QE to Infinitee 1
08 Feb 2016
Floatation plant has been a great success.The significant impact on costs will continue through 2016.It only cost them $4;7m and is expected to deliver 1,000wmt of copper per month,plus probably 1,000oz of gold PA (with a value of over $1m on its own.)It was built with a view to expanding,which will probably be a given due to the high revenue it delivers in relation to the cost of building and operating.They also seem to be optimistic about recovering some zinc via a cell in the flotation plant.QE.
QE to Infinitee 1
08 Feb 2016
$1192 for an oz of gold.
QE to Infinitee 1
05 Feb 2016
$1174 for an oz of gold.Peace.QE.
QE to Infinitee 1
04 Feb 2016
Re: Too cheap to ignore February has historically been the coldest month.If they have a bad winter,it can impact on the HL.The HL is outdoors and can grind to a halt when its sub zero.They even buy in bulk anti-freeze. Cold winters have been a more regular event in recent years,possibly due to global warming/changing weather patterns. Anyway,I see the HL now only produces about 5kozs per q and the AL plant is indoors. Possibly overstated my concerns about February. Volume is up,as is the pog.Peace.
UkBBinvestor
04 Feb 2016
Re: Too cheap to ignore I agree with your view.Any more details on why February is often problematic?
QE to Infinitee 1
03 Feb 2016
Too cheap to ignore Might surprise a few folks on here,given my historic negative view of this company.But now its gotta be a buy.Gold could go either way but its a surprisingly fairly healthy $1140 at present.The manat could get stronger if or when oil bouces back,but its low at this time.Low oil and diesel costs also impact favourably for AAZ.Lower cyanide usage lowers costs.Not getting carried away but like what is going on at Gosha,the plans for the increase in the plentiful copper and they must have got to grips with the AL plant by now.Large seller has to run out of shares at some point.Not much downside although the month of February often prove problematic.QE.
catsick
15 Jan 2016
gadir ... The new underground mine at gadir is producing some fantastic material , 30k tonnes at 8g / ton over the last quarter represents about 40% of production which is very impressive, this is going to keep the costs well down Everything else is moving in the right direction , the wages for the 750 staff in free falling manat together with much cheaper oil which will be the mines second biggest cost are going to tee things up nicely for the coming year , also looks like no real effect in the final quarter from the floatation plant which is just coming on stream, using tailings so basically garbage as a feedstock is going to mean that plant will have a super high margin for some time to come , I am expecting the mine to produce 25 mio usd of cashflow in 2016 at a minimum which is crazy for a 7 mio usd market cap Looking through the 2014 accounts we can see that they have spent 180 million dollars on all the plant they have finally got running smoothly , take of the 48m of net debt and the market cap is just insane .....
catsick
14 Jan 2016
nice update Nice update , so this year they built a new plant, expanded a new underground mine and paid down debt at the same time , next year with none of this capex but with the benefit of the investment coming on stream they should generate a boatload of cash .. Now if only they could allocate 20% of this cashflow to paying some dividends , that would probably put the shares on a 33% yield at current prices , which would probably cause a rerate in the shares to 20p and everyone would be a winner !! , lets pay off reza by july and then pay a token amount to the shareholders !!!!!!!!!
Brasso3
23 Dec 2015
Re: Operational Costs When the Manat was devalued in March 2015 from 0.75 to 1.05 verses the US dollar AAZ said that would result in a $6.5m reduction in operating costs for 2015. Gold production for Q1 was 17,200oz and the target for the full year was 70,000oz. To reach that annual target AAZ needed to produce 52,800 oz in Q2 to Q4. That $6.5m saving translates to $123 per ounce.The recent devaluation of the Manat from 1.05 to 1.55 should result in an even bigger saving per ounce. I estimate it is around a $150 - $175 reduction.
Brasso3
23 Dec 2015
Re: Presentation ApologiesIt was at the Proactive presentation where the CFO states full year costs will be below $700 per ounce. See 16:45 in the video:-[link]
QE to Infinitee 1
22 Dec 2015
Re: Operational Costs Brass3, think you should post a correction.The CFO did not state costs would be "below $700" he said they were $740 for H1 and would be"lower for the FY." Under the Psa 12.5% of gold produced goes straight to the Azaries. If 70K produced AAZ are left with 62K. Even if the profit was $21m the Azaries still take another 32% leaving $14m. Guess the HQ is still costing at least $5m per year. QE.
QE to Infinitee 1
22 Dec 2015
Re: Operational Costs "Don't forget the copper and silver on top!"The copper and silver sales are used in offsetting the costs for gold production.Manat devaluation impact was announced by the company early this year.Do not forget the PSA and after that the 32% tax on profits.Other costs to be considered.Plus they have debt coming out of there ears.Winter is fast approaching.QE.
Brasso3
22 Dec 2015
Operational Costs We know that 2015 H1 costs were $736 per ounce. The CFO has told us that full year 2015 costs will be below $700. With the Manat devaluation we should also expect a further significant reduction in costs going forward into 2016. Where do we sit in these figures post the Manat devaluation for 2016?70,000oz x ($1000 - $700) = $21m70,000oz x ($1000 - $650) = $24.5m70,000oz x ($1000 - $600) = $28m70,000oz x ($1000 - $550) = $31.5m70,000oz x ($1000 - $500) = $35mI think 70,000oz gold production for 2016 is conservative.An average $1000 an ounce for gold is possible but unlikely.Don't forget the copper and silver on top!
Brasso3
22 Dec 2015
Presentation Worth a watch for anyone that missed it a few weeks back:-[link]
catsick
22 Dec 2015
COSTS would be interesting to have a breakdown of how much of the costs are manat based and how much are usd, I would have thought 50/50 but have no real idea, I would guess over time wages will have to rise to remove part of the deval effect, but I guess to some extent with collapsing oil prices the country has a case of reverse dutch disease ! On a side issue it is looking like the cashflow generated by the mine in 2016 is going to be multiples of the market cap, at least a token share buyback has to make a ton of sense, just buying back shares with 20% of the savings from the deval alone will be a massive percentage of the free float and should propel the price a multiple higher, 1 mio usd can buy 13.5 million shares which is 3 months of average volume, as a buyback that would be an enormous volume to squeeze out of the market ....
