Last checked at 24 Nov 2020 07:00
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
24th November 2020
Anglo Asian Mining plc
Turnover Guidance Maintained at Over One Hundred Million Dollars
Revised Production Guidance of 68,000 to 72,000 Gold Equivalent Ounces
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, provides its updated guidance for its turnover and production at its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the year ending 31 December 2020 ("FY 2020"). Note that all references to "$" are to United States dollars.
The Group's revised FY 2020 production guidance is between 68,000 to 72,000 gold equivalent ounces ("GEOs"). As the Company previously advised in its RNS dated 14 October 2020, this reduction is mainly due to some delays in underground development, resulting from the conscription of a number of engineering staff, together with slowed tunnelling progress due to underground rock faulting. The Company can confirm that it is still on track to achieve turnover for FY 2020 of over $100 million.
Staff members who were conscripted due to the territorial dispute with Armenia are expected to return to work early next year after the military starts to demobilise. The Company's operations at Gedabek suffered no physical damage and are operating normally, which is a credit to the management and staff working under the pre-ceasefire conditions.
Now that a peace agreement has been signed, which appears to have ended the fighting in Azerbaijan, the Company will, in due course, inform the market on its plans for the three contract areas, included in the Company's 1997 Production Sharing Agreement with Azerbaijan, that are located within those areas that have now become accessible.
Anglo Asian CEO, Reza Vaziri, said "On reflection, this has been a challenging year for the Company. The difficulties started with the on-going restrictions imposed due to the COVID-19 pandemic. The year is ending with a peace treaty in place between Azerbaijan and Armenia with international peace-keepers helping maintain the agreement.
"Despite all these headwinds, it is a testament to the entire workforce that the Company has continued in operation and remains on track to achieve a turnover of over 100 million dollars for the year, with a significantly strengthened balance sheet, whilst still paying dividends to shareholders."
**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 |
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 | 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, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.
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 81,399 gold equivalent ounces ("GEOs") for the year ended 31 December 2019. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. 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 2020 expressed as gold equivalent ounces ("GEOs") of between 68,000 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. It has recently announced that it will enter into a joint venture with Conroy Gold and Natural resources PLC to explore and develop various gold properties in The Republic of Ireland and Northern Ireland.