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LONDON (Alliance News) - Anglo Asian Mining PLC Friday said its gold production rates were strong in its second quarter and its full-year copper target has been increased due to strong production from its sulphidisation, acidification, recycling, and thickening (SART) processing operations.
The gold producer with operations in Azerbaijan said gold production for its second quarter ended June 30 increased 39% on the previous quarter and 77% on the previous year to 15,736 ounces, with the vast majority coming from its agitation leaching plant at the Gedabek project.
The company said its gold sales volumes increased to 13,142 ounces at an average price of USD1,292 per ounce from 10,403 ounces at USD1,303 in the previous quarter.
Anglo Asian said its copper production from the SART processing sites increased 62% to 228 tonnes from 141 tonnes in the previous quarter, and its copper concentrate shipments totalled 523 dry metric tonnes containing 280 tonnes of copper, 13,218 ounces of silver and 1.14 ounces of gold.
However, the company did note that its silver production rates fell 33% to 8,785 ounces from 13,139 ounces previously.
Anglo Asian's half-year gold production rate was 27,054 ounces, silver production rate was 21,924 ounces, and copper production was 369 ounces.
The company said that it is maintaining its gold production target for 2014 at between 62,000 ounces and 67,000 ounces, but it is increasing its copper production target from SART to 750 tonnes.
During the period, Anglo Asian also signed a three-year copper sales contract with Industrial Minerals SA and managed to increase its gold resource at Gedabek by 29% to 1.4 million ounces in the measured and indicated categories.
The company said in June that it expects a small loss for the six months to end-June, as it saw a slow start to the year and incurred high cash costs during the first five months of 2014.
Anglo Asian expressed confidence at the time that 2014 would be a "transformational year" for the company, citing improvements in month-on-month production, cost saving initiatives, increased processing capacity at its Gedabek mine in Azerbaijan, and a second gold project due to contribute in the year.
It reiterated a commitment to advance its second gold project at Gosha, in hopes of developing a small, high-grade underground gold mine with an average rate of production of 15,000 to 20,000 ounces per year.
"Whilst we have had a slow start in terms of the first half 2014 production at Gedabek, we are now seeing month on month production improvements and believe, with our cost saving initiatives such as reductions in cyanide costs and increased processing capacity at Gedabek that our second half 2014 performance will be much stronger," Chief Executive Reza Vaziri said in a statement on Friday.
Anglo Asian Mining shares were up 14% to 15.75 pence, putting them in the top five AIM All-Share risers during early trading on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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