Anglo Asian Mining; share price up 9.5% yesterday

Anglo Asian Mining (AIM All-Share, Market capitalisation: £156m, 149.5p and 5.6% of JIC Portfolio and 14.2% of JIC Top 10):

Nice to see Anglo Asian Mining up 9.5% today.

It was sparked by an announcement from the company:

“Anglo Asian Mining PLC, the AIM listed gold, copper and silver producer focused in Azerbaijan, notes the recent press report regarding the Ministry of Economy of Azerbaijan engaging a consultant to advise on a possible transaction with R.V. Investment Group Services, LLC, a subsidiary of Anglo Asian whose principal asset is the Group’s production sharing agreement with the Government of Azerbaijan dated 20 August 1997.
The Company notes that, while it has been in recent discussions with the Government of Azerbaijan and other parties in relation to potential transactions, such discussions are preliminary and no terms have been discussed or agreed. There can be no certainty that these discussions will result in any transactions. The Company further notes that it regularly has discussions with other parties regarding the development of the Group.”

Conclusion: If this comes to something it could be a lovely pay-day for Anglo Asian shareholders. Given that the Azerbaijani government can see the huge potential AAZ has to increase production, it is to be hoped that they are advised by its consultants to pay a decent price to get hold of the assets. I have seen some speculate that 300p – 400p should be the right price. Seems optimistic to me but we’ll just have to wait and see. It is encouraging that AAZ also says that it regularly has discussions with other parties. If these particular talks do not lead to anything then perhaps future talks will. I currently have it as a Medium Risk, High Reward. I remain happy with that rating purely on a going concern basis (rather than a takeover target) and am a Happy Holder!

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