Avesoro Resources Share Discussion Threads

[jimcar] 12/8/2017 15:56

AISC is based on ounces sold, i.e. 15,382 ounces. If they hit their tatget of 30k ounces prduced and, hopefully, sold next qtr then AISC should come down very sharply.

[pottermagic2310] 11/8/2017 17:34

Yes.... agreed... the AISC is very worrying... but everything else looks positive and nobody has a Time Machine to be able to go back an change things, so what lies ahead is all we can concern ourselves with.

[ukgeorge] 11/8/2017 12:13

The results were pretty terrible AISC $1,600/oz and don't have much cash

one postive was that they processed lower grade ore than they processed last quarter so costs might come down next quarter but from what i read they were pretty dire.

[pottermagic2310] 11/8/2017 11:25

I think this looks really quite positive and am feeling very tempted to buy some more at this current (relative) low

[stevie blunder] 21/7/2017 20:11

With only 30koz produced so far they are still projecting 90 - 100k for the year. That implies pretty high production rise in the second half. In fact it means they expect to be on a run rate of 30koz/quarter by year end.
So a target of 120k next year shouldn't be out of the question.

I've added gold price to the header.

[roguetreader] 04/7/2017 09:35

The Morningstar article re the link is from 2014

[shavian] 04/7/2017 07:57

Why isn't RG's increased holding showing up in the volume counter? It has been as flat as a pancake for weeks. Having poured shedfuls of cash down AUE's throat in the past I'm disinclined to join him just yet.

[the bull] 28/6/2017 13:52

www.morningstar.co.uk/uk/news/AN_1419843352923521400/private-investor-richard-griffiths-ups-stake-in-aureus-mining-to-13.aspx


I am guessing that after being diluted heavily, he has increased his stake in the new entity. Quite a decent stake

[pottermagic2310] 15/6/2017 13:48

A series of Mines may produced 500k of Gold.... not just the operational Mine we've all been invested in all this time.

This is actually fairly good news in terms of Business operations, stability, continuing Business development and long-term growth.

[jimcar] 15/6/2017 08:51

The 500k is for the total production from new liberty, Youga and Balogo mines and the aquisition

"Avesoro is in talks to acquire two of MNG’s three gold mines, being Youga and Balogo in Burkina Faso. It also hopes to buy another ‘build-ready’ gold project in the next year or so.

MNG already had plans to have a listed gold business, so using Avesoro as the quoted vehicle makes more sense given it is already on the stock market.

Youga and Balogo are expected to produce between 100,000 and 110,000 ounces of gold this year. In contrast, New Liberty is forecast to produce 90,000 to 100,000 ounces in the same period.
"

[robrah] 15/6/2017 08:06

500000 oz of gold a yet . That can't be right ?? Back in aue day this is expected to do 100k oz of gold at peak production .At 500000 oz this can't still be at 2p .Something is wrong

[dell1234] 08/6/2017 12:07

BTW: The above article is from Shares magazine

[mirabeau] 08/6/2017 08:26

Gold miner is fixed and ready to roar

Avesoro Resources is starting to look really interesting after sorting out problems

08 June 2017

Issue: 08 Jun 2017 - Page 13

Gold miner Avesoro Resources (ASO:AIM) appears to have fixed its operational and financial pressures and now has an ambition to run a series of mines producing a combined 500,000 ounces of gold a year.

Buy the shares before the broader market cottons on to the rebirth of the business and its growth potential.

Remember Aureus mining?

You may be more familiar with the stock under its previous name of Aureus Mining. The company enjoyed success with gold exploration and attracted widespread investor interest as it developed the New Liberty mine in Liberia.

Unfortunately the company encountered financial and operational problems as it moved into the production phase. Setbacks ultimately damaged the share price.

Turkish group MNG Gold pounced on the opportunity to invest at a low level and bailed out Aureus with a $30m investment in exchange for 55% of the company. A further $60m investment took MNG’s position to 76.6%.

This financial injection helped the small cap to end an unfavourable agreement with a mining contractor, pay down a number of creditors and buy equipment.

Significant equity dilution was the price long-standing shareholders had to pay to keep the business afloat.

The company now has a heavyweight backer and chairman in the form of Mehmet Gunal, the founder of MNG Gold (now called Avesoro Holdings) and owner of Turkish infrastructure conglomerate MNG Group.

The first of several deals?

Avesoro is in talks to acquire two of MNG’s three gold mines, being Youga and Balogo in Burkina Faso. It also hopes to buy another ‘build-ready’ gold project in the next year or so.

MNG already had plans to have a listed gold business, so using Avesoro as the quoted vehicle makes more sense given it is already on the stock market.

Youga and Balogo are expected to produce between 100,000 and 110,000 ounces of gold this year. In contrast, New Liberty is forecast to produce 90,000 to 100,000 ounces in the same period.

Share price catalysts

Second quarter results in August may not be outstanding as the company is still making improvements to New Liberty. We’re told the third quarter results should show healthier cash flow.

Investors may have to be patient as the broader market may want to see a few more quarters of solid production before turning positive on the stock.

Avesoro is confident it can reduce operating costs below the original plan for New Liberty. A revised life of mine plan in late 2017 will enable analysts to update their financial models and hopefully put a much higher valuation on the business. (DC)


Avesoro Resources (ASO:AIM) 2.7p



Stop loss: 1.5p

Market value: £143.8m

[beeezzz] 06/6/2017 17:16

4m trade end of day, buy or sell...hmmm

[pottermagic2310] 05/6/2017 11:16

Good spot for a blundering blind man !!

[stevie blunder] 03/6/2017 10:32

I had missed this interview with the CFO from 11 May



Worth a listen, he talks as if he is also speaking on behalf of Avesoro Holdings the vehicle which holds the Avesoro Resources shares for the Turkish owners.

"considering ...options for consolidating further assets. Avesoro Holdings have mining assets that are outside of the public company at the moment and looking at possible options for adding some of that into the public company and more broadly looking at M&A options.... build ready targets where we can build our construction capability to bear.......... Currently across Avesoro Holdings production will be 250K oz and we are looking to grow that within the public company to around 500k oz within a couple of years......."

It occurs to me that they might be talking to Hummingbird who have the Dugbe deposit in Liberia with a 4.2Moz resource and which is more or less build ready.

[beeezzz] 02/6/2017 16:44

Gold up ASO stagnant, too many shares out there now...need a massive re-rating to see any significant rise in share price .

[pottermagic2310] 15/5/2017 11:13

Exactly the sort of things I was thinking... I like the ambition to make this something more than it is, as good as things are already getting and likewise wondered "How? What will the impact be?".

Am actually much happier to hear this sort of positive, constructive News than the sort of thing we used to get under the previous Leadership/majority Owners.

[stevie blunder] 15/5/2017 09:10

These guys dont hang about, targeting 500k oz production 2018/19. Sheesh!
Looks to me as if Avesoro will have to issue a big pile of shares to make the aquisitions.

One worry is that they will take the company private. The other possibility would be if they can get institutional support they could issue new shares for cash and reduce the Turkish percentage holding, turning the company into a more normal listed entity.

Very ambitious however they fund it, and I think very encouraging.

[stevie blunder] 11/5/2017 12:39

No new problems at least, and they are slowly getting the mine running smoothly and catching up on the stripping.

There is a summary of exploration activities in the MDA I linked to. Encouraging that they have 4 target satellite deposits within trucking distance of NL ie 5km. And they will be drilling later in the year on several other targets.

I obviously wish I had bailed at over 20p........

Never mind that is history, we still have control of a gold field and just maybe some competent management in charge

[pottermagic2310] 11/5/2017 11:22

Do we like this ?
Looks very positive to me... so glad I didn't bail at some rather stressful times this past year or so.

There's Gold in them there hills !!!
;-)

[stevie blunder] 11/5/2017 09:08

And here is the link to the full Management Discussion and Analysis of Q1 2017



They say they are on track with previously announced plans. If cash costs are going to average 750 - 800 per oz in the year then they will need some really nice numbers in the second half. :-)

[pottermagic2310] 20/4/2017 20:31

JIMCAR...you've missed the point entirely... those over ambitious, aspirational targets were presented by the Business that failed, the Business people that failed, prior to the takeover and revisiting of both Operations and the Business Plan.
I'd agree, those failed Business people did set themselves relatively easy targets... they were never achievable BUT very, very easy to set !!!

Everything has moved on, it's a new Business, under new Ownership, with upgraded, viable Operations and more realistic targets that genuinely are achievable. Forget the failed dreams of the past, focus on the achievable reality of the here and now.

[arf dysg] 20/4/2017 12:08

Reading & co. spent lots of money on further exploration fun and games instead of getting the original mine working. Then, when problems appeared with the mine, there wasn't any money to address the problems, the share price flew like a brick, there were massive dilutive fund raisings and there was more debt.

When I say that the share price flew like a brick, I mean it flew like a 24-carat, solid-gold brick.