Asa Resource Share Discussion Threads

[neo26] 29/8/2016 12:55

well this dog has finally started to move in the right way.

Good luck, hope they can consistently produce every quarter...

[luckymouse] 29/8/2016 10:26

bamboo - a small one at .8 on the conf line for fun - chart was so good couldn't resist - my heavy stuff is in ITs & hedged

[hazl] 28/8/2016 16:33

bamboo have you looked at QP.?

[bamboo2] 28/8/2016 16:31

LM, are you holding?

[moormoney] 28/8/2016 16:27

This is my pick of the pops for next few weeks. 😄

[jacks13] 27/8/2016 12:30

ASA Resource Group PLC today gives notice of its 2016 Annual General Meeting ("AGM") to be held at Prince Frederick House, 35-39 Maddox Street, London, W1S 2PP on 27 September 2016 at 2pm.

[skidaddle] 27/8/2016 09:33

And it gets worse.

"It appears Zimbabwe President Robert Mugabe was banking on a precious metal inflow from Rio to fix his nation's ailing economy as he has ordered the arrest of all 31 Zimbabwean Olympic athletes arrested and detained for daring to return home with no medals."

[taxibabe] 27/8/2016 08:17

£1.00 written all over it. Show me a miner with these kind of prospects in the developed world with less then £2 billion cap? MWA is worth £15.00 million ha ha

[jailbird] 27/8/2016 05:57

Good post Redtrend

[redtrend] 27/8/2016 05:38

Stig - I think ASA could even get close to 2p if Gold nears $1,400 and ASA maintains its guidance on production and AISCs.

What could get it 2-3p+ would be if Nickel also recovers north of $11.5K/ton, although not sure likelihood of this in short-medium term. Positive is Philippines shutdown of mines and market talking about a deficit, however Indonesia is now exporting ferro-nickel after its clampdown of untreated nickel back in 2014, which may offset Philippines shortfall.

3p+ Mugabe going, ushering in more stability and foreign investment to boost growth of Zimbabwe(as long as Grace Mugabe doesn't get in power or there isn't a civil war, but I think these are the least likely outcomes).

Beyond that, restart of the Smelter with tolling arrangements could add 2-3p to share price alone in short space of time. At moment Nickel operations are only breaking even at $10.3k/tn. Restart of smelter would be complete game changer. Even if you assumed there was no reduction in AISC, as reduction in transport costs of unprocessed Nickel is offset by Smelter operations costs, Bindura would suddenly receive full value of Nickel spot price. Even at these depressed Nickel prices it could make USD 5M+ profit per quarter alone (1,555t x $3,200/tn profit based on $10K/tn spot price). Add in some profit from third party PGM concentrates and restart of smelter is the real cash cow eclipsing Freda and Zani-Kodo (unless Gold also explodes which would be great!). That's why I think it's so important for ASA to do everything in its power to restart the smelter - need to lobby Government to ensure PGM miners don't simply export untreated PGMs out of the country to detriment of Zimbabwe or circumvent the deferred export levy, if there's a perfectly good idle smelter that could add value to all Parties and be modified for PGMs.

And of course you have Zani-Kodo. Add another 1-2p depending on how successful any production start-up would be. Any profits from Agriculture and Diamonds on top of this.

Over the course of 2yrs, if you believe in the Gold & Nickel recovery (haven't made my mind up on Nickel yet!), Zimbabwe as a country being better off after Mugabe and if ASA can restart Smelter, I don't think it's crazy to see ASA at 10p. Dividends, re-rates etc. etc. from there...

Of course there are major risks with any investment in a miner, particularly in Zimbabwe, but think the potential rewards are worth the risk at the moment. Everyone has different risk thresholds of course.

[wstirrup] 27/8/2016 02:17

It doesn't get any better... Does it?



W.

[mreasygoing] 26/8/2016 17:07

Worst violence in nearly 20 years in Harare today with at an anti-Mugabe rally.

[the stigologist] 26/8/2016 16:38

Interesting move. Chartwise it seems it could easily go to 2p or 3p

What could be catalysts for that sort of move ?

Maybe Mugabe going, but more likely some development of the 3m oz Zani Kodo resource (that could easily produce 25-50k+ oz per annum from some low cost surface operation?)

or maybe an announcement on tolling arrangements for BNC smelter or maybe announcement that it's nearing completion like say almost 75% complete etc ?

[juju44] 26/8/2016 14:55

mm's must be short of stock

[mreasygoing] 26/8/2016 14:51

The hot weather is obviously making some sell. Mugabe goes and we'll have 40p.

[luckymouse] 26/8/2016 12:25

free stock charts from uk.advfn.com

[mreasygoing] 26/8/2016 11:34

Technical breakout on the chart. The weekly chart is looking very very tasty.

[casabella2] 26/8/2016 11:27

This just gets better and better .Not sure what is causing the upturn though .Any ideas.Lots of legs left here.

[redtrend] 26/8/2016 11:11

As soon as he's out, the IMF, EU, World Bank etc. will also be willing to provide funds to try and ensure some stability in the country. They can link the past defaults to Mugabe and the old regime to allow them to release funds and everyone can save face. It will of course come with conditions both politically and financially, that should be beneficial to the business environment in Zimbabwe, to promote sustainable growth.

[hazl] 26/8/2016 10:34

A dictatorship is always bad news.

[moormoney] 26/8/2016 10:26

According to the press yesterday Mugabe has cancelled a trip to Ghana and can only "work" for half an hour a day. There are peaceful protests on the increase and government employees have not been paid as the money has run out.
It seems as if changes are very close and the suffering of the people of Zimbabwe just may start to ease.