Last checked at 29 Jun 2021 07:00
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
29 June 2021
Anglo Asian Mining PLC
Annual General Meeting 2021 - Responses to Questions submitted to the Company
Prior to the Meeting
Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM-listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide responses to questions it has received from shareholders prior to its Annual General Meeting for 2021.
SHAREHOLDER QUESTION | COMPANY RESPONSE |
What are the Company's plans to advance any increase in production? | Short-term (next two years) The Company is planning to increase production by bringing the Zafar deposit into production as follows: · July 2021 - Maiden JORC mineral resource estimate. · Q4 2021 - Final JORC mineral resource estimate. · H1 2022 - JORC mineral reserve estimate and commence tunnelling. · H2 2022 - Large scale underground construction begins. · H1 2023 - Production begins. Some ore extraction is expected in 2022 during development as the mine moves towards full scale production. The Company is also planning to produce ore from Avshancli in Q4 2021/Q1 2022. Long-term (after two years) The Company plans to increase production from further deposits identified by its current geological exploration programme at Gedabek, Gosha and Ordubad and existing deposits in the newly restored contract areas. |
Exactly when will the Board be in a position to expand on its growth ambitions with much more detailed metrics and timescales, against which its performance may be more objectively judged by investors? | The Company will share its short-term production plans as follows: · Avshancli - by end of 2021. · Zafar - 2022 when the JORC mineral reserve estimates are published. Shareholders will also be updated about additional production from the restored contract areas and from further deposits identified by the current exploration programme as the Company's plans develop. |
What level of production would be classified by the Company as "mid-tier"? | +100,000 gold equivalent ounces per annum. |
If the Company cannot advance its production to mid-tier level and there is no call on the Company's funds, can they be returned to shareholders? | The Company will return surplus funds to shareholders if there is no call on those funds. However, given the development costs of Zafar and other opportunities, the Company believes its current funds will be required for investment in its business. |
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
**ENDS**
For further information please contact:
Reza Vaziri | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
Bill Morgan | Anglo Asian Mining plc | Tel: +994 502 910 400 |
Stephen Westhead | Anglo Asian Mining plc | Tel: +994 502 916 894 |
Ewan Leggat | SP Angel Corporate Finance LLP Nominated Adviser and Broker | Tel: +44 (0) 20 3470 0470 |
Adam Cowl | SP Angel Corporate Finance LLP Nominated Adviser and Broker | Tel + 44 (0) 20 3470 0470 |
Megan Ray | Blytheweigh Financial | Tel: + 44(0) 20 7138 3224 |
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio at its active Gedabek, Gosha and Ordubad contract areas assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement ("PSA") modelled on the Azeri oil industry. The Company also has three recently restored contract areas in the formerly Occupied Territories and Karabakh under its PSA and which the Company has started to preliminary evaluate.
The Company's main operating location is the Gedabek contract area ("Gedabek") which is a 300 square kilometre area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009. Mining at Gedabek was initially from its main open pit which is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.
The Company produced 67,249 gold equivalent ounces ("GEOs") for the year ended 31 December 2020. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies. The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant.
The Company has a production target for the year to 31 December 2021 of 48,000 ounces to 54,000 ounces of gold and 2,500 tonnes to 2,800 tonnes of copper. This total production target expressed as gold equivalent ounces ("GEOs") at budgeted prices is between 64,000 GEOs and 72,000 GEOs.
Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for properties in other jurisdictions in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.