TIDMAAZ
RNS Number : 6176L
Anglo Asian Mining PLC
14 January 2021
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
14 January 2021
Anglo Asian Mining plc
Q4 and Full Year 2020 Production and Operations review
Record revenues over $100 million for FY2020 and cash of $38.8
million at 31 December 2020
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to provide a production, sales and operations review for
its Gedabek gold, copper and silver mining and production contract
area ("Gedabek") in western Azerbaijan for the three months to 31
December 2020 ("Q4 2020") and the year ended 31 December 2020 ("FY
2020").
Note that all references to "$" are to United States
dollars.
Overview
-- Record revenues for FY 2020 in excess of $100 million driven
by higher metal prices in the year
-- Strong cash generation of $38.6 million before the payment of corporation taxes and dividends
o Company achieved debt-free milestone in 2020 with cash
increasing to $38.8 million at the end of December
-- 69,091 gold equivalent ounces ("GEOs") produced during FY
2020 calculated using budgeted metal prices
o Reportable GEOs marginally lower at 67,249 due to the increase
in the market price of gold relative to the market price of copper
during the year
-- Application to confirm a five-year extension to the Gedabek
contract area submitted to the Government of Azerbaijan on 24
November 2020
Anglo Asian CEO Reza Vaziri commented: "The year just ended has
been without precedent and extremely demanding for Anglo Asian, yet
the Company continues to perform and generate returns for its
shareholders. The year commenced with the COVID-19 pandemic
gradually restricting our ability to operate normally. The second
half of the year saw several weeks of conflict with Armenia. Even
as these issues impacted the availability of our personnel and our
procurement of materials, throughout this entire period, the
Company continued to operate with only minor operational
inefficiencies. Despite these significant challenges, we have
produced 69,091 gold equivalent ounces in the year and buoyed by
increased metal prices, we will record revenues of above 100
million dollars.
"The Company is now pursuing several opportunities to grow.
Having delivered updated JORC statements, we will now continue the
exploration of the five priority discoveries at Gedabek with the
aim to fast track mines into production. We have now also submitted
the application to confirm the five-year extension of the Gedabek
contract area concession, which we believe will be routine. We are
also looking at acquiring new concessions in Azerbaijan.
"Very significantly, in partnership with the Government of
Azerbaijan, we will start evaluating additional development of our
licenses in the restored Vejnaly, Soutely and Gyzilbulakh contract
areas as soon as practically possible. Finally, while our
negotiations continue and are taking longer than anticipated, we
are hopeful the issues that have held up the joint venture with
Conroy Gold can be resolved and the agreement completed.
"With our continued operational and financial discipline, the
Company is in a very good position to develop the opportunities it
has been working on over the past several years. With a very strong
balance sheet and available capital, Anglo Asian can take advantage
of the current market to expand its operations, increase its
resources and grow its production. With the discoveries at Gedabek
and impending access to our restored licenses which include the
Vejnali and Soutely mines (the latter being the largest gold mine
in the Caucasus region), we believe the Company will be able to
deliver substantial shareholder value over the coming years."
Production Overview
Q4 2020
-- Total production of 16,819 GEOs (Q4 2019: 21,284 GEOs) at budgeted metal prices
-- Gold production of 13,534 ounces (Q4 2019: 17,907 ounces):
o 13,276 ounces contained within gold doré
o 15 ounces from sulfidisation, acidification, recycling and
thickening ("SART") processing
o 243 ounces from flotation processing
-- Copper production totalled 696 tonnes (Q4 2019: 729 tonnes):
o 196 tonnes from SART processing
o 500 tonnes from flotation processing
-- Silver production totalled 33,027 ounces (Q4 2019: 41,686 ounces):
o 4,614 ounces contained within gold doré
o 21,327 ounces from SART processing
o 7,086 ounces from flotation processing
FY 2020
-- Total production of 69,091 GEOs (FY 2019: 82,795 GEOs) at budgeted metal prices
-- Total reportable production at actual metal prices of 67,249 (FY 2019: 81,399)
-- Gold production of 56,864 ounces (FY 2019: 70,098 ounces)
-- Copper production totalled 2,591 tonnes (FY 2019: 2,210 tonnes)
-- Silver production totalled 122,962 ounces (FY 2019: 159,356 ounces)
Sales
Q4 2020
-- Q4 2020 gold bullion sales of 18,072 ounces at an average of
$1,884 per ounce (Q4 2019 gold bullion sales of 12,509 ounces at an
average of $1,481 per ounce)
-- Q4 2020 copper concentrate shipments to the customer totalled
4,211 dry metric tonnes ("dmt") with a sales value of $6.8 million
(excluding Government of Azerbaijan profit share) (Q4 2019: 3,730
dmt with a sales value of $6.8 million)
FY 2020
-- FY 2020 gold bullion sales of 48,650 ounces at an average of
$1,777 per ounce (FY 2019 gold bullion sales of 53,992 ounces at an
average of $1,410 per ounce)
-- FY 2020 copper concentrate shipments to the customer totaled
11,839 dmt with a sales value of $17.7 million (excluding
Government of Azerbaijan profit share) (FY 2019: 10,281 dmt with a
sales value of $16.7 million)
Company financials
-- Cash and cash equivalents totalled $38.8 million at 31
December 2020 (Net cash, including cash in transit of $21.2 million
at 31 December 2019)
Gedabek - mining, production and sales
The Company mined the following ore in the 12 months to 31
December 2020:
9 months to 3 months to 12 months to
30 September 2020 31 December 2020 31 December 2020
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 889,274 0.95 414,682 0.89 1,303,956 0.94
Ugur - o/pit 505,426 0.95 - - 505,426 0.95
Gadir - u/g 86,793 2.70 38,208 2.17 125,001 2.53
Gosha - u/g 6,024 2.58 - - 6,024 2.58
Gedabek -
u/g - - 16,376 2.37 16,376 2.37
---------- ------------ ---------- ------------ ---------- ------------
Total 1,487,517 1.06 469,266 1.05 1,956,783 1.06
============== ========== ============ ========== ============ ========== ============
Anglo Asian stacked 107,220 tonnes of dry crushed ore on to heap
leach pads with an average gold content of 0.89 grammes per tonne
("g/t") of gold during Q4 2020 (Q3 2020: 168,945 tonnes with an
average gold content of 0.87 g/t of gold). The Company also heap
leached uncrushed Run of Mine ("ROM") ore. During Q4 2020, Anglo
Asian stacked 173,812 tonnes of ROM ore on to heap leach pads with
an average gold content of 0.59 g/t of gold (Q3 2020: 149,031
tonnes with an average gold content of 0.50 g/t of gold).
The Company processed 177,487 dry tonnes of ore with an average
gold content of 1.81 g/t of gold through the agitation leaching
plant in Q4 2020 (Q3 2020: 181,200 dry tonnes with an average gold
content of 2.39 g/t of gold). 114,447 dry tonnes of ore containing
an average copper content of 0.63 per cent. were processed by the
flotation plant in Q4 2020 (Q3 2020: 127,100 dry tonnes of ore
containing an average copper content of 0.58 per cent.).
The Company produced gold doré containing 13,276 ounces of gold
and 4,614 ounces of silver at Gedabek (Q3 2020: 14,945 ounces of
gold and 5,487 ounces of silver) in Q4 2020. During Q4 2020, the
agitation leaching plant produced 9,222 ounces and 3,195 ounces of
gold and silver, respectively, and the heap leach operations
produced 4,054 ounces and 1,419 ounces of gold and silver,
respectively.
SART processing produced 421 dmt of copper concentrate
containing 196 tonnes of copper, 15 ounces of gold and 21,327
ounces of silver in Q4 2020 (Q3 2020: 301 dmt of copper concentrate
containing 165 tonnes of copper, seven ounces of gold and 17,329
ounces of silver).
In Q4 2020, flotation processing produced 2,929 dmt of copper
concentrate containing 500 tonnes of copper, 243 ounces of gold and
7,086 ounces of silver ( Q3 2020, 2,965 dmt of copper concentrate
containing 523 tonnes of copper, 476 ounces of gold and 8,416
ounces of silver).
The Company sold 4,211 dmt of copper concentrate in Q4 2020 for
$6.8 million compared to 2,084 dmt for $3.4 million in Q3 2020 (
excluding Government of Azerbaijan production share).
The following table summarises gold doré production and sales at
Gedabek for FY 2019 and FY 2020:
Gold produced* Silver Gold sales** Gold Sales
(ounces) Produced* (ounces) price
(ounces) ($/ounce)
Quarter ended
31 March 2019 15,547 6,634 13,122 1,306
30 June 2019 16,073 4,773 13,467 1,332
H1 2019 31,620 11,407 26,589 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 53,992 1,410
31 March 2020 15,034 3,852 11,236 1,577
30 June 2020 11,455 3,562 12,743 1,713
H1 2020 26,489 7,414 23,979 1,649
30 Sept 2020 14,945 5,487 6,599 1,947
31 Dec 2020 13,276 4,614 18,072 1,884
H2 2020 28,221 10,101 24,671 1,901
FY 2020 54,710 17,515 48,650 1,777
-------------- -------------- ----------- ------------- ----------
NOTE
* 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
2019 and FY 2020:
Concentrate Copper Gold Silver
production* content* content* content*
(dmt) (tonnes) (ounces) (ounces)
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 Sept
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
2020
Quarter ended 31 March
SART processing 221 114 8 12,895
Flotation 2,773 445 825 17,895
Total 2,994 559 833 30,790
Quarter ended 30 June
SART processing 267 151 7 10,957
Flotation 2,904 497 573 9,542
Total 3,171 648 580 20,499
Quarter ended 30 September
SART processing 301 165 7 17,329
Flotation 2,965 523 476 8,416
Total 3,266 688 483 25,745
Quarter ended 31 December
SART processing 421 196 15 21,327
Flotation 2,929 500 243 7,086
Total 3,350 696 258 28,413
---------------------------- ------------ --------- --------- ---------
* including Government of Azerbaijan's share.
Certain amounts for SART and flotation production may different
to those previously disclosed due to final reconciliation of
production.
The following table summarises total copper concentrate
production and sales at Gedabek for FY 2019 and FY 2020. 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 2019 3,013 513 1,698 44,662 275 625
30 June 2019 2,395 448 1,076 28,285 4,030 6,069
H1 2019 5,408 961 2,774 72,947 4,305 6,694
30 Sept 2019 2,947 520 1,178 28,896 2,246 3,189
31 Dec 2019 3,593 729 1,995 37,806 3,730 6,770
H2 2019 6,540 1,249 3,173 66,702 5,976 9,959
FY 2019 11,948 2,210 5,947 139,649 10,281 16,653
31 March 2020 2,994 559 833 30,790 2,018 2,863
30 June 2020 3,171 648 580 20,499 3,526 4,707
H1 2020 6,165 1,207 1,413 51,289 5,544 7,570
30 Sept 2020 3,266 688 483 25,745 2,084 3,377
31 Dec 2020 3,350 696 258 28,413 4,211 6,763
H2 2020 6,616 1,384 741 54,158 6,295 10,140
FY 2020 12,781 2,591 2,154 105,447 11,839 17,710
--------------- ------------ --------- --------- --------- ------------- ------------------
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
Cash
The Company had cash and cash equivalents at 31 December 2020 of
$38.8 million (Net cash, including cash in transit of $21.2 million
at 31 December 2019).
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
------------------------------ ----------------------
Adam Cowl 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 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.
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.
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