TIDMAAZ
RNS Number : 6296H
Anglo Asian Mining PLC
26 March 2020
26 March 2020
Anglo Asian Mining plc
Operational Update
Company Continues to Maintain Production at Gedabek
Sales of Gold Doré Temporarily Suspended
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan
provides an update on its operations and the impact of the global
health emergency COVID-19 ("Coronavirus"). The Company is
monitoring the situation as it evolves and is implementing
precautionary measures to maintain the safety of its employees and
ensure the sustainability of its business.
Note that all references to "$" are to the United States
Dollar.
Government of Azerbaijan actions to combat the spread of
Coronavirus
The Company is continuing in operation despite the Government of
the Republic of Azerbaijan (the "Government") implementing a series
of restrictions to combat the spread of the Coronavirus. Air travel
to and from Azerbaijan is significantly curtailed and people
entering the country are subject to 14 days compulsory quarantine.
Most of its land borders (including Georgia and Iran) are closed to
people but freight movements are currently continuing. Domestic
travel for people between towns and cities in Azerbaijan is
prohibited with public transport suspended and many shops and
restaurants etc. operating very limited opening hours or
permanently closed.
The Government has curtailed some activities of non-essential
industries and Government departments.
Gedabek and Gosha operations continuing
The operations of Gedabek and Gosha are not included in the
Government restrictions and continue to operate normally. Mining
and production, as well as essential maintenance, are continuing.
The planned raise of the tailings dam wall is also continuing. The
Company is still able to procure necessary supplies from outside of
Azerbaijan such as cyanide and is continuing with its exploration
programme.
Many actions to safeguard the health of its workers have been
carried out. These include:
- An extensive communication programme to educate staff about
all necessary hygiene measures including use of hand sanitisers and
antibacterial sprays, avoidance of social gatherings, avoiding
handshaking and other physical contact;
- Deployment of hand sanitisers and anti-bacterial sprays;
- Access to an on-site doctor 24 hours per day;
- Deep cleaning of office, work areas and key employee's homes;
- Extension of mealtimes, cessation of canteen meals and
provision of take-away food to staff; and
- Redeployment of accommodation at Gosha as a camp for
self-isolation for staff returning to Gedabek.
During this time, the Company is experiencing an impact on the
rotation of staff including management, due to the travel
restrictions. However, actions have been put in place to enable
senior staff to work remotely from home.
Sale and shipment of product
Although production of gold doré is continuing, the Company is
currently unable to ship gold doré to its refiners in Switzerland
due to cessation of air flights. The refiners have also temporarily
suspended operations on the instruction of the Swiss Government.
However, gold doré production through to early March has been
shipped and the sale proceeds received. The Company is actively
looking at other logistical, refining and sale options for gold
doré should the suspension be prolonged.
The Company continues to ship copper concentrate by road.
Financial position of the Company remains strong
The Company's financial position is strong with approximately
$25 million in cash and no debt. The Company is also in discussions
with its banks in Azerbaijan to put in place a stand-by credit
facility of up to $20 million. The purpose of the stand-by credit
facility is to provide additional financial flexibility and ensure
the continuation of the Group's operations during this time of
global economic uncertainty.
Production guidance for the full year ending 31 December
2020
Due to production continuing in Azerbaijan, the Company
currently maintains its production guidance for the year ending 31
December 2020 of between 75,000 to 80,000 gold equivalent
ounces.
Annual results for 2019 and Annual General Meeting
The Company is well advanced in preparing its audited results
for the year ended 31 December 2019. It is currently planning to
announce these in mid-May 2020, as in previous years, and post an
annual report to shareholders around the end of May. The Company
has scheduled an Annual General Meeting at 10:30am on Tuesday, 23
June 2020 at the Washington Hotel in Central London. The Company is
actively monitoring developments regarding the holding of annual
general meetings and looking at alternative arrangements should it
be impossible to convene the meeting.
Summary
In common with many businesses around the world, the Coronavirus
has affected the Company's operations. However, Anglo Asian is
proactively taking all possible measures to safeguard its business
and employees. The Company will update its shareholders on its
operations along with its first quarter 2020 production in
mid-April. However, the situation in Azerbaijan and the rest of the
world is evolving quickly and should any developments further
significantly affect its operations before mid-April, they will be
separately reported.
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.
**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 Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
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 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. 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 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.
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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