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Dibs - thanks for clarification good to know. I didn't know what exact production from pilot plant would be in 2017, so I just said past the 85K oz, which is target for Luika only

The slight delay in pilot plant is more than offset by the good drilling results. I thought it was bit of stretch for pilot plant to be ready in Q1 '17 and based on SP it really didn't look like production from Singida was priced in in any event. The grades are consistently of high grade - although maybe not "bonanza" compared to recent Ilunga results. Many things aren't reflected in current Shanta SP, let alone a second production site in 1H 2016 which could boost Shanta's annual production past the 85K Oz

October should be interesting month with Q3 Report and Singida drilling results. Perhaps they'll also be update on Singida Pilot Plant (1st gold pour targeted Q1 2017) with the drill results and Q3 Report include confirmation of receiving $5.25m for silver stream agreement, helping along the ongoing reduction of net debt considerably

Just realised payment of bond is actually $6m per year, so add an extra $1m profit to my calcs, but this is back of fag calcs anyway and dependant on spot price, profits could be far higher (or less of course if spot prices decline). Was merely illustration to show how undervalued ASA still is in comparison to market cap at current spot prices, if smelter restarts as planned, IMO of course.

NI - I believe the Smelter and Zani Kodo are both hugely significant - the Smelter more so as it is closer to hand, lead to profit and long-term potential restart of refinery. Potential of Smelter: a) If you assume price per ton to ASA of $9,371/tn (85% of $10.5K/tn spot) b) Deduct AISC estimate of $5,000/tn c) Left with $4,371 profit x 8,500tn production target = $37.15m profit per year. More if Nickel Spot can increase, but with Indonesia exports partly offsetting Philippines mine closures, l'll leave it near current spot. d) Does not take into account 7m per year to pay $30m 5yr bond ($20m bond + 10% interest), so even after this you have $30m profit (75% to ASA - $22.5m). This is more than potential $21m Profit for Freda (70K oz x $350 profit based on AISC of $1,000). e) However the above does also not take into account potential profit from treating PGM metals from the likes of Amplats, Mimosa etc. Profit from this could be significant. 2017 could shape up to be a very good year too - Smelter restart, Zani, Copper results and restart of larger scale Diamond operations and beginnings of commercialisation of Agriculture sector. The above does not take into account changes in Spot Prices. Based on Bindura Nickel and Freda Gold alone, you're looking at $43.5m + profit.

Ignore duplicated text in last paragraph!

Agree very positive update. I attended the AGM as I was in London on 27th and it is in line with management's answers to number of questions. I came away with very positive feeling and was impressed by the revamped board and direction they plan to take ASA in. For me the major short-term positive to note is the smelter is not dependant on a third party agreement. This is major update from the Bindura and ASA annual reports, where smelter restart was caveated based on both spot nickel and third party concentrate. The Smelter was discussed at length during the AGM and clear to see it is not a "white elephant" as some have tried to insinuate here. One other item to note from AGM is that ASA has good relationships and links with Governments in both Zimbabwe and DRC. This is enhanced with appointment of David Murangari. I hope Management does everything in its power to market the Smelter to the Government and try to pre-empt the PGM miners from lobbying for deferring the export levy past a time where smelter could be modified for PGMs. Smelter restart is no longer reliant on this, but could be a significant additional revenue stream that benefits ASA, Government and PGM miners (20% export levy or commercial agreement with ASA).s is enhanced with appointment of David Murangari. I hope Management does everything in its power to market the Smelter to the Government and try to pre-empt the PGM miners from lobbying for deferring the export levy past a time where smelter could be modified for PGMs. Smelter restart is no longer reliant on this, but could be a significant additional revenue stream that benefits ASA, Government and PGM miners (20% export levy or commercial agreement with ASA).

Monies from where? Have far less money than before and with rebound in coal, offer would be higher...

Very good RNS. I was bullish on ASA purely on gold and that Nickel may breakeven this 3rd Q. But they're making a substantial profit on Nickel too. Smelter should be commissioned Q1 2017 I believe, maybe it was actually Dec 2016. However startup of smelter is dependant on volumes and reaching agreements with Third Parties. If the next RNS for London AGM or one for 3rd Q report provides an update on nearing or concluding third party agreements to restart smelter, this would be due huge re-rate.

If smelter is successfully commissioned and restarted, that would be the real reward and where big moves in SP could happen. Nickel ops would go from merely breaking even to a major profit centre. If it was restarted and gold continues to be strong I'd be looking for 4.5p Why I'm very interested to see updates on smelter and potential third party concentrate agreements with PGM miners or others. I hope there's a lot of marketing of the smelter and lobbying by ASA to the right people in the government

The grades for Freda this year are not poor, grades of 1.8-2.2 g/t are the norm and the profit generation at $1,350 is substantial when compared to the market cap. The tonnages mined are more than what the mills have been able to handle, so more milling capacity simply makes operation more efficient. Less idle time. Still not clear to me why you have such a chip on your shoulder with ASA? You're clearly not invested and yet it's the only share you post on and have very detailed knowledge on. It's certainly not for any altruistic reasons...

The nearest nickel mine is actually only across the border in Zambia and before it was put on care and maintenance, used to railcar its ore all the way down to the Botswana Smelter. In any event all it takes is a deal with the PGM miners, who with exception of Zimplats with their own Smelter, are stuck between a rock and a hard place

OK but from my limited knowledge of the area there are no other third party nickel mines. One across the border in Zambia handily with a Chinese company backing it, but it won't restart until nickel prices pick up So that leaves the PGM miners as per my post below, unless there are other miners I'm missing?

What third party mines?

Daisan - good point I had not thought of that. So because Shanta have hedged 100% of production up to Dec 16, they run the risk that if they come under production, they will have to buy on open market to make up shortfall. I assume Shanta are extremely confident of making their forecast production target and then some, but I'll await to see production figures for this quarter in Oct

Good overview Daisan. The downsides that have held Shanta back have been debt and hedging (hindsight is a great thing). Had they not have hedged I believe this would be in 12p territory by now. In short-term the botched placing, which didn't appear necessary from cashflow, also hurt sentiment and it has taken time to build up positive sentiment again. This RNS has us back on the right track However the hedging programme also shows a responsible management that aren't willing to take risks and to ensure debt can be repaid, so going forward this is actually a plus for Shanta with higher gold price to be locked in.

Hopefully we won't see 9p again! Onwards and upwards

Great news and not just increase in resource, but average grades too!

The big gain is not only transport, but no longer being constricted by an offtake agreement where you only receive 65% of spot. Completely agree running costs aren't free and I don't think you can automatically assume AISC will come down - transport costs of ore may merely be replaced by smelter running costs. However you could have an AISC of around $6K/tn compared to full Nickel spot price of $10K/tn. You would suddenly go from breaking even at $10K/tn to making $4K profit per tonne. Also agree it's down to politics now, but would think ASA are by far in the strongest position. Nomz is right that not enough volumes to restart smelter from Bindura alone - need 3rd Party concentrates. May even need a higher Nickel price too which ASA has always caveated as being required for restart. 3rd Party concentrate unlikely to come from other Nickel ops, so only option I'm aware of is therefore PGMs. The Zimbabwe Government have actually been pragmatic in this situation and gave the PGM miners a 2yr grace period and deferred an export levy on concentrates. This ends in Jan 2017. With a new smelter commissioned requiring some modification to handle PGMs, do you think the Government will allow PGM miners another deferral of 20% export levy? I really doubt it. And I doubt PGM miners will pay 20% fee when they can negotiate with ASA. There was some huge buying behind the scenes in early July. Not sure what it was all about, but maybe someone knows something regarding the Smelter...

If you're referring to running costs, then it will all be part of AISC and come out of the wash, but overall costs should come down