Hardman & Co Research: Prodigious cashflow AND bigger "system" potential

Anglo Asian Mining (AAZ) is a highly cash-generative miner of gold, silver and copper from four mines in Azerbaijan, where it has close ties to the government. In 2018, it produced 83,376 of gold equivalent ounces (GEOs), paid its first dividend and had net cash on its balance sheet. At this stage, we have made the highly conservative assumption of no production beyond 2025. Nevertheless, our DCF valuation of 156p reflects AAZ's prodigious cash generation and gold/copper stockpiles. Indeed, we estimate that the company's aggregate underlying free cashflow during 2019-25 will be in excess of its current market capitalisation and the annual free cash yield will average 16.2%. Please click here for the full report:

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