LONDON (Alliance News) - Anglo Asian Mining PLC Wednesday said gold and copper production from its assets in Azerbaijan increased during 2014 and said it has secured financing for the construction of the plant at the Gedabek mine whilst the flotation plant continues to be constructed.
During the year ended December 31, the company reported a 16% increase in gold production to 60,285 ounces compared to 52,107 ounces a year earlier. Anglo Asian sold 50,615 ounces of gold at an average price of USD1,267 per ounce.
Copper production more than doubled to 784 tonnes from 327 tonnes, with sales totalling 1,316 dry metric tonnes of copper concentrate, which generated a total of USD4.4 million in revenue in 2014. Silver production decreased by 53% to 31,177 ounces during the year, from 65,939 ounces in 2013.
"We have achieved our latest target for both gold and copper for the year and hope to continue 2015 on this positive note," said Chief Executive Reza Vaziri.
At the end of December, Anglo Asian reported a cash position of USD400,000, with net debt totalling USD52.4 million.
At the Gedabek gold mine in Azerbaijan, construction of a small scale flotation plant is underway and expected to be completed by the third quarter of 2015. The flotation plant will act as a pilot plant to assess future full scale copper production and it will initially process 379,000 tonnes of stockpiled high copper content sulphide ore to produce a copper and precious metal concentrate, it said.
Anglo Asian has secured a contract for the turnkey construction of the plant at the mine, which is worth a total of USD2.7 million with The Pasha Bank. Pasha will provide the full sum, which will be repaid by the company in two equal instalments in May and November 2016.
"I am also pleased to report that the construction of the small scale flotation plant is progressing well and we have successfully agreed terms for the full financing of its turnkey construction contract," said Vaziri. "This small scale flotation plant, once it commences operations, will enable us to exploit the substantial increase in recoverable copper reserves contained within our latest ore reserve estimate."
Anglo Asian shares were up 4.5% to 6.40 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Anglo Asian (AAZ)