Anglo Asian Mining misses FY production target, profit hit

Shares in AIM-listed Anglo Asian Mining lost a fifth of their value on Wednesday morning after missing its 2013 production target, causing a 'significant' impact on the company's profitability. Hit by poor weather conditions, for the year gold production at its flagship Gedabek mine totalled 52,068 (2012: 50,025 oz), while copper concentrate production from the Sulphidisation, Acidification, Recycling, and Thickening plant totalled 327 tonnes of copper, 45,621 oz of silver and 39 oz of gold (2012: 502 tonnes copper, 98,158 oz silver, 86 oz gold). In the final quarter of the year Gedabek gold production totalled 14,329. The company completed gold sales of 12,445 oz gold at an average of $1,280 per oz in the fourth quarter, and 46,076 oz at an average of $1,387 per oz for the full year.Chief Executive Officer Reza Vaziri said: "Naturally we are disappointed to have missed our production target for the year due to unexpected weather conditions and processing issues in the fourth quarter of 2013, especially given the successful commissioning of our new Agitation Leaching Plant in June 2013. "This, in tandem with the lower gold price, in particular during the second half, will see the cash cost per ounce increase and profitability for 2013 significantly reduced from 2012." The group said going forward it would take steps to maximise its output and efficiency for 2014 and beyond. "We are committed to increasing Gedabek's gold production by utilising the Agitation Leaching Plant and aim to double production from the heap leaching operation through efficiencies [...] Furthermore we are making good progress on the development of our second mining project in Azerbaijan, Gosha, located 50km away from Gedabek, with the prospect of gold production in 2014." The company's cash position stood at $5.4m at the end of last year.NR