(Alliance News) - Azerbaijan-focused Anglo Asian Mining PLC is now debt free, the company said on Wednesday, following the final repayment of a bank loan.
Anglo Asian signed a loan with Pasha Bank in February 2018, worth USD15 million, at an interest rate per year of 7%. Only USD13.5 million was eventually drawn down, and the whole loan has now been paid off.
Chief Executive Reza Vaziri said: "I am delighted to announce the company has made the final repayment of the Pasha Bank refinancing loan, marking the significant milestone of Anglo Asian now being debt free.
"The facility was taken out to improve the company's financial performance and provide operational flexibility. Given that the net debt of the company peaked at over USD50 million in 2015, this milestone is a remarkable achievement."
"Since 2015, as well as paying off its debt, the company has continued to invest in its business, embarked on a three-year exploration programme at its contract areas, commenced payment of regular dividends and built up a significant holding of cash. This amply demonstrates the robust cash generation of the company," Vaziri continued.
"The financial flexibility of being debt free allows Anglo Asian to focus on the growth of the business which I look forward to updating the market on as and when appropriate."
Anglo Asian in January said it had enjoyed a "strong" 2019, with gold equivalent ounce production falling 1.1%. This was due, however, to the rise in the price of gold relative to the market price of copper.
Financial performance during the year was "exceptional", Vaziri said at the time.
Anglo Asian shares were 0.7% higher on Wednesday morning in London at a price of 142.00 pence each.
By George Collard; georgecollard@alliancenews.com
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Anglo Asian (AAZ)