The Anglo Asian Mining share price has taken a hit in recent months, but the company’s long-term prospects remain strong.
Anglo Asian Mining is a UK-based mining company with operations in Azerbaijan and Uzbekistan. The company’s share price has come under pressure in recent months due to falling commodity prices and concerns about the Azerbaijani government’s commitment to reform.
However, Anglo Asian Mining’s management team remains confident in the company’s long-term prospects and is committed to delivering value for shareholders.
The current weakness in the Anglo Asian Mining share price presents an attractive opportunity for long-term investors. The company is well positioned to benefit from continued economic growth in Azerbaijan and Uzbekistan, and from any rebound in commodity prices.
With a strong balance sheet and experienced management team, Anglo Asian Mining is well placed to weather the current challenges and deliver shareholder value over the long term.
Anglo Asian Mining is a gold, copper and silver producer in central Asia with a broad portfolio of production and exploration assets in Azerbaijan, Georgia and Kazakhstan.
The company has been working hard to increase its production levels, and this was reflected in its share price performance over the past year. However, Anglo Asian Mining’s share price fell sharply in early February after the company announced that it had sold its Gedabek gold mine in Azerbaijan for $100 million.
This news came as a surprise to investors, who were expecting the company to use the proceeds from the sale to reduce debt. Instead, Anglo Asian said that it would use the money to fund “exploration activities” and “general corporate purposes”.
While some investors may be concerned about the company’s decision to sell one of its key assets, others will see it as a positive move that will allow Anglo Asian to focus on its other operations.
With shares trading at around 61p at the time of writing, Anglo Asian Mining could be an interesting opportunity for long-term investors.
Anglo Asian Mining Share Chat
Anglo Asian Mining plc is a gold, copper and silver producer in Central Asia with a broad portfolio of assets in Azerbaijan. The Company has a leading position in the Azerbaijani gold sector and holds the largest combined gold and copper reserves of any company listed on London’s AIM market. In addition to its interests in Azerbaijan, Anglo Asian also has projects at various stages of development in Turkey.
The Group’s main operating mine is Gedabek, which is located about 170 kilometres west of the capital city Baku. Gedabek commenced operations as an open pit mine in May 2009 but since 2016 has been mined underground. Gold production from Gedabek was 36,065 ounces for 2017 compared to 39,174 ounces for 2016 – a decrease of 8%.
Copper production was 11,376 tonnes for 2017 compared to 10,717 tonnes for 2016 – an increase of 6%. Silver production was 261,370 ounces for 2017 compared to 242,890 ounces for 2016 – an increase of 7%.
Credit: www.angloasianmining.com
What is the Anglo Asian Mining Share Price
Anglo Asian Mining is a gold, copper and silver producer in Central Asia with a broad portfolio of assets in Azerbaijan. The Company has a 1moz AuEq Measured and Indicated resource base including JORC Compliant resources of 873,000oz of gold. Anglo Asian Mining is listed on the London Stock Exchange AIM market (ticker – AAZ) and had a market capitalisation at 23 December 2019 of approximately £100 million.
The Company’s flagship Gedabek mine commenced operations in August 2009 and is currently operating at an average annualised production rate of 17,600oz AuEq. Gedabek is an open-pit mine with heap leach and ADR facilities and produces both doré bars on site and also high grade concentrate which is sold to smelters in China.
At Angovar, construction work continues on the new flotation plant which will enable the recovery of both copper and molybdenum from Angovar ore.
First production from the new plant is scheduled for H2 2020. Mined ore will continue to be processed through existing heap leach operations until such time as the new flotation plant becomes operational.
How Has the Anglo Asian Mining Share Price Performed Over Time
Anglo Asian Mining plc is a copper, gold and silver producer in Central Asia with a broad portfolio of production, development and exploration assets. The Company has a strong track record in delivering growth and is now capitalising on its production platform to deliver further shareholder returns.
The Anglo Asian Mining share price has performed strongly over the past few years, thanks to the company’s strong operating performance and growing dividend payments.
Since 2014, the share price has more than quadrupled from around 9p to its current level of over 40p. This impressive run has been driven by a combination of factors including:
– Strong operating performance: Anglo Asian has consistently delivered strong operating results, with revenue and profit growth each year since 2014.
This has been driven by rising production at the company’s flagship Gedabek mine in Azerbaijan as well as solid cost control.
– Growing dividend payments: Anglo Asian has increased its dividend payments each year since 2014, reflecting the company’s growing profitability. The dividend currently yields a healthy 4%, making it an attractive income investment.
– Optimism about future growth: Investors are optimistic about Anglo Asian’s future prospects, given the company’s strong track record of delivering growth and its significant undeveloped resources base. This positive sentiment was reflected in a recent share price rally after the announcement of an agreement to sell part of the Gedabek mine for $110 million.
Why Do Investors Buy Shares in Anglo Asian Mining
There are a number of reasons why investors might buy shares in Anglo Asian Mining. The company has a portfolio of gold, silver and copper properties in Azerbaijan, as well as a number of exploration projects in the country. It also has a strong management team with experience in the mining industry.
The company’s share price has been volatile in recent years, but it has generally trended upwards since it listed on the London Stock Exchange in 2006. This could make it an attractive investment for those looking for growth potential.
Anglo Asian Mining is currently paying a dividend yield of around 2%, which is relatively high compared to other companies in the sector.
This could make it appealing to income-seeking investors.
The company is also debt-free, which reduces its risks and makes it more financially stable than some of its peers. This could give investors confidence that their investment will be safe even if commodity prices fall or there are operational problems at one of its mines.
What is the Company’S Dividend Policy
The company’s dividend policy is to pay out a percentage of its earnings as dividends to shareholders. The exact percentage varies from year to year, but has averaged around 30% over the past decade. This policy has been in place for many years and has served the company well.
It has helped to make the company one of the most profitable in its industry, and has rewarded shareholders with a steady stream of income.
How Does Anglo Asian Mining Compare to Its Competitors
Anglo Asian Mining is a UK-based, AIM traded company with a focus on producing copper, gold and silver in Azerbaijan. The company has an experienced management team with extensive experience in the mining industry and strong relationships with the Azerbaijani government. Anglo Asian Mining’s key competitive advantages include:
– Low cost of production: Anglo Asian Mining’s Gedabek mine is one of the lowest cost gold mines globally, with All-In Sustaining Costs (AISC) of just $689/oz in 2018. This puts the company in a very strong position to generate significant cash flow even at lower gold prices.
– Strong relationships with local government: The company has built up strong relationships with the Azerbaijani government over many years, which provides it with significant advantages in terms of permits, approvals and access to land.
– Experienced management team: The management team has a wealth of experience in the mining industry and has successfully developed other mines in Azerbaijan. This gives them a clear understanding of the local market and operating environment.
Anglo Asian Mining – Share Talk
Conclusion
This morning, shares in Anglo Asian Mining (LSE:AAZ) are down by 7.6% to 8p after the release of its half-year results. The Azerbaijan-focused gold, copper and silver producer reported a loss before tax of $5.1m during the first six months of 2019, compared to a profit of $0.4m in the same period last year. This was driven by a number of one-off items, including an impairment charge relating to the company’s Gedabek gold mine and exploration costs at its Uch kuduk project in Uzbekistan.
Looking ahead, Anglo Asian remains confident that it will meet its full-year production guidance of between 70,000 and 80,000 ounces of gold equivalent from its flagship Gedabek mine. With the gold price trading near seven-year highs, this should provide some support for the share price going forward. However, given the company’s high level of debt (net debt stood at $42m at the end of June), any further weakness in the gold price could put significant pressure on Anglo Asian’s share price.
