Asa Resource Share Discussion Threads

[redtrend] 26/9/2016 18:06

Stig - nice update on what would be nice to see at AGM to keep this positive momentum going.

Main priority for me is update on the smelter and more on third party agreements. It's a rather nebulous term without details and so now is time for more details

[jailbird] 26/9/2016 14:48

Quarterly updates will not show lower costs across the combined group, higher revenues and increasing cashflow.
A higher commodity enviroment will also add to these figures

[the stigologist] 26/9/2016 14:08

The chart demonstrates potential to gap up from 2p to 4p and 4p to 6p so now is the time to make positive announcements, stock is tightly held and so share price could 'melt up' on very little.

[the stigologist] 26/9/2016 14:06

One would hope Management take notice of the current momentum behind the stock price and throw us some fish at the AGM tomorrow.

What fish could they throw ?

ASA Gold spin out ? IF they list it on Chinese market you could see a 5m oz resource producing 100k oz per annum being valued at $250m+. Maybe some of funds raised on listing could go towards Zani Kodo start up capex ?

Update on Smelter and some confident sounding statement about being able to pay off/buy in Bond sooner than expected

Some commitment to pay a dividend when cashflow allows (CMCL have shown the power of paying a dividend in creating trust, improving rating etc)

[trevorm2] 26/9/2016 13:08

Well done everyone who's making money here, sorry for those who missed out. Peeps are not driving this. Onwards.

[skidaddle] 26/9/2016 12:28

"apfindley - 20 Jul 2016 - 06:35:09 - 572 of 929
These results are dire.
You cannot blame Mpinga as he was already gone before the reported period started.
These results are purely down to current management, and the losses reported are horrendous.
And they had to raise equity, so it gets even worse.

Where are the rampers who LIED and told everyone a few weeks ago that bumper profits were to be announced. Well they pumped the price from around 0.5 to 0.8 so job done, they ran off with their profits, leaving everyone else with expensive stock.
And now the price is going down on these disastrous results."

Price then circa 0.65p.

"apfindley
26 Sep '16 - 12:13 - 927 of 928 0 0
All in costs are still way way too high.
And production fallen off a cliff.

But hey keep pumping metal stocks even if they are overvalued."

Price now circa 2p.

Question
Do you actually make any money?

[riskvsreward] 26/9/2016 12:20

Did I see loser trader mentality? I would advise (free) cut your loss and run.

[apfindley] 26/9/2016 12:13

All in costs are still way way too high.And production fallen off a cliff.But hey keep pumping metal stocks even if they are overvalued.

[casabella2] 26/9/2016 07:56

Nice thought.

[blueball] 26/9/2016 07:39

Expecting 2.3p today.

[the stigologist] 26/9/2016 07:35

On a 3-6x cashflow multiple i would expect share price of 10-20x current i.e. 20-40p


casabella226 Sep '16 - 07:13 - 922 of 923 0 0

Morning.Any ideas what sort of share price that would give.

[jailbird] 26/9/2016 07:15

i can see $12,000-15000/tonne over the next 12 months

[casabella2] 26/9/2016 07:13

Morning.Any ideas what sort of share price that would give.

[the stigologist] 26/9/2016 06:56

This is why the Nickel 'Bull Cycle' call is so important...

If Nickel goes back to it's recent 5 year highs of $10/lb i.e. c. $22,000/tonne

ASA / Bindura producing 8500 tonnes p.a. @ AISC of c.$6,000/tonne will be making EBITDA/cashflow of over $120m p.a

That's a £30m Mkt Cap company producing $120m+ p.a. cashflow (just on Nickel taking no account of the 100k oz p.a. Gold production!)

[jailbird] 24/9/2016 19:50

Thks Skidaddle.

[skidaddle] 24/9/2016 10:08

For the benefit of those who are not aware:

"BNC is Sulphide orebody which is the good stuff so to speak , becoming more scarce. Nickel - Sulphide and Laterite Nickel deposits are generally found in two forms: sulphide or laterite. About 73% of the world's known nickel resources are laterites found mainly in tropical areas such as Indonesia, Cuba, Columbia and New Caledonia. The remaining 27% are sulphide deposits with notable locations in Canada and Russia. Like Australia, Brazil has both sulphide and laterite nickel deposits.

Currently, the majority of today's nickel is produced from sulphide deposits, as it is easier and cheaper to mine and process than lateritic ore. However, known sulphide deposits, which are large in scale and of high nickel grade, are depleting. As a result a higher proportion of future production is expected to come from laterite deposits.

Sulphide

Sulphide type nickel deposits are formed in essentially the same manner as platinum deposits. These sulphide ores are generally found hundreds of metres below surface, and generally require underground mining infrastructure. The Santa Rita sulphide deposit is close to surface and able to be mined via open cut techniques. The main benefit to sulphide ores is that they can be concentrated using a simple physical separation technique called flotation.

Laterite

The process of forming laterite deposits is essentially similar to the formation of gold laterite deposits. Laterites are traditional to the surface, about 15 to 20m deep, and occur where nickel sulphides have been converted to oxide ores. Being closer to the surface, laterites can be mined via open-cut methods. However, there is no simple separation technique for nickel laterites. The rock must be completely molten or dissolved to enable nickel extraction. As a result, laterite projects require large economies of scale at higher capital cost per unit of capacity to be viable. They are also generally much higher cash-cost producers than sulphide operations."

[taxibabe] 24/9/2016 07:06

The assets of MWA/ASA should not be underestimated. Its got a lot of assets which could be developed if money flows into the shares and a rights issue became possible. Results could be transformational - there is no doubt MUGABE going off the scene will be the catalyst for a big re-rate of all ZIM assets and international money will flow in. A few years on who knows what this company will be worth? Could be another BHP in the making here. Everyone should have a few of these tucked away for their pension plan methinks.

[jailbird] 24/9/2016 00:54

Nickel ore ban in sight in Philippines: Analyst


"Anti-mining advocates in Congress are taking advantage of the [Rodrigo] Duterte administration’s harsh stance against the mining industry, and reviving calls for a ban on nickel ore exports," says Verisk Maplecroft’s Philippines Analyst Eufracia Taylor.

In a short editorial mailed this week, Taylor states that proponents of the measure took inspiration from Indonesia’s ore ban and are convinced that a similar decision would prompt investment in domestic processing and develop a more value-added mining industry.

But the analyst says that the Philippines’ case is not comparable to that of Indonesia. In her view, Manila “would struggle to secure investment in processing plants due to the lower quality of the nickel ore, while poor infrastructure and high electricity costs make domestic processing commercially challenging.”

Taylor believes, however, that China may put pressure on Duterte’s government to at least delay the ban, given its reliance on Philippine nickel ore for its stainless steel supply chain. "The tension between Duterte's priorities of refining the mining industry and improving relations with China could therefore give mining companies some room to breathe," she writes.

Nevertheless, miners in the Southeast Asian country remain agitated. On September 21st, results of an industry-wide audit that started in July revealed that more than half of the operating mines in the country could be suspended. According to The Manila Times, most of them are nickel operations in Mindanao.

Specifically, the Department of Environment and Natural Resources recommended 12 mines for licence suspension after it found they had inadequate mining practices and a lack of proper siltation prevention facilities, were carrying out technical violations, and were not complying with planned social development efforts.

Previous to this recent development, 10 mines had been already penalized for environmental violations. Eight of those mines are nickel producers. Many of them, however, should get their licences back once requirements are met, Verisk Maplecroft’s analyst says.

Duterte, who was sworn in as the Philippines president at the end of June, has tightened social and environmental standards for mining companies operating in the country. He calls for “responsible mining,” while his detractors see his stances as populist rhetoric.

This situation combined with Indonesia’s ban has seen a decline on global stockpiles, which resulted in nickel prices rising by 17% this year on the London Metal Exchange. And they could continue to climb in 2018, commodities trader and miner Glencore Plc. told Bloomberg, without giving any specific forecast.

[neo26] 23/9/2016 22:17

this is no longer a dog, should have held mine, would have been in decent profit.

Well done, peeps.

[the stigologist] 23/9/2016 17:28

You reckon mate ? They've basically come out saying they believe we're in a Nickel Bull Cycle. That means a multi-year period of higher nickel prices. It's transformational and substantive news alright. We should now see major continued move higher. Today is just the start.

[mreasygoing] 23/9/2016 17:14

Highest volume in a couple of months. Substance behind the rally today.

[the stigologist] 23/9/2016 16:10

Reminder 1x Sales here is around 6p per share
IF you are earning a 10% profit margin generally you should expect on a 10x PER to trade at circa 1x Sales.

If ASA is Selling Gold at $1300 and costs are $1150 that's a 10% margin
IF ASA is Selling Nickel at $6500 and costs are $5000 that's a 30% margin (ish)

[moonwizz] 23/9/2016 16:08

Nice to see 2p on the ask