goydag? Kurekchay?

[jesus405] 20/5/2016 10:27

Cheers Jbravo, I suppose it will be clear as we move along as if they are not declaring all the gold in the monthly state reports, then we would expect substantially inflated months on 3,6,9,12.

[celeritas] 20/5/2016 10:09

hgm steady away again.
With gold over 1200 it should also be steady away here, it just needs to get over it's bashirov hangover but I guess that won't happen until the price is back in the 20s and people perceive everything must be great even though it's no different to now.

[mattjos] 20/5/2016 09:57

ok, thanks Cel .. did not know. Taken that post down now.

catsick .. I think you should look to see exactly who the lenders are to current Chovdar owners

[celeritas] 20/5/2016 09:55

Mattjos, blacks cant vote down.

catsick, depends on what deal could be done.