AAZ30 Nov 2020 07:27
Anglo Asian reported that they are set to produce between 68,000 and 72,000 ounces of gold equivalent this year and are still on track to achieve sales of over US$100mln this year to December.
This is quite amazing taking into account the coronavirus and a regional war which is now thankfully over.
Next year should be a big one for AAZ, with a year of full production, three dividend payments which should be around 10%, and I would imagine a good constant flow of news from the Irish JV with Conroy Gold. This JV is sure to be high impact and high profile exploration, the target here is potentially substantial, with Anglo having considerable potential upside in terms of percentage for a modest outflow during this stage.
Coming into play and very much not factored in will be the Vejnaly PSA and once the government of Azerbaijan give the ok to start the current PSA goes back to year zero, with the right to explore the contract area for up to five years and then develop and produce for 15 years with two five-year extensions allowed. The contract area covers approximately 300 square kilometres and contains the Vejnaly deposit which contains 6.5 tonnes of gold in the C1 and C2 categories.
Also next year a major development could be relating to the proactive interview where Bill Morgan stated a bit of non public news that they are in discussion and negotiation with the President of Azerbaijan over a new concession linking the Gosha and Gedabek assets, this is 50km, this would be major news, with the infrastructure and low cost production.?
Come January and the Biden administration takes over, the emphasis will be on tackling covid and economic recovery, with a substantial the amount of economic stimulus most likely and not only in the US, we have seen last week the UK spending review and this will be replicated across Europe. 2021 should be a good one for gold and especially AAZ who are debt free and one of the lowest cost producers on the London Stock Exchange and in the lowest quartile, the free cash generation is substantial.
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