TIDMAAZ
RNS Number : 9823U
Anglo Asian Mining PLC
13 April 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 April 2016
Anglo Asian Mining plc
Quarter 1 2016, operations and production update - Gedabek gold,
copper and silver mine, Azerbaijan
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, is
pleased to provide an operations and production update from its
Gedabek gold, copper and silver mine ("Gedabek") in western
Azerbaijan for the three months to 31 March 2016 ("Q1 2016"). Note
that all references to "$" are to United States dollars.
Production overview
-- Gold production for Q1 2016 totalled 14,172 ounces with
13,383 ounces contained within gold doré, 12 ounces from SART
processing and 777 ounces from flotation (Q4 2015: total 17,930
ounces)
-- Copper production for Q1 2016 totalled 432 tonnes, 181 tonnes
from SART processing and 251 tonnes from flotation (Q4 2015: total
335 tonnes)
-- Silver production for Q1 2016 totalled 34,342 ounces with
1,958 ounces contained within gold doré, 7,789 ounces from SART
processing and 24,595 ounces from flotation (Q4 2015: total 17,710
ounces)
-- Gold production target for the year to 31 December 2016 ("FY
2016") is a total of between 73,000 ounces and 77,000 ounces (which
includes approximately 4,000 ounces to 5,000 ounces of production
from the flotation plant)
-- Copper production target for FY 2016 is between 1,700 tonnes
and 2,100 tonnes, comprising between 700 tonnes to 800 tonnes from
SART processing and between 1,000 tonnes to 1,300 tonnes from
flotation
Operational update
-- First full quarter of production from flotation plant - plant
produced 251 tonnes of copper and 777 ounces of gold
-- Gold doré production lower than Q4 2015 due to harder ore
with lower grades encountered and severe winter weather. Second SAG
mill for the agitation leach plant now contracted for and expected
to begin operation in Q3 2016. This will increase amount of ore
that can be processed to offset slower milling of harder ore
-- Additional underground equipment purchased from Atlas Copco
(drill machine, loader and truck) to improve productivity of the
Gadir underground mine
-- New contract signed with Industrial Minerals S.A. for the
sale of copper concentrate produced by the flotation plant
Sales
-- Q1 2016 gold doré sales of 12,058 ounces of gold at an
average of $1,184 per ounce (Q4 2015: 15,759 ounces at an average
of $1,108 per ounce)
-- Q1 2016 copper concentrate shipments to the customer totalled
1,330 dry metric tonnes ("dmt") with a sales value of $2.1m
(excluding Government of Azerbaijan profit share) (Q4 2015: 817
tonnes with a sales value of $1.3 million)
Company financials
-- Net debt, being interest-bearing loans and borrowings, less
cash and cash equivalents, totaled $47.5 million at 31 March 2016
($49.2 million at 31 December 2015)
Anglo Asian CEO Reza Vaziri commented, "Following record gold
production in 2015 when we produced 72,032 ounces of gold, the
first quarter of 2016 has unfortunately seen a slow-down in
production. Ordinarily, the first quarter of the year has always
had lower production due to the difficult winter weather
conditions. However, the harder rock that has been encountered
together with its lower grade has also further lowered production
compared to the previous quarter. To combat this harder rock, we
have contracted for a second SAG mill to be installed in the
agitation leach plant and we expect the SAG mill to be operational
in Q3 2016.
"We are very pleased to report the first full quarter's
production from the flotation plant. We look forward to its
production ramping up in the months ahead. In addition, we have
seen the gold price rising sixteen per cent. in the quarter, its
best performance in thirty years. We look forward to seeing this
positively impact our revenues in quarter two and beyond as we
continue on our path to build a mid-tier gold and copper producer
in Azerbaijan."
Full details
During Q1 2016, the Company mined 344,171 tonnes of ore from its
Gedabek open pit. 17,756 tonnes of ore with an average grade of
7.91 grammes per tonne was mined from its Gadir underground mine.
The Company has recently purchased an MT2010 mine truck, a TD1
underground drill machine and a ST7 Scooptram loader from Atlas
Copco for EUR 1.2 million to improve the productivity of the Gadir
mine. The majority of this equipment is already at site with the
remaining items expected within the next 10 days.
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.
During Q1 2016, Anglo Asian stacked 91,450 tonnes of dry crushed
ore on to heap leach pads with an average gold content of 1.46
grammes per tonne. The Company also heap leached uncrushed (Run of
Mine - "ROM") ore. During Q1 2016, Anglo Asian stacked 114,508
tonnes of ROM ore on to heap leach pads with an average gold
content of 0.88 grammes per tonne.
During the quarter, the Company processed 131,930 tonnes of ore
with an average gold content of 2.93 grammes per tonne through the
agitation leaching plant.
There was a 70 per cent. gold recovery in agitation leaching for
Q1 2016, a decrease from 78 per cent. seen in the previous quarter.
The lower gold recovery was as a result of the lower grade of ore
processed. Gold doré is produced from both heap and agitated leach
intermediate solutions, which are combined for final processing and
also recirculated around the plant, heap leach pads and tailings
dam. Heap leaching is a long term process and recoveries are
therefore only estimates calculated from available metallurgical
statistics.
During Q1 2016, the Company produced gold doré containing 13,383
ounces of gold and 1,958 ounces of silver at Gedabek. The agitation
leach plant produced 8,683 and 1,267 ounces of gold and silver,
respectively, and the heap leach operations produced 4,700 and 691
ounces of gold and silver, respectively. The reduced gold doré
production from agitation leaching was due to the lower amount of
crushed ore feedstock processed by the plant because of the harder
rock encountered, the lower grade of the ore, and the reduced
recoveries.
The following table summarises gold doré production and sales at
Gedabek for FY 2015 and Q1 2016:
Gold produced* Silver Gold sales** Gold Sales
(ounces) Produced* (ounces) price
(ounces) ($/ounce)
Quarter ended
31 March 2015 17,185 597 17,206 1,214
30 June 2015 18,739 900 16,088 1,193
30 Sept 2015 18,158 907 14,871 1,123
31 Dec 2015 17,588 1,858 15,759 1,108
FY 2015 - total 71,670 4,262 63,924 1,161
31 March 2016 13,383 1,958 12,058 1,184
---------------- -------------- ----------- ------------- ----------
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
During Q1 2016, the Company produced copper concentrate from
both its SART and flotation plants as follows:
Concentrate Copper Gold Silver
production* content* content* content*
(dmt) (tonnes) (ounces) (ounces)
SART processing 441 181 12 7,789
Flotation 1,458 251 777 24,595
Total 1,899 432 789 32,384
----------------- ------------ --------- --------- ---------
* including Government of Azerbaijan's share
During Q1 2016, 108,381 dry metric tonnes of agitation leach
plant tailings were processed by the flotation plant. The gross
metal contained within this feed-stock was 3,146 ounce of gold,
64,612 ounces of silver and 570 tonnes of copper.
Anglo Asian has a strategic three year sales partnership in
place with Industrial Minerals S.A. which commenced in May 2014 for
the sale of Anglo Asian copper concentrates from its SART plant. In
March 2016, the Company signed a further contract with Industrial
Minerals S.A. for the sale of copper concentrate produced from its
flotation plant. This contract is for the period 15 March 2016 to
31 December 2018. The contract is on the same terms as the
Company's existing contract with the exception of improved terms
for any penalty due to the concentrate containing zinc. Concentrate
can be sold containing up to 12 per cent. zinc subject to a sliding
scale of penalties for a zinc content between 1 to 12 per cent.
The following table summarises copper concentrate production and
sales from SART and flotation processing (which commenced in Q4
2015) at Gedabek for FY 2015 and Q1 2016:
Concentrate Copper Gold Silver Concentrate Concentrate
production* content* content* content* sales** sales**
(dmt) (tonnes) (ounces) (ounces) (dmt) ($000)
Quarter ended
31 March 2015 298 182 8 1,354 234 660
30 June 2015 391 236 6 3,627 372 1,076
30 Sept 2015 406 216 7 3,532 279 661
31 Dec 2015 955 335 341 15,851 817 1,285
FY 2015 -
total 2,050 969 362 24,364 1,702 3,682
31 March 2016 1,899 432 789 32,384 1,330 2,137
(MORE TO FOLLOW) Dow Jones Newswires
April 13, 2016 02:00 ET (06:00 GMT)
--------------- ------------ --------- --------- --------- ------------- --------------
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
The Company had net debt at 31 March 2016 of $47.5 million, a
reduction of $1.7 million since 31 December 2015. The net debt at
31 March 2016 was as follows:
$m
Amsterdam Trade Bank - Agitation plant loan 24.7
International Bank of Azerbaijan - loan 9.7
International Bank of Azerbaijan - credit line 2.9
Atlas Copco equipment finance loan 1.5
YapiKredit 1.2
Pasha Bank 4.6
Director 3.9
Total Loans 48.5
Cash on hand and at bank (1.0)
Net debt 47.5
**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
-------------------- ------------------------------ ----------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
-------------------- ------------------------------ ----------------------
Laura Harrison SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
-------------------- ------------------------------ ----------------------
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
-------------------- ------------------------------ ----------------------
Susie Geliher St Brides Partners Ltd Tel: +44 (0) 20 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 is also mines high grade ore from
the 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 2015 from Gedabek
totaled 72,032 ounces with 969 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 commenced production in
the last quarter of 2015. This is initially 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
MSCFMGMDKZFGVZM
(END) Dow Jones Newswires
April 13, 2016 02:00 ET (06:00 GMT)
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