Last checked at 21 Dec 2015 15:03
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
21 December 2015
Anglo Asian Mining plc
Floating exchange rate regime announced and devaluation of the Azerbaijan Manat
Anglo Asian Mining plc ("Anglo Asian" or the "Company") is the AIM listed gold, copper and silver producer focused in Azerbaijan. Note that all references to "$" are to United States dollars.
The Government of Azerbaijan announced today that it had switched from a fixed to a floating exchange rate regime for the Azerbaijan New Manat ("AZN"). The Azerbaijan central bank today quoted an exchange rate for the Azerbaijan New Manat of $1 equals AZN1.55 versus the previous rate of $1 equals AZN1.05. This is an effective devaluation of approximately 48 per cent.
A substantial portion of the Company's operating costs and overheads are denominated in Azerbaijan New Manats whilst the Company's revenues are all denominated in US dollars. This move to floating rates and the associated devaluation, whilst unwelcome for the people of Azerbaijan, will therefore have a beneficial impact on some operating costs and some overheads of the Company. The Company is currently evaluating the effect of the Azerbaijan New Manat moving to a floating exchange rate regime and the effective devaluation on its budget and plans and will update its shareholders as appropriate.
**ENDS**
For further information please visit www.angloasianmining.com or contact:
Reza Vaziri | Anglo Asian Mining plc | Tel: +994 12 596 3350 |
Bill Morgan | Anglo Asian Mining plc | Tel: +994 502 910 400 |
Ewan Leggat | SP Angel Corporate Finance LLP Nominated Adviser and Broker | Tel: +44 (0) 20 3470 0470 |
Laura Harrison | SP Angel Corporate Finance LLP | Tel + 44 (0) 20 3470 0470 |
Felicity Winkles | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Lottie Brocklehurst | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
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, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.
The Company developed Azerbaijan's first operating gold/copper/silver mine, Gedabek, which commenced gold production in May 2009. Gold production for the year ended 31 December 2014 from Gedabek totaled 60,285 ounces with 784 tonnes of copper also produced. The Company has a second mine, Gosha, which is 50 kilometres from Gedabek, and the ore produced at Gosha is processed at Anglo Asian's Gedabek plant. The Company is also developing the Gadir underground mine which is co-located at the Gedabek site. The Company's production target for full year 2015 is between 72,000 ounces and 74,000 ounces of gold. Gedabek is a polymetallic deposit and its ore has a high copper content, and as a result the Company produces copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. Anglo Asian has also commenced production of a copper and precious metal concentrate using a low capital expenditure flotation plant which it has just commissioned. This will initially process tailings from its agitation leach plant.
Anglo Asian is also actively looking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.