RE: Thoughts on the cliff?4 Apr 2021 19:09
Fair point about SXX desertjoe, but I feel AAU is a different beast and ‘patience’ will win out. I have had shares in AAU for 6-7 years as well. My first purchase being at 0.86p.
It has been a slow burner until these last 2 years but is now on the cusp of an new, exciting era.
My concerns over the unpredictable Erdogan have been allayed somewhat recently by 2 things:
1) with the completion of the joint venture, what was a 50% owned Turkish JV, is now 75% Turkish owned and 2 big Turkish companies at that- Ozaltin and Proccea. So Kerim has very astutely reduced our exposure to Turkey, made it more ‘Turkish’ and received $37.5M for his troubles.
2) The Turkish government have announced their strong wish to increase internal production of gold to record levels and this fact should bear large when it comes to the speed at which licenses and permits are processed for Salinbas in particular. Bearing in mind that 100% of the gold AAU produces is sold to the Turkish government, I can’t see Erdogan trying to interfere with the laying of the golden goose.
All this and now kerim has money burning in his back pocket and looking at exciting projects in Eastern Europe to get into. His ‘nose’ for finding good prospects has stood him in good stead so far.
I also have a sneaky feeling that the Cyprus tie in with Venus Minerals could take off this year. It is a proven area of resource and with mining techniques so improved since 40/50 years ago, untapped resources previously out of reach are now possible. Also it is diversifying our interests into copper- a prime metal of the future.
Despite the last 2 years showing 50% growth y on y, many shareholders were very unhappy with the way the JV with Ozaltin was handled and I have some sympathy with that view. However, it is now done and from Tuesday, when the new tax year starts and the markets re-open, I do believe we are in for a steady drip of positive news and another 50% increase y/y plus a very generous special dividend. I invest for my pension, so those kind of ‘steady’ increases are more than enough for me. Some people want multiples every year! Anyway- time will tell.