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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Anglo Asian Mining Plc | LSE:AAZ | London | Ordinary Share | GB00B0C18177 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.50 | 2.44% | 63.00 | 60.00 | 66.00 | 63.00 | 61.50 | 61.50 | 43,986 | 16:11:49 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Miscellaneous Metal Ores,nec | 84.72M | 3.66M | 0.0320 | 19.69 | 71.97M |
From Apr 2019 to Apr 2024
TIDMAAZ
RNS Number : 6572Z
Anglo Asian Mining PLC
14 January 2020
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
14 January 2020
Anglo Asian Mining plc
Quarter 4 and Full Year 2019 Production and Operations review
Full year production of 82,795 gold equivalent ounces calculated at budgeted prices and net cash of $21.2 million at 31 December 2019
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused on Azerbaijan, is pleased to provide a production, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the three months to 31 December 2019 ("Q4 2019") and the year ended 31 December 2019 ("FY 2019").
Note that all references to "$" are to United States dollars.
Overview
-- Record revenues anticipated for FY 2019 in excess of $90.0 million driven by sustained gold and increased copper production and strong commodity prices
-- Strong cash generation of $31.3 million before payment of corporation taxes and dividends driven by strong sales and continued operational efficiencies as one of the lowest cash cost gold producers
o Net cash increased to $21.1 million at the end of December 2019 from $6.1 million at the beginning of the year
o Company will make its final debt repayment in early February 2020 delivering on its strategic plan to be debt free
-- 82,795 gold equivalent ounces ("GEOs") produced during FY 2019 calculated using budgeted metal prices
o Reportable GEOs marginally lower at 81,399 due to the increase in the market price of gold relative to the market price of copper during the year
Anglo Asian CEO Reza Vaziri commented:
"We have had another strong year, delivering production in line with expectations and also making good progress with our exploration programme. We report our production in gold equivalent ounces which have reduced due to the increase in the market price of gold relative to the market price of copper during the year. Our production calculated as gold equivalent ounces using our budgeted metal prices was 82,795 ounces and within our original production forecast.
"The Company's financial performance continues to be exceptional. We have increased net cash in 2019 by $15.1 million, notwithstanding paying dividends of $8.7 million and corporation taxes of $7.5 million in the year. The Company will achieve the significant milestone of becoming debt free early next month when the final installment of the refinancing loan is repaid. This strong cash generation will allow the Company to continue to enhance our announced dividend policy.
"The Company is in a strong operational position and robust financial health as we move into 2020. I look forward to updating you on the progress of our exploration programme which we anticipate releasing within quarter one and other activities which the Company will be carrying out during the rest of the year."
Production Overview
Q4 2019
-- Three per cent. year on year ("y-o-y") decrease in total production to 21,284 GEOs (Q4 2018: 21,945 ounces)
-- Copper production totalled 729 tonnes (Q4 2018: 588 tonnes)
o 113 tonnes from SART processing
o 616 tonnes from flotation
-- Gold production totalled 17,907 ounces (Q4 2018: 18,209 ounces):
o 15,912 ounces contained within gold doré
o 16 ounces from SART processing
o 1,979 ounces from flotation
-- Silver production totalled 41,686 ounces (Q4 2018: 65,822 ounces):
o 3,880 ounces contained within gold doré
o 11,159 ounces from SART processing
o 26,647 ounces from flotation
FY 2019
-- Total production of 82,795 GEOs (FY 2018: 83,736 GEOs) at budgeted metal prices (81,399 GEOs at actual metal prices)
-- 34 per cent y-o-y increase in copper production to 2,210 tonnes (FY 2018: 1,645 tonnes) -- Four per cent. y-o-y decrease in gold production to 70,098 ounces (FY 2018: 72,798 ounces) -- Silver production totalled 159,356 ounces (FY 2018: 210,184 ounces)
Sales
Q4 2019
-- Q4 2019 gold bullion sales of 12,509 ounces at an average of $1,481 per ounce (Q3 2019 gold bullion sales of 14,894 ounces at an average of $1,513 per ounce)
-- Q4 2019 copper concentrate shipments to the customer totalled 3,723 dry metric tonnes ("dmt") with a sales value of $6.9 million (excluding Government of Azerbaijan profit share) (Q3 2019: 2,255 dmt with a sales value of $3.4 million)
FY 2019
-- FY 2019 gold bullion sales of 54,061 ounces at an average of $1,410 per ounce (FY 2018 gold bullion sales of 59,481 ounces at an average of $1,265 per ounce)
-- FY 2019 copper concentrate shipments to the customer totaled 10,264 dmt with a sales value of $17.9 million (excluding Government of Azerbaijan profit share) (FY 2018: 7,675 dmt with a sales value of $15.4 million)
Company financials
-- Net cash, being cash and cash equivalents less interest-bearing loans and borrowings, totalled $21.2 million at 31 December 2019 (Net cash of $19.1 million at 30 September 2019 and $6.1 million at 1 January 2019)
Gedabek - mining, production and sales
The Company mined the following ore in the year ended 31 December 2019:
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30 September 2019 31 December 2019 31 December 2019
Average Average Average
Mine Ore mined gold grade Ore mined gold grade Ore mined gold grade
(tonnes) (g/t) (tonnes) (g/t) (tonnes) (g/t)
---------- ------------ ---------- ------------ ---------- ------------
Open pit 1,140,657 0.72 334,621 0.78 1,475,278 0.73
Ugur - o/pit 906,499 1.35 376,938 1.02 1,283,437 1.24
Gadir - u/g 127,028 2.78 20,288 2.43 147,316 2.73
Gosha - u/g - - 7,235 2.81 7,235 2.81
---------- ------------ ---------- ------------ ---------- ------------
Total 2,174,184 1.10 739,082 0.97 2,913,266 1.06
============== ========== ============ ========== ============ ========== ============
Note that there may have been some minor changes to the previously reported figures following reconciliation of ore stockpiles.
As previously reported, low grade ore (less than 1.5 grammes per tonne of gold) is being treated by heap leaching, whilst higher grade ore (more than 1.5 grammes per tonne of gold) is being processed through the agitation leaching plant.
Anglo Asian stacked 98,280 tonnes of dry crushed ore onto heap leach pads with an average gold content of 0.86 grammes per tonne during Q4 2019 (Q3 2019: 148,269 tonnes with an average gold content of 0.93 grammes per tonne). The Company also heap leached uncrushed Run of Mine ("ROM") ore. During Q4 2019, Anglo Asian stacked 288,583 tonnes of ROM ore onto heap leach pads with an average gold content of 0.49 grammes per tonne (Q3 2019: 261,414 tonnes with an average gold content of 0.46 grammes per tonne).
The Company processed, during Q4 2019, 181,710 dry tonnes of ore with an average gold content of 2.44 grammes per tonne through the agitation leaching plant (Q3 2019: 192,097 dry tonnes with an average gold content of 2.25 grammes per tonne). 125,205 dry tonnes of ore containing an average copper content of 0.63 per cent. were processed by the flotation plant in Q4 2019 (Q3 2019: 127,762 dry tonnes of ore containing an average copper content of 0.55 per cent).
During Q4 2019, the Company produced gold doré containing 15,912 ounces of gold and 3,880 ounces of silver at Gedabek (Q3 2019: 16,619 ounces of gold and 4,420 ounces of silver). During Q4 2019, the agitation leaching plant produced 12,647 and 3,037 ounces of gold and silver, respectively, and the heap leach operations produced 3,265 and 843 ounces of gold and silver, respectively.
SART processing in Q4 2019 produced 165 dmt of copper concentrate containing 113 tonnes of copper and 16 ounces of gold (Q3 2019: 154 dmt of copper concentrate containing 70 tonnes of copper and 10 ounces of gold). During FY 2019 SART produced 311 tonnes of copper and 45 ounces of gold compared to FY 2018 production of 399 tonnes of copper and 32 ounces of gold.
Flotation processing in Q4 2019 produced 3,354 dmt of copper concentrate containing 616 tonnes of copper, 1,979 ounces of gold and 26,647 ounces of silver (Q3 2019: 2,793 dmt of copper concentrate containing 450 tonnes of copper, 1,168 ounces of gold and 17,142 ounces of silver).
The following table summarises gold doré production and sales at Gedabek for FY 2018 and FY 2019:
Gold produced* Silver Gold sales** Gold Sales
(ounces) Produced* (ounces) price
(ounces) ($/ounce)
Quarter ended
31 March 2018 15,750 7,110 14,956 1,328
30 June 2018 15,537 6,014 10,822 1,307
H1 2018 31,287 13,124 25,778 1,319
30 Sept 2018 18,885 7,416 18,637 1,216
31 Dec 2018 15,444 5,646 15,066 1,231
H2 2018 34,329 13,062 33,703 1,223
FY 2018 65,616 26,186 59,481 1,265
31 March 2019 15,547 6,634 13,191 1,306
30 June 2019 16,073 4,773 13,467 1,332
H1 2019 31,620 11,407 26,658 1,319
30 Sept 2019 16,619 4,420 14,894 1,513
31 Dec 2019 15,912 3,880 12,509 1,481
H2 2019 32,531 8,300 27,403 1,498 FY 2019 64,151 19,707 54,061 1,410 -------------- -------------- ----------- ------------- ----------
Note that some of the figures in the above table may differ from previously reported due to agreement of final assay.
* including Government of Azerbaijan's share.
** excludes Government of Azerbaijan's share.
The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2018 and FY 2019:
Concentrate Copper Gold Silver
production* content* content* content*
2018 (dmt) (tonnes) (ounces) (ounces)
Quarter ended 31 March
SART processing 223 114 6 22,118
Flotation 819 141 735 11,587
Total 1,042 255 741 33,705
Quarter ended 30 June
SART processing 260 137 6 21,800
Flotation 1,136 195 1,226 16,387
Total 1,396 332 1,232 38,187
Quarter ended 30 September
SART processing 162 81 7 17,357
Flotation 2,501 389 2,437 34,573
Total 2,663 470 2,444 51,930
Quarter ended 31 December
SART processing 109 67 13 14,229
Flotation 3,557 521 2,752 45,947
Total 3,666 588 2,765 60,176
2019
Quarter ended 31 March
SART processing 142 63 11 16,201
Flotation 2,871 450 1,687 28,461
Total 3,013 513 1,698 44,662
Quarter ended 30 June
SART processing 143 65 8 12,794
Flotation 2,252 383 1,068 15,491
Total 2,395 448 1,076 28,285
Quarter ended 30 September
SART processing 154 70 10 11,754
Flotation 2,793 450 1,168 17,142
Total 2,947 520 1,178 28,896
Quarter ended 31 December
SART processing 165 113 16 11,159
Flotation 3,354 616 1,979 26,647
Total 3,519 729 1,995 37,806
------------------------------ ------------ --------- --------- ---------
Certain amounts for flotation production may different to those previously disclosed due to final reconciliation of production.
* including Government of Azerbaijan's share.
The following table summarises total copper concentrate production and sales at Gedabek for FY 2018 and FY 2019. 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 2018 1,042 255 741 33,705 608 1,715
30 June 2018 1,396 332 1,232 38,187 1,736 4,221
H1 2018 2,438 587 1,973 71,892 2,344 5,936
30 Sept 2018 2,663 470 2,444 51,930 1,557 3,368
31 Dec 2018 3,666 588 2,765 60,176 3,774 6,131
H2 2018 6,329 1,058 5,209 112,106 5,331 9,499
FY 2018 8,767 1,645 7,182 183,998 7,675 15,435
31 March 2019 3,013 513 1,698 44,662 279 718
30 June 2019 2,395 448 1,076 28,285 4,007 6,771
H1 2019 5,408 961 2,774 72,947 4,286 7,492
30 Sept 2019 2,947 520 1,178 28,896 2,255 3,438
31 Dec 2019 3,519 729 1,995 37,806 3,723 6,931
H2 2019 6,466 1,249 3,173 66,702 5,978 10,369
FY 2019 11,874 2,210 5,947 139,649 10,264 17,861
* including Government of Azerbaijan's share.
** excludes Government of Azerbaijan's share.
FY 2019 production expressed as gold equivalent ounces
The Company calculates the gold equivalent of copper and silver by multiplying the quantity of the metal by its price and then dividing by the price of gold. This is done at the following prices:
For calculation of forecast production: Budget prices set prior to the start of the financial year.
For calculation of actual production: Actual market prices at the time of production.
The budgeted prices of gold, silver and copper and their market prices at the start and end of 2019 together with their corresponding gold equivalent ounces are as follows:
Price of metal Gold equivalent ounces of metal
Metal Budget 1 January 31 December Budget 1 January 31 December
2019 2019 2019 2019
$ Ounces
$ $ Ounces Ounces
------- --------- ----------- ------------
Gold 1,250 1,283 1,517 1.000 1.000 1.000
------- ---------- ------------ --------- ----------- ------------
Silver 15.00 15.51 17.85 0.012 0.012 0.012
------- ---------- ------------ --------- ----------- ------------
Copper 6,100 5,965 6,174 4.880 4.649 4.070
------- ---------- ------------ --------- ----------- ------------
The increase in the market price of gold relative to the market price of copper throughout the year has resulted in the steady decrease of one tonne of copper expressed as gold equivalent ounces from 4.88 ounces used for the budget to 4.07 ounces at 31 December 2019.
Net cash
The Company had net cash at 31 December 2019 of $21.2 million, an increase in net cash of $2.1 million from $19.1 million at 30 September 2019 and an increase of $15.1 million from $6.1 million at 1 January 2019
$m
Cash at bank and on hand 22.9
Pasha Bank refinancing loan (1.7)
-----
Net cash 21.2
-----
The Company made payments of $0.5 million in Q4 2019 in respect of corporation tax in Azerbaijan (FY 2019: $7.5 million). The Company paid an interim dividend in Q4 2019 in respect of the financial year 2019 of $4.1 million (FY 2019: total dividends paid of $8.7 million).
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 until the release of this announcement.
**S**
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 Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
------------------------------ ----------------------
Camilla Horsfall Blytheweigh Financial Tel: +44 (0) 20 7138
3224
------------------------------ ----------------------
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 kilometer 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, In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. 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 83,736 gold equivalent ounces ('GEOs') for the year ended 31 December 2018. 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.
Anglo Asian is also actively seeking 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.
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 or visit www.rns.com.
END
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January 14, 2020 02:00 ET (07:00 GMT)
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