Anglo Asian Mining and Duke Royalty

Anglo Asian Mining (AIM All-Share, Market capitalisation: ÂŁ132m, 119p and 4.7% of JIC Portfolio and 11.8% of JIC Top 10):

Aerial ZTEM and Aeromagnetic Survey Update

Two new highly prospective targets identified – Korogly and Zehmet

Gold grades of 43 and 95 grams per tonne found in two surface rock samples at Zehmet

Conclusion: Some meat on yesterday’s bones and good news it is. This sounds like a good find and one that can be developed quickly and as they are shallow targets, at not too much cost. It also says that the processing of the ores would not require a major reconfiguration of the company’s current processing facilities. It will need to prove the geological continuity of the targets with Gedabek. Clearly good news today which I think will help the share price make further gains. I conclude as yesterday: It is valued at only 5.5x 2018 free cashflow. It has net cash and the prospective 2019 dividend yield is at least 4.8%. Very Happy Holder in both the JIC Portfolios.

Further to yesterday’s geology and exploration report it has this morning, announced the identification of two targets which are contiguous with its current Gedabek Contract area, in which it has three gold mines. It says, “Finds such as these are rare in gold exploration and it is now a priority for us to find the source of this mineralisation.” It goes on, “A mining concession with the location and scale of Gedabek is a rare and exciting opportunity. Whilst already hosting three mines, it is evident from these results and other complementary exploration work that the full potential of Gedabek has yet to be realised. We are now working hard on our ultimate objective of making a significant new discovery to create further value for all shareholders”.

There is one slight note of caution: “Several of the targets, including Zehmet, straddle the boundary of the Gedabek contract area. Under the Company’s production sharing agreement, the Company has the right to explore for and exploit mineral deposits outside the boundaries of its contract areas provided geological continuity can be demonstrated to within the boundary. This geological continuity must be demonstrated on the basis of structural geology framework and ore formation models.”


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Duke Royalty (DUKE.L, Market Cap ÂŁ94m, 47p, 4.7% of JIC Portfolio and 10.1% of JIC Top 10)

Duke has announced that the next quarterly dividend will be 0.7p and will go ex-dividend next Thursday, 27th June.

It looks like I will have to wait a little longer for an increase in the quarterly dividend but still happy with yesterday’s decision to add. The yield at four payments of 0.7p is still 6.0%. Forecasts for the current year, ending 31st March 2020 are for 3.4p, giving a yield of 7.2%. There might be some disappointment today that the dividend wasn’t increased at this stage, but on anything but a one-day view, I remain a Happy Holder!


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