Anglo Asian Mining PLC AGM Statement (6603J)
June 30 2017 - 2:00AM
UK Regulatory
TIDMAAZ
RNS Number : 6603J
Anglo Asian Mining PLC
30 June 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector
Mining
30 June 2017
Anglo Asian Mining plc
Annual General Meeting Statement
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, silver and copper producer in Azerbaijan, is holding
its annual general meeting ("AGM") at 10.30 am today at The
Washington Mayfair Hotel, 5 Curzon Street, Mayfair, London W1J 5HE.
At the meeting Reza Vaziri, the Company's CEO, will make the
following statement:
"I am very pleased with the return of the Company to
profitability in 2016, which has been a very significant
achievement, and is evidence of our success over the last several
years to transform its performance. Our full year 2016 results,
announced last month, showed a small increase in total revenue to
$79 million. The all in sustaining cost of production of gold
reduced significantly from $858 per ounce for 2015 to $616 per
ounce for 2016 and as a result the Company recorded a profit before
taxation of $6.8 million. This return to profitability went in
hand-in-hand with excellent cash generation, with an 82 per cent.
increase in operating cash flow before movements in working capital
to $34 million, and net debt reduced by $14 million to $35 million
at the end of 2016.
"Operationally, we are seeing the mineral composition of our ore
evolve over time with an increasing copper content and this has
been reflected in both our processing strategy and production.
Looking firstly at our production in 2016 - the major theme was a
large upswing in copper production, off-setting reduced gold
production, and we expect this trend to continue moving forwards.
We reported full year copper production for 2016 of 1,941 tonnes, a
100 per cent. increase on the previous year. Silver production also
increased 477 per cent. to 165,131 ounces. Production of both
copper and silver was significantly increased by our flotation
plant, which had its first full year of production in 2016. It
produced 6,339 dry metric tonnes of concentrate containing 1,121
tonnes of copper, 4,430 ounces of gold and 122,965 ounces of silver
during 2016. Gold production totalled 65,394 ounces at an average
all in sustaining cost of $616 per ounce and was sold at an average
sales price of $1,253 per ounce - clearly demonstrating our now
very healthy production margin.
"These excellent financial and production results reflect the
ongoing success of our long-term plan of sustainability and cost
reduction. Key components of this strategy for the current year are
the extensive exploration and production optimisation of the main
open pit and the Gadir underground mines and the start of
production of the newly discovered Ugur gold ore body. We are also
testing a new configuration of the flotation and agitation leaching
plants to give us added flexibility in processing. We have
extensive stockpiles of ore which can now be processed whilst
mining is temporarily paused during exploration and production
optimisation. With this in mind, we have declared a production
target for FY 2017 of between 64,000 gold equivalent ounces (GEOs)
and 72,000 GEOs, which is a modest reduction on last year's
production of 72,304 GEOs during this important phase of
exploration and optimisation.
"Finally, I would like to take this opportunity to thank our
shareholders for their continued support throughout the past year
and to express our optimism for the rest of 2017 and into
2018."
**ENDS**
For further information, please visit www.angloasianmining.com
or contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 916
Stephen Westhead plc 894
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Soltan Tagiev SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
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 developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gedabek 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.
Gold production for the year ended 31 December 2016 from Gedabek
totalled 65,394 ounces with 1,941 tonnes of copper also produced.
Gedabek is a polymetallic deposit and its ore has a high copper
content, and as a result the Company produces copper concentrate
from its Sulphidisation, Acidification, Recycling, and Thickening
(SART) plant. Anglo Asian also produces a copper and precious metal
concentrate from its flotation plant, which is processing tailings
from the agitation leach 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 company news service from the London Stock Exchange
END
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