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Quarter 4 and Full Year 2015, operations and production update – Gedabek gold, copper and silver mine, Azerbaijan
Anglo Asian Mining plc, the AIM listed gold, copper and silver producer focused in Azerbaijan, has provided an operations and production update from its Gedabek gold, copper and silver mine in western Azerbaijan for the three months to 31 December 2015 and the year ended 31 December 2015. Note that all references to “$” are to United States dollars.
Production overview
· Gold production for Q4 2015 totalled 17,930 ounces with 12,996 ounces from the agitation leaching plant, 4,593 ounces from heap leach operations, 6 ounces from SART processing and 335 ounces from flotation (Q3 2015: total 18,164 ounces)
· Copper production for Q4 2015 totalled 335 tonnes, 205 tonnes from SART processing and 130 tonnes from flotation (Q3 2015: 216 tonnes)
· Silver production for Q4 2015 totalled 17,710 ounces with 1,373 ounces from the agitation leaching plant, 485 ounces from heap leaching operations, 6,589 ounces from SART processing and 9,263 ounces from flotation (Q3 2015: total 4,439 ounces)
· Anglo Asian’s FY 2015 production was as follows:
o Gold: 72,032 ounces, a 19 per cent. increase over FY 2014 production of 60,285 ounces
o Copper: 969 tonnes of copper, a 24 per cent. increase over FY 2014 production of 784 tonnes
o Silver: 28,626 ounces, an 8 per cent. decrease over FY 2014 production of 31,177 ounces
Sales overview
· Q4 2015 gold doré sales of 15,759 ounces at an average of $1,108 per ounce – FY 2015 gold doré sales of 63,924 ounces at an average of $1,161 per ounce
· Q4 2015 SART copper concentrate sales totalled 425 dry metric tonnes (“dmt”), containing 235 tonnes of copper – FY 2015 copper concentrate sales of 1,310 dmt generating $3.3 million in sale proceeds
· Q4/FY 2015 flotation copper concentrate sales of 392 dmt generating $0.6 million in sale proceeds
Operational update:
· Flotation plant commenced production in Q4 2015 with production in the quarter of 578 dmt of copper concentrate containing 130 tonnes of copper and 335 and 9,263 ounces of gold and silver respectively
· 28,819 tonnes of ore with average gold content of 7.71 grammes per tonne from the Gadir underground mine was processed by the agitation leach plant in Q4 2015. For FY 2015, 37,880 tonnes with average gold content of 7.98 grammes per tonne was processed
Company financials:
· Net debt, being interest-bearing loans and borrowings less cash and cash equivalents, totaled $49.2 million at 31 December 2015 ($52.4 million at 31 December 2014)
· Loan from Reza Vaziri extended to 8 July 2016 with all other terms of the loan remaining the same
Anglo Asian CEO Reza Vaziri commented, “This has been a significant year of growth for Anglo Asian at our flagship Gedabek mine in Azerbaijan. Gold production was the highest recorded and we met our production target set at the beginning of 2015. Gold production in the year increased 19 per cent. to 72,032 ounces and copper production increased 24 per cent. to 969 tonnes. With production at Gedabek increasing, the successful launch of our flotation plant in Q3 2015 and our continuing plant optimization to improve efficiencies and cost controls, I believe we have delivered on our turnaround strategy this year to return Anglo Asian to profitability. I look forward to reporting on our developments during the course of 2016 as we continue our momentum of establishing Anglo Asian as a leading mid-tier gold and copper producer in Caucasia.”
Gedabek is a polymetallic deposit from which Anglo Asian produces gold, copper and silver from its open pit mining operation and its co-located Gadir underground mine. The Company also transports ore from its Gosha underground mine and processes it at Gedabek which is approximately 50 kilometres away. The Company produces gold doré from heap and agitation leaching. Sulphidisation, Acidification, Recycling, and Thickening and flotation are used to produce copper and precious metal in the form of copper concentrates.
During Q4 2015, the Company produced 17,930 ounces of gold at Gedabek; 12,996 ounces from the agitation leach plant, 4,593 ounces from heap leach operations, 6 ounces from SART processing and 335 ounces from flotation. Anglo Asian completed gold doré sales of 15,759 ounces of gold at an average of $1,108 per ounce. For FY 2015, the Company produced 72,032 ounces of gold at Gedabek which was a 19 per cent. increase compared to the total gold production for FY 2014. Of the gold production in FY 2015, 48,226 ounces was from the agitation leach plant, 23,444 ounces was from heap leach operations, 27 ounces was from SART processing and 335 ounces was from flotation. For FY 2015, Anglo Asian completed gold doré sales of 63,924 ounces of gold at an average of $1,161 per ounce.
During Q4 2015, the Company produced 17,710 ounces of silver at Gedabek; 1,373 ounces from the agitation leaching plant, 485 ounces from heap leaching operations, 6,589 ounces from SART and 9,263 ounces from flotation. FY 2015 silver production totalled 28,626 ounces; with 2,935 ounces from the agitation leaching plant, 1,326 ounces from heap leaching operations, 15,102 ounces from SART and 9,263 ounces from flotation.
The Company’s SART plant has been performing well producing a copper/silver sulphide concentrate and for Q4 2015 contained copper in the SART concentrate totalled 205 tonnes. FY 2015 SART copper production totalled 839 tonnes. Anglo Asian has a strategic three year sales partnership in place with Industrial Minerals (SA) which commenced in May 2014 for the sale of Anglo Asian copper concentrates. Sales of copper concentrate produced by SART in Q4 2015 totalled 425 dmt. FY 2015 sales of SART concentrate totalled 1,310 dmt which realised sales proceeds of $3.3 million.
The Company’s new flotation plant to increase copper production at Gebabek was commissioned in Q3 2015 and began commercial production during Q4 2015. For Q4/FY 2015, 578 dmt of copper concentrate was produced containing 130 tonnes of copper, 335 ounces of gold and 9,263 ounces of silver. 392 dmt were shipped and sold during Q4 2015 containing 88 tonnes of copper, 239 ounces of gold and 6,381 ounces of silver. These shipments had a sales value of $0.6 million.
