Member Info for CJ66

The weekend FT says their is a physical shortage, which you must think will put prices up.
However this is fairly immaterial unless you can supply the actual gold.
AAZ did say they are looking for alternatives if the situation continues - but it may be a case of who can benefit most in matching any price increase with actual supplies.
I believe the same sort of thing is happening with rhodium and palladium, but with this partly due to mines being made to shutdown - so long so good if AAZ can carry on producing even if not selling!

Not quite business as usual, because although production continues it currently cannot send it's gold dore to Switzerland, who in turn have told refiners to stop refining.
However with year end cash of $20m + sales proceeds received up to at least mid march, it's well positioned to sit this out even if future revenue & profit is now being deferred, and fingers crossed for some continuation of both production and exploration.
Meanwhile gold is going up & down like a dogs hind leg - as with share prices!

Hi 60p
Well this is definitely my only share that is higher now than a month ago!
The end of year update figures bore through.
Again £1m of the profit is 'not real' being currency movement, but even so it leaves a £1m profit and higher assets and cash.
It's still in theoretical default of it's euro loan, but this is on an agreed basis.
All in all it looks great - just shame about all the other shares I own....I hope you have had a little more luck.

Hi 60p,
the included currency movement distorts figures, but they did add cash.
If they can add more it will have a double whammy of both lowering the debt burden as well as adding to NAV.
I have now picked up some more shares so will sit and wait.
My main focus as mentioned before is the skimmed milk powder pricing.
In 6 months at a gross profit level - the rest of the company produced £2.6m of profit, whilst the milk powder lost £690k.
This is important as after expenses, interest (excl. currency) this led to a minimal £131k pre tax profit.
With skimmed prices for 2019 up by an average of 40% (and so far 2020 up 74% over 2018), you can see how a profit from the milk powder would transform the pre tax figures and make the share price look absurdly low.
Its not quite the Palladium, Rhodium price spikes, but looks fundamentally sustainable as the monthly average price has risen every month on the previous month since December 2018.
(The skimmed milk powder is a by product of the cheese making - so is produced whatever, and not a choice of whether to manufacture or not).
I'm now hopeful that this can make an exponential recovery - barring the founders taking it private...!

Currently CAML or AAZ look better bets - with a dividend and low cost production whilst you wait 1

Unfortunately no meaning any more as he has been adding since £2 - so can't read the tea leaves either !

I agree that this may be a dead cat bounce - it's management past and present have been way too optimistic, and wrong enough times that they seem clearly to have no idea or control on where they are heading.
Really disappointing from the initial cash machine it was, and the gambling markets they where in seem to have fundamentally changed, with the finance markets only a fraction of the potential.
If it reaches 30p I'm out with far to long or uncertain to ever get me back to the level it was....not one of my best investments, but learnt plenty!

Doesn't look good to me - low Zinc prices, collapsing 1/2 year figures and now potential disruptions around China.
Long term the prospects are good with the new Zone licence, short term is it back to nearer 50p where it was 3 years ago?
1/2 year eps were just 2.36cents, and full year could be a loss...

Correct the Framework is only a guarantee that they are a number of the bidders (usually about 5 on each level or area on these type of Govt construction frameworks) - they may win 100% or 0%.
Take the 20bn with a pinch of salt as well - there is no guarantee that they will place any amount, but because they should not exceed the total amount, it is likely the total will be far less than this.
They also omit the duration, but I expect it is 5 years (3+1+1 i.e. 3 years but can extend for 2 more)
No guarantees but they are at least on the list !

Hi Halfpenny,
Unfortunately seems an error - as I would have bought more at 11p down!
Says price £1.325 - but buy and sell £1.36 & £1.41.
Unfortunately when I put in 5000 shares to buy it said £1.39, so I didn't - will watch and wait instead.....

It is a quiet period for AAZ - Q1 figures not until mid April and Finals mid May,
so probably only an exploration update between now and then.
However despite 75% increase in share price from this time last year - it's still cheap with the problems and uncertainty keeping gold prices high at present.
I would rather be in this share than most others at present !

Hi 60p, and yes high risk as we discussed - as you say next results will show if they are recovering or just pedalling nowhere - whatever it's a slow mover with no risk of a crowd!

I agree, these types of awards should be struck at current share price when issued - then they would be putting their money where their mouths are. (They are after all already paid a salary to do the job).
To often they say to 'align the Directors interests in line with the company' - I would be very 'aligned' if you gave me a wad of free shares as well.
Shame, as I really like the company.
I worked for Segro once, where they re aligned the awards when the property market fell and they realised they wouldn't reach the targets - and had the cheek to say this was re alignment to reflect current market conditions i.e. make sure still very easy to reach !

I agree, pausing for breath - but exploration update, full year figures and a rise in the gold price already for Jan vs $1410 for last year mean its definitely more up than down medium term.
As a debt free, dividend paying company, it's got much going for it.
I also like the way they have always been pretty straight about prospects, even when things were rocky a while back.

....just to be clear - this is why they are confident of higher Korean sales this next year,
but clearly the previous 'false' US sales mean that they will decline for the year (excl. Nambe).
The important figure is however an overall decline in like for like sales of 5% which is of some concern.

I'm not sure your reading this correctly - they state the US decline was driven by stopping reshipping on to Korea.
i.e. They were making what they thought were extra sales to the US - but these were going to Korea, which they have now stopped.
This meant falsely higher US sales and a big decline in Korean sales - not a pretty result, but not untrustworthy - rather they were duped by untrustworthy agents!

I'm with you on the dividend short term and hopes for longer term,
but not surprised little share reaction as the main worry is still the 84% only coverage of that dividend.
That takes hard pedalling in downtrodden retail.

6op - you were right - I purchased the shares at 2.34p!
Relatively small value, so hope they recover with no buyout, and pinning my hopes on the increasing price of skimmed milk powder - the things I do !!

Hate to say I hope your wrong - but I will, however I understand the sentiment !
Interims were T/O up 17%, Profit up 30% and cash generated up 41% - with Dudson designs not yet contributing materially.
Against that they do have a high PE ratio and low dividend % with the price having nearly doubled in the year 2019.
It's a growing business at a deserved premium, but there is no room for a slip up - I would buy them back if the price does fall very far....

Q4 and full year figures out around mid Jan - which should be interesting ....