LONDON (Alliance News) - Anglo Asian Mining PLC said Monday the devaluation of the Azerbaijan new manat will have a "beneficial impact" on some of its operating costs and overhead, and it is currently evaluating what the devaluation means for its budgets and plans.
The Azerbaijan-focused gold, copper and silver producer noted that the Baku government has switched to a floating exchange rate regime for the manat from a fixed regime. The Azerbaijan central bank quoted an exchange rate for the Azerbaijan manat of AZN1.55 to USD1, compared to the previous rate of AZN1.05 to USD1. This is an effective devaluation of around 48%.
As Anglo Asian's revenue is all denominated in dollars and a substantial portion of its operating costs and overheads are denominated in manats, this should provide a substantial boost to margins.
Shares in Anglo Asian were up 9.7% at 4.66 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Anglo Asian (AAZ)