Good Morning,
Anglo Asian Mining (AAZ) have waved the flag stating "financing
is becoming limited for Gedabek." The CEO has stumped up a $4M
loan, amazingly unsecured. So it either means one of two things, AAZ are likely
to be in a position to repay the loan by the 8 January 2016 (the term) or
there's a placing on the way.
One would be wise to err on the side of caution! Those
muppets giving abuse for shorting AAZ last year need a reality check, EMC: AAZ 28 May 2014. It was noted in April (EMC)
within AAZ's Q1 2015 Operations Update that the costs guidance was totally
absent. Today's raises further woes, with net debt of US$52.4 million as of 31
December 2014, things are not looking pretty.
With a quick breakdown of the figures available (as guidance
is unavailable), all in costs are likely to be around $945/oz, although this
has a significant margin for error, circa 10% this excludes debt/interest
repayments. Has AAZ had another hiccup? Its rather looking like $10M is needed
sooner rather than later, with the loan keeping the wolf from the door in the
interim. One simply cannot factor in too much benefit for the reduction
in energy costs (fuel) and heap leaching agents, without more information
from AAZ.
Some gossip on PayPoint Plc (PAY) doing the rounds.
More later pending commitments.
Atb Fraser
Fraser- Not more muppets today- what about stale bulls or Canutes for variety?? :-)) Re AAZ- the chart looks horrible and seems to indicate a trip to minus territory, but Im not a chartist and so Hugo may need to see if a minus figure is acceptable.... the mkt cap is now £6m so swamped by debt of US$50m plus and they have a director who seems to buy and sell at precisely the wrong times too.. I often think of songs that go with shares and my song for AAZ is from the brilliant Talking Heads-- The Road To Nowhere... and classic video too for the Bank Holiday weekend.
ReplyDeletehttps://www.youtube.com/watch?v=AWtCittJyr0
Cheers. The Leggie
Fraser- Just noted that Amur Minerals (AMC) have got their final (??!!) approval for their Kun-Manie nickel mine. They have had so many hurdles to cross, so a massive day for them. I have never been brave enough to invest in AMC, but given their plans for airships to reach their v remote deposit and (perhaps teleportation and hoverboards....) I wish them all the best with funding with the sanctions being a major further hurdle. The deposit should help as its substantial but they need to be v innovative given the remote location and weather issues. Zeppelins here we go....
ReplyDeleteCheers. The Leggie
Morning Leggie,
ReplyDeleteTook some AMC for a few 'quick' buckets this morning. The project needs $$$ and will certain have to be creative with a feasibility study. The asset is something a major would be better suited to progress. With the permits and the project being in the "top" 15 or so of mines in the next decade, its got potential.
The valuation will be tricky, with Nickel fundamentals being the only commodity where pinning the tale on a donkey would have greater accuracy. The lack of transparency in the market is not aiding the price either. With brief periods of reducing supply, only to find a huge great dump in Asia eroding any supply. The credits will certain improve the fundamentals of the project, the concern being are the AMC management capable of progressing it?
Fundraiser please…
Cheers F
Thanks Fraser- Robin Young has been talking today via a video.
Deletehttp://www.proactiveinvestors.co.uk/companies/stocktube/3797/exclusive-amur-minerals-ceo-on-production-licence-award-and-finding-a-suitable-partner-3797.html
He talks a good talk re JV partners so lets see if he has the blank sheet of paper he thinks he has.
Cheers. The Leggie
Your comments about plus at £5/6s saved the ftml readers a lot of tears. Maybe the instis should be reading here & you on ML or to the rotr you go. V.v.v.insightful. Richard R
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