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Gota - completely agree. However I believe restart of smelter is dependant not only on nickel price recovery, but availability of additional concentrates from third parties. Despite this, I still think as long as ASA deliver on their AISC estimates and production figures and based on current spot prices, as you say this is undervalued to the tune of 100-200%, even without restart of smelter. Once you start taking into account the other potentials it could easily increase more than 200%: a) Restart of smelter b) Zani-Kodo Gold resource in DRC: 80% ASA owned, 3million ounces JORC resources at avg 2.43g/t, with trial mining and a pilot gravity plant for gold production with target of 10,000oz by this Financial Year End c) Copper exploration being drilled and funded by Hailang in Katanga d) Diamonds e) Agriculture - I was puzzled by the move into agriculture at first as it was not explained, but after reading the statements with the Annual Report, it does make sense, as long as they don't stretch themselves. ASA own vast tracts of good quality land surrounding their mines. You can either leave it idle, or diversify and use the land for crops and cattle as ASA plan to do. They have bought small amount of cattle as a test and a slaughterhouse in SA (end-to-end supply chain). It has the potential to be a money maker, but even if it isn't, this is a good initiative as part of a Corporate Social Responsibility Policy to improve area, potential for more local jobs etc. etc. I know most here have bought in to ASA as a mining company, however you can't sniff at the potential money large-scale farming can produce.

P.s due to the low Nickel spot price in Q1 2016, in the short term ASA blended a higher % of the higher grade ore than they normally would, producing a 2.3% avg grade. So you can't really use the AISC of 4,586/tn from Q1 as a benchmark. Until we know for sure, it is more prudent to use the estimate of $5,000-6,000 from the annual report. It may of course end up being better, but of course it could end up being worse!

I would not get too excited with assuming Nickel results for last quarter will show a profit. Remember Nickel was roughly only around $8,900/tn spot price (as others have pointed out you then need to take into account the Glencore Offtake Agreement). Nickel AISC are more likely to be in the $5,000 - 6,000 range as the Annual Report estimates going forward. Therefore Nickel may only breakeven or even show a small loss. Of course this would set it up nicely for Q3 considering Nickel is now 10,800/tn. Gold could surprise to the upside though if AISC are in the 900-1050 range, with avg spot price around 1,250oz. That could produce a profit of USD 3-4M, if they produce 17K oz. Again this would be a very nice set up for Q3 with Gold around the 1,350oz mark.

I'm new to AUE so just wondering why the Operating and AISC are so high? Notwithstanding it says "prior to suspension", surely it must be linked? The average grade isn't bad at 2.54g/t

You could always compare in to Shanta, which has AISC of around $664oz and has a market cap of only $50M.

Regarding questions on Smelter cost, re-deepening Project etc. I suggest people read the various opening statements by the Board that was part of the RNS with the Annual Report and make up their own minds. The Re-deepening project has been ongoing for the last 5yrs and will be ready in next financial year. The Smelter cost is still estimated to be below the initial budget of USD 26M. The 30M bond payments (this includes all interest) is paid over 5yrs, commencing Sept 2016. All other loans and overdrafts, again I suggest people read the Annual Report just issued - these are not unknowns and considering your knowledge of the local infrastructure and company, I'm not clear why you're asking some questions which are clearly answered in the Report that you must be aware of. Political risk and indigenisation are valid points. Based on ASA's current market cap, Nickel and Gold prices and all other factors, people have to do their own research and weigh up the Risk V Reward. It doesn't take long to see ZANU-PF are divided on indigenisation and that many in the Party believe it needs to be heavily watered down to attract much needed foreign investment - those are faction that currently appear to have far more power and backing than the likes of Grace Mugabe. People have to make their own judgement as to what they think is the most likely outcome after Mugabe pops his clogs. For me, with current Gold prices, Nickel rebounding, the ASA market cap is easily worth the risk, but it is of course not for everyone. Anyone undecided I suggest you play it conservative and wait until the next quarterly report which is imminent. You may miss a jump in SP if it's good news, but if it shows the early signs of recovery there will be more to come as Gold and Nickel are far higher now in Q3 than they were in Q2.

The Q3 results after the Q2 report that is now imminent should also magnify how undervalued ASA is too. I assume the Q2 results ending June will show Avg Gold of 1,225oz and Nickel still low at 9K/tn or thereabouts. Both could be higher depending on when ASA sold. However July onwards we're now currently looking at Gold 1,350oz and Nickel 10.5K/tn...

Speaking purely in financial and business terms, it's not a pipe dream at all - Mnangagwa's faction appears to be far more moderate than Mugabe's/ G40. They have been more pragmatic and blocked more zealous Zanu-PF ministers from enacting strict interpretations of the failed Indigenisation Law, which has scared away much needed foreign investment. They know this all too well and over the years have spoken about "relaxing" and "easing" conditions in Zimbabwe to compete for global investment, without openly condemning the Law itself while Mugabe is still about.

You are assuming that there are competing factions of equal strength in ZANU-PF to cause a civil war or that they all believe nationalisation is some pancea. Not sure what you would base this on? The more moderate voices in ZANU-PF most certainly do not and Grace Mugabe's faction do not have the support of the Veterans or Military. As soon as Mugabe pops it, she may try and mount a political campaign, but it won't be backed by anything and even her party political support is weak

Short-term agree, but if it takes a bit of civil unrest to get rid of the Mugabes and let more moderate elements of ZANU-PF take control or even elections after his death, it is a good thing

I'm bullish on Shanta but I really don't see it beating the highs in 2012 over the next few months, particularly when they're hedged pretty much all production up to end of the year. My own best case scenario that I would be more than happy with, is if it gets to 12-14p by end of the year. If Gold continues to rise and we get to Nov-Dec where Management hedge again at a higher price, I could then easily see Shanta in 2017 march on to the high teens. The peak in 2012 was around 40p in Feb and 30p in Aug...

This reduction in CAPEX for Makhado is mainly attributable to depreciation of RAND, but good news nonetheless. Makes it a far more attractive proposition, albeit slightly academic as I'm not too clear on COAL's short to medium term plan going forward. I wonder when we'll get a more substantive update on the following statement: "The Company is currently evaluating various opportunities to acquire a cash generating concern, including the possibility of a revised offer for Universal Coal". Is the above still the focus, or has the focus shifted back to Hengshun's equity investment, which as the Quarterly states, progressed at a slower pace due to the focus on UCC.

It had originally been held back by the change-out of the Board around a year ago creating uncertainty, coupled with low Nickel and Gold prices. The low Nickel price was magnified further for ASA as the old Board had a $30M bond (figure incls. interest) which funded the refurb of the Nickel Smelter, to be repaid over 5 yrs, with 1st payment commencing this Sept 2016. ASA was effectively priced to fail at a SP of 0.45, market cap of �7M. Even though the new Board have made significant operational savings that have lowered both Gold and Nickel AISC and Spot prices for Gold and Nickel have increased significantly since Dec 15, ASA has not tracked this increase, as we still need a Quarterly Report to confirm that ASA is making a profit. Report due anytime now. The last quarterly report (Jan-Mar) underwhelmed on the Gold side due to lower production, but was positive on the Nickel side (albeit this was not just due to operational savings, but higher ore grade). There are of course other factors (operations in Zimbabwe and recently with USD shortage and demonstrations, there has been even more political risk than is usual in Zimbabwe), but for me the ones above are the main ones. So if quarterly report for Apr-Jun does not disappoint, then it will prove as you say this is woefully undervalued. Even if it only shows a small profit for Q2, this will set it up nicely for Q3 with Gold and Nickel significantly higher now in July alone.

Who might these "some" be?

You sure they haven't been given the chop in the slaughter house!

They actually mention the KEPL Slaughterhouse in CEO's statement and clearly is to diversify not just from metals, but not having all "producing" assets in Zimbabwe too. I'll agree it appears somewhat leftfield, but only £300K and will no doubt start to pay for itself.

Leak of quarterly report and insider trading of people in the know? I hope that is not the case of course and the quarterly report production figures is still as per or exceeding guidance.

Annual report is out on the 19th July, but based on all the quarterly reports isn't likely to show much profit. The quarterly report which should be out later in July will make more interesting reading in terms of the unknown of what profit ASA is now making based on increases to Nickel & Gold prices. The Annual report will make interesting reading for any new information not already known, on Exploration, Shareholder holding changes, Slaughterhouse/ Agriculture strategy, Director remuneration and confirmation of the final consolidated figures that we already have indication of from quarterly reports.

You both seem to be at complete extremes ramping and de-ramping! It's obvious to see from old quarterly and annual reports that new management have made significant operational cost savings for both Bindura and Freda, but it is also clear in last Q Bindura made additional savings from mining a higher grade. This was prudent in the short term due to the Nickel price being in the 8000s. The price of Nickel has rallied more than 20% and for now is holding above 10K/ton, so if they wanted to, they could ease back a little. ASA as per the re-deepening Project always intended to mine the "massives" higher grade ore. With a Market Cap of only £10M, I believe this is significantly undervalued with Nickel at 10K/ton and Gold at $1,350/ oz... It was undervalued with Gold at $1,250/oz. The bond of $30m is repaid in 18 instalments over 5yrs commencing Sept 2016. This is only $6m/ yr. Just looking at Freda for Gold, the figure of $15M profit appears about right going forward based on current gold price, obviously subject to Oz mined and AISC. Longer term you have Zani for Gold and Hunters for Nickel. Zani is another Freda with 1.7m oz of gold, but at a higher avg grade of 3.5. Hunters Road is a huge Nickel deposit, but at a lower grade of 0.55%, so is obviously only viable with a significant rebound in Nickel. But Hunters is well into the future. Diamonds and Agriculture as well on top of this. A positive curve ball could come from ASA's non-operating 38% in the Copper assets, where Hailang has recently completed its drilling commitments, hence why 62% of the asset was transferred to them. I guess the next quarterly update in couple weeks will show who is right, but I'm optimistic the AISC for Gold production will be in line with previous quarters rather than the historically less productive quarter of Jan-March.

More good news on exploration and we're now only a couple of months from the majority of the old hedges expiring. The question is have Shanta already implemented a new hedge post Sept and if so at what price? If they haven't and are still yet to hedge, as of today we're looking a 1,365oz for gold! Either way it still appears massively undervalued at present. I hope the next quarterly update will be very interesting in terms of their hedging programme going forward.