Anglo Asian Mining Share Discussion Threads

[bleepy] 14/6/2016 11:15

Under the order, privatization will be carried out by decision of the President of Azerbaijan. In this regard, the Cabinet Ministers is tasked to develop within 2 months a new bill on privatization of state property.


As I said, seen to be done squeaky clean. This bill is looking to privatise state property.

Perhaps take state ownership of aimroc ( as its been in limbo for 4yrs) and then privatise under a new psa contract that is more favourable to private investment.

Azer have gone through major changes and restructuring of their banking sector, again demonstrating above board compliance and willingness to conform on the international stage.

[1madmarky] 14/6/2016 11:09

Bleepy - was just about to post the same link. It doesn't sound like a government going down a nationalist route. Quite the reverse. The purchases must be of the government's stake and the transfer to the new body. Imho

[bleepy] 14/6/2016 11:05

hxxp://abc.az/eng/news/96777.html

Finance Ministry: new privatization not to start in Azerbaijan in 2016

Baku, Fineko/abc.az. This year the Ministry of Finance of Azerbaijan does not expect a significant impact on the State Budget from May’s order of Azerbaijani President Ilham Aliyev on additional measures on improvement of state property privatization.

Finance Minister Samir Sharifov has stated that the privatization of state property on the new rules will start since 2017.

"In 2016 we will complete and fulfill all requirements in compliance with the presidential order to begin applying the new system since next year," Sharifov said.

Under the order, privatization will be carried out by decision of the President of Azerbaijan. In this regard, the Cabinet Ministers is tasked to develop within 2 months a new bill on privatization of state property. The State Committee for Property Affairs should also submit annually within the budget package for next year the list of privatizeable facilities. The privatization plan for 2016 should be submitted during the month.

In connection with the order the validity of all decisions on privatization within the II State Privatization Program, on which privatization transactions have not been concluded, was halted. Given that, a new list of facilities in state ownership should be made for 20 days.

[bleepy] 14/6/2016 10:58

This has to be seen to be done squeaky clean. Aimroc's psa contract was far more favourable than aaz's probaly because his two daughters had such a high stake in the company (Panama leaks).

So a compromise on psa contracts set perhaps half way between aimroc and aaz's terms would leave aaz much rewarded.

[celeritas] 14/6/2016 10:57

Room for PSA improvement, looking very good if aaz can get another 20%

[bleepy] 14/6/2016 10:52

So a renegotiation of our psa contract to more favourable terms, those given to aimroc would certainly be acceptable.

I'm guessing more favourable loan arrangements are also on the agenda.

[mattjos] 14/6/2016 10:38

Azerbaijan is 'backed' by the USA with regards its position with Armenia.
Azerbaijan is seeking to diversify its economy away from the oil sector as best it can and the country has mineral assets in situ but, lacks the expertise to mine them.

The formation of Azergold is similar to many other nations .. if you have a look at Weatherly example.
The market went through all this when the government there formed Epangelo as the vehicle by which mining assets were managed. They still have a Ministry for Mines also.

Its right that the country and its people benefit as a consequence of mining activity in the country. It's also right that the body that governs this sphere of the economy has a framework for its governance, its accountability etc.

As bleepy says, this has been hastened by the panama leaks. Its a good thing and should help attract further investment to the sector after it is understood that decisions such as Chovdar cannot be made like that again.

[ferries5] 14/6/2016 10:35

GYZIL means gold in Azerbajani. AZERGYZIL= Azergold. Though not 100% certain.

It gets confusing, seems to be a lot of different dialects there

[mattjos] 14/6/2016 10:20

The current AAZ PSA is between two parties:

The state company AZERGYZIL & R.V. Investment Group Services, LLC.

If AZERGOLD is to become the govt. body responsible for this area of the economy then, contracts will need amending accordingly.

[bleepy] 14/6/2016 10:14

The state umbrella is being used to take ownership of Aimroc.

Azer govn cleaning up its act since Panama leaks.

[lw425] 14/6/2016 10:12

reading between the lines of those links you posted suggests to me a 'nationalistic' approach to assets?

all this appears to be a relatively new development?

far too risky a play on that basis for me

the market appear to be reacting to this new news & the selling has started.

[ferries5] 14/6/2016 10:08

"In parallel, we’ve launched negotiations with foreign partners on the 2007 PSA

Think they meant one state company.

[lw425] 14/6/2016 10:00

surely statements like

'said that there would be one gold company in Azerbaijan'

is a little bit worrying maybe?

thinking about oxs here?

anyone got a view?

[ferries5] 14/6/2016 09:13

AzerGold’s head: gold mining PSA partners to transfer assets in coming weeks

Baku, Fineko/abc.az. State-governed AzerGold continues solving its organizational and institutional issues.

Company’s chairman of board Zakir Ibrahimov informs that currently, the process of state registration of joint-stock companies on the single window system is ongoing.

"In parallel, we’ve launched negotiations with foreign partners on the 2007 PSA contract for exploration and development of gold fields in Azerbaijan. After completion of our state registration, we expect to finish the purchase of assets from the PSA foreign investors in the coming weeks," Ibrahimov said.

He added that at the current stage it is too early to talk about the preparation of the work program of the exploration and development contract fields.


Some links here

[ferries5] 14/6/2016 08:07

It is the president that appointed the management of Azergold not the Gov. Also you must speculate who owns the 2 million shares in Azergold. The statement said that there would be one gold company in Azerbaijan and the president would be taking a personal interest (I read that as a financial interest ).

My take is that Azergold now own 51% of Gedabey and the rest of the portfolio.
And the way I see it developing and benefiting Azz is the plant at Gedabey will be used somehow, if economical, to develop other gold developments in Azerbaijan.
There has been some sort of political settlement been done here, it is to much of a coincidence that this newspaper reporter was released, almost to the day that Azergold was incorporated.

Rezi held an important position in the Iranian Gov. Iran has one of the richest mineral deposits in the world. Not to sure if he would be welcome there. But I bet you he knows the landscape. I think holding this share (for me anyway) is a bit of coattail investing on his ability.

[zhockey] 13/6/2016 21:10

Matt I remember the previous CFO doing the PR so not sure about that.

JBravo - lets hope to get some news on expansion this year, either through exploration or a deal of some kind for an existing resource. The future of the company depends on it.

[mattjos] 13/6/2016 19:56

When was the last time we had a news item headed by Reza, as opposed to either the Chairman of the CFO?I doubt, given the company headcount, that Reza is personally overseeing operations at Gedabek.So, it does to me rather beg the question, what exactly is he up to?There has been a very noticeable shift, from mid last year, to Bill fronting the company PR. Now, I think we'd all agree that as good as he has been, corporate PR is not Bill's forte. It seems to have been a deliberate decision to put the numbers man out front ... Maybe to keep reiterating that they are on top of the debt repayment schedule & the costs .. That's fair enough but, they've had CFO's before & they've had debt before.No doubt all will be revealed in the fullness of time but, am sure that all the long term followers/investors in the company will have noticed the change & be similarly wondering what's going on behind the scenes.

[jbravo2] 13/6/2016 19:17

Hmmm. I'm absolutely certain that Reza is working on something. Chovdar? Don't know. That clearly would be the most expensive option as its already got a plant. Is it the right plant for the ore there or was it rush built just to copy ours? Would the govt want too much for it?
Is AzerGold interested in setting up an operations arm to actually do the mining itself?
Might it want to do that with some concessions and contract others out? It certainly won't be able to set up multiple mines at once.
Would it be happy just to organise PSA's on rates similar to ours and proclaim that a win from the 70/30 that existed for AIMROC?
So many questions and little certainty.
I certainly believe we will expand our contract areas somewhere, somehow.

[zhockey] 13/6/2016 18:50

JBravo are you still confident about future expansion? Do you buy i ln to the Chovdar theory that others have speculated?

[jbravo2] 13/6/2016 18:39

Yes 50p really isn't too far away. Its only just over a £55m valuation and with the turnover and debt even as it is now it really wouldn't be ridiculous. Add in a years worth of debt repayment and plant advancement and it'll be a fair valuation. 4 bag from here.

[jeanesy] 13/6/2016 18:15

Nice finish. No shares available so moving up on very little volume. Lets see what tmw brings !

[mattjos] 13/6/2016 17:48

although Gold is still hovering just below recent highs in US$ terms, it has broken past recent highs in GB£. Last time it traded at over £900/oz was September 2013.

[mattjos] 13/6/2016 17:24

catsick .. you sell at 50 if/as/when it comes up. I will be sitting tight beyond that myself but, willing to keep accumulating down here

[jbravo2] 13/6/2016 17:11

Yes they were in scarce supply today. There was a decent size sell on Friday to satisfy demand but the seller didn't re-appear today and it seems as if it might have to move higher to tempt the next round of sellers.