For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240718:nRSR8208Wa&default-theme=true
RNS Number : 8208W Anglo Asian Mining PLC 18 July 2024
18 July 2024
Anglo Asian Mining plc
Q2 & H1 2024 Production and Operations Review
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, provides the following
production, sales and operational review for the three months to 30 June 2024
("Q2 2024"or the "Quarter") and six months to 30 June 2024 ("H1 2024" or the
"Half Year").
The Company expects the administrative formalities relating to the tailings
dam wall raise to be completed imminently, while production during the Half
Year continued to be significantly reduced due to operations remaining
partially shut down. Gold production from heap leaching and copper production
from SART continued throughout the Half Year.
Operational highlights
· All technical and environmental approvals now received for the raise
of the tailings dam wall
· AzerGold CJSC has now become the party to the Group's production
sharing agreement ("PSA")
· $5 million prepayment advance for concentrate sales agreed with
Trafigura with $3 million received in June
Q2 and H1 2024 Production update
· Total Q2 2024 production of 2,707 gold equivalent ounces ("GEOs") (Q2
2023: 12,422 GEOs)
o Copper production of 46 tonnes (Q2 2023: 1,014 tonnes)
o Gold production of 2,438 ounces (Q2 2023: 7,870 ounces)
o Silver production of 6,341 ounces (Q2 2023: 22,010 ounces)
· Total H1 2024 production of 5,270 GEOs (H1 2023: 23,391 GEOs)
o Copper production of 100 tonnes (H1 2023: 1,870 tonnes)
o Gold production of 4,704 ounces (H1 2023: 14,623 ounces)
o Silver production of 12,740 ounces (H1 2023: 44,696 ounces)
H1 2024 Sales and cash update
· Total gold bullion sales of 6,000 ounces at an average of $2,174 per
ounce (H1 2023: 10,506 ounces at an average of $1,939 per ounce)
· The Group has maintained a strong focus on cash and strict cost
control, with a net debt position of $12.1 million at 30 June 2024 (31
December 2023: $10.2 million)
· Net cash outflow (before receipt of advance from Trafigura) in the
Half Year of only $4.9 million due to sale of opening inventory along with
strong cost control. Net cash outflow including offset of the advance from
Trafigura of $3.0 million of $1.9 million
· Inventory valued at $3.6 million at 30 June 2024 (31 March 2024:
1,550 ounces of gold valued at $3.5 million and copper concentrate valued at
$0.7 million)
The Company expects to issue annual production guidance for 2024 in due
course, following the resumption of full production.
Anglo Asian CEO Reza Vaziri commented:
"Despite the ongoing challenges faced by the Company, I am pleased with the
substantial progress we have made, including amendments to our PSA and
delivering all necessary technical and environmental approvals for the
tailings dam wall raise, a critical step towards resuming full production of
our operations.
"We expect to conclude all formalities imminently, enabling us to fully
capitalise on the current robust metal prices to the benefit of our
shareholders. We look forward to returning to normal operations and production
shortly, and providing production guidance for the year."
Note that all references to "$" are to United States dollars.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014, which was incorporated into UK law by the European
Union (Withdrawal) Act 2018, until the release of this announcement.
For further information please contact:
Anglo Asian Mining plc
Reza Vaziri, Chief Executive Officer Tel: +994 12 596 3350
Bill Morgan, Chief Financial Officer Tel: +994 502 910 400
Stephen Westhead, Vice President Tel: +994 502 916 894
SP Angel Corporate Finance LLP (Nominated Adviser and Broker) Tel: +44 (0) 20 3470 0470
Ewan Leggat
Adam Cowl
Hudson Sandler (Financial PR) Tel: +44 0) 20 7796 4133
Charlie Jack
Harry Griffiths
Notes to editors
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a
high-quality portfolio of production and exploration assets in Azerbaijan.
The Company produced 31,821 gold equivalent ounces ("GEOs") for the year
ended 31 December 2023.
On 30 March 2023, the Company published its strategic plan for growth which
shows a clearly defined path for the Company to transition to a multi-asset,
mid-tier, copper and gold producer by 2028, by which time copper will be the
principal product of the Company, with forecast production of around 36,000
copper equivalent tonnes. It plans to achieve this growth by bringing into
production four new mines during the period 2024 to 2028 at Zafar, Gilar,
Xarxar and Garadag.
https://www.angloasianmining.com/ (https://www.angloasianmining.com/)
Q2 2024 Production overview
· Gold production of 2,438 ounces (Q2 2023: 7,870 ounces):
o 2,433 ounces contained within gold doré
o 5 ounces from sulphidisation, acidification, recycling and thickening
("SART") processing
· Copper production of 46 tonnes (Q2 2023: 1,014 tonnes) from SART
processing
· Silver production totalled 6,341 ounces (Q2 2023: 22,010 ounces):
o 1,532 ounces contained within gold doré
o 4,809 ounces from SART processing
Q2 2024 Sales overview
· Total gold bullion sales of 2,075 ounces at an average of $2,350 per
ounce (Q2 2023: 4,787 ounces at an average of $1,992 per ounce)
· Total concentrate sales of 260 dry metric tonnes ("dmt") with a value
of $1.0 million (Q2 2023: 5,501 dmt with a value of $7.7 million)
Q2 2024 Financials overview
· Cash of $7.8 million ($9.8 million at 31 March 2024) including
restricted cash
· Debt of $19.9 million ($20.7 million at 31 March 2024)
· Net debt of $12.1 million ($10.9 million at 31 March 2024)
· $3 million advance payment received from Trafigura in June 2024
· Unsold gold doré and copper concentrate inventory of $3.6 million at
30 June 2024
The Company mined the following ore during FY 2023 and the six months to 30
June 2024:
12 months to 3 months to 3 months to
31 December 2023 31 March 2024 30 June 2024
Mine Ore mined Average Ore mined Average Ore mined Average
gold grade gold grade gold grade
(tonnes) (g/t) (tonnes) (g/t) (tonnes) (g/t)
Open pit 1,180,695 0.38 186,122 0.81 101,199 0.74
Gadir - u/g 109,320 1.64 50,964 2.18 43,326 1.33
Gedabek - u/g - - - - - -
Total 1,290,015 0.49 237,086 1.10 144,525 0.92
The Company processed the following amounts and grades of ore by leaching for
FY 2023 and the six months to 30 June 2024:
Quarter ended Ore processed Gold grade of ore processed
Heap leach pad crushed ore Heap leach pad ROM Agitation leaching Heap leach pad crushed ore Heap leach pad ROM Agitation leaching
(tonnes) ore plant* (g/t) ore plant*
(tonnes) (tonnes) (g/t) (g/t)
31 March 2023 94,518 196,595 62,006 0.74 0.49 1.30
30 June 2023 56,522 202,788 105,213 0.75 0.46 1.40
30 September 2023 25,690 34,621 - 0.83 0.45 -
31 December 2023 - - - - - -
FY 2023 176,730 434,004 167,219 0.76 0.48 1.40
31 March 2024 120,528 - - 0.68 - -
30 June 2024 32,441 - - 0.59 - -
H1 2024 152,969 - - 0.66 - -
* includes previously heap leached ore.
The Company processed the following amounts of ore and contained metal by
flotation for FY 2023 and the six months ended 30 June 2024:
Quarter ended Ore processed Gold content Silver content Copper content
(tonnes) (ounces) (ounces) (tonnes)
31 March 2023 192,516 1,487 19,787 1,133
30 June 2023 190,593 1,033 10,380 1,191
30 September 2023 62,369 478 4,358 363
31 December 2023 - - - -
FY 2023 445,478 2,998 34,525 2,687
31 March 2024 - - - -
30 June 2024 - - - -
H1 2024 - - - -
The following table summarises gold doré production and sales at Gedabek for
FY 2023 and the six months 30 June 2024:
Quarter ended Gold produced* Silver Gold sales** Gold Sales price
produced*
(ounces) (ounces) (ounces) ($/ounce)
31 March 2023 5,965 2,841 5,719 1,895
30 June 2023 7,375 3,593 4,787 1,992
30 September 2023 4,001 1,488 2,900 1,949
31 December 2023 2,975 1,610 2,416 2,004
FY 2023 20,316 9,532 15,822 1,951
31 March 2024 2,259 1,512 3,925 2,080
30 June 2024 2,433 1,532 2,075 2,350
H1 2024 4,692 3,044 6,000 2,174
Note
* including Government of Azerbaijan's share
** excluding Government of Azerbaijan's share
The gold and silver production from agitation and heap leaching for FY 2023
and the six months 30 June 2024 is as follows:
Quarter Gold Silver
ended
Agitation Heap Total Agitation Heap Total
leaching leaching leaching leaching
(ounces) (ounces) (ounces) (ounces) (ounces) (ounces)
31 March 2023 2,105 3,860 5,965 1,077 1,764 2,841
30 June 2023 3,463 3,912 7,375 1,735 1,858 3,593
30 Sept 2023 - 4,001 4,001 - 1,488 1,488
31 Dec 2023 - 2,975 2,975 - 1,610 1,610
FY 2023 5,568 14,748 20,316 2,812 6,720 9,532
31 March 2024 - 2,259 2,259 - 1,512 1,512
30 June 2024 - 2,433 2,433 - 1,532 1,532
H1 2024 - 4,692 4,692 - 3,044 3,044
The following table summarises copper concentrate production from both the
Company's SART and flotation plants at Gedabek for FY 2023 and the six months
ended 30 June 2024:
Concentrate Copper Gold Silver
production* content* content* content*
(dmt) (tonnes) (ounces) (ounces)
2023
Quarter ended 31 March
SART processing 364 191 26 8,750
Flotation 4,544 665 762 11,095
Total 4,908 856 788 19,845
Quarter ended 30 June
SART processing 272 145 16 10,316
Flotation 5,613 869 479 8,101
Total 5,885 1,014 495 18,417
Quarter ended 30 September
SART processing 85 43 4 2,194
Flotation 1,316 207 151 1,974
Total 1,401 250 155 4,168
Quarter ended 31 December
SART processing 29 18 4 1,264
Flotation - - - -
Total 29 18 4 1,264
2024
Quarter ended 31 March
SART processing 89 54 7 4,893
Flotation - - - -
Total 89 54 7 4,893
Quarter ended 30 June
SART processing 77 46 5 4,809
Flotation - - - -
Total 77 46 5 4,809
Note
* including Government of Azerbaijan's share.
Certain amounts for SART and flotation production may differ to those
previously disclosed due to final reconciliation of production.
The following table summarises total copper concentrate production and sales
for FY 2023 and six months to 30 June 2024. Note that sales of concentrates
are initially recorded at provisional amounts until agreement of final assay:
Concentrate Copper Gold Silver Concentrate
Concentrate
production* content* content* content* sales** sales**
(dmt) (tonnes) (ounces) (ounces) (dmt) ($000)
Quarter ended
31 March 2023 4,908 856 788 19,845 1,147 2,743
30 June 2023 5,885 1,014 495 18,417 5,501 7,678
30 September 2023 1,401 250 155 4,168 2,358 3,066
31 December 2023 29 18 4 1,264 2,186 2,306
FY 2023 12,223 2,138 1,442 43,694 11,192 15,793
31 March 2024 89 54 7 4,893 71 295
30 June 2024 77 46 5 4,809 260 1,002
H1 2024 166 100 12 9,702 331 1,297
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
H1 2024 Financial review
The Company's net debt increased from $10.2 million at 1 January 2024 to $12.1
million at 30 June 2024 as follows:
Q1 2024 Q2 2024
$m $m $m $m
1 Jan / 31 March 2024 (10.2) (10.9)
Revenue 8.6 6.0
VAT refund 1.3 0.6
Interest income 0.2
Operating costs (9.6) (9.7)
Capital expenditure (0.7) (0.8)
Debt servicing (0.5) (0.3)
Trafigura advance - 3.0
Outflow in the quarter (0.7) (1.2)
31 March / 30 June 2024 (10.9) (12.1)
Note the $3 million advance from Trafigura has been treated as a prepayment
and not included in net debt.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DRLSFLFIWELSEEW