LONDON (Alliance News) - Anglo Asian Mining PLC Wednesday said it missed its production target for 2013 and expects to report lower overall profit in its upcoming full-year results.
The gold producer with operations in Azerbaijan said that despite increasing its production to 52,068 ounces for the twelve months ended December 31, compared from 50,025 ounces the previous year, the company failed to achieve its original production target for the year of 60,000 ounces.
In December, the company warned of lower full-year production than expected after lower gold recoveries than it hoped in the fourth quarter from its Gedabek mine.
Anglo Asian said Wednesday its full-year gold sales volume was 46,075 ounces of gold at an average of USD1,387 per ounce.
The company also said the lower production, coupled with a lower gold prices during 2013 means that it expects to see the cash cost per ounce increase and profitability for 2013 significantly reduced from 2012.
However, the company said it is making significant progress on the development of its second mining project in Azerbaijan. A new piece of equipment, the Continuous Knelson Concentrator, which should help production at Gedabek, is targeted to be online by the second quarter 2014.
Anglo Asian shares were down 17% to 19.84 pence, putting it in the top AIM losers Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Anglo Asian (AAZ)