TIDMAAZ
RNS Number : 4018M
Anglo Asian Mining PLC
13 October 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 October 2016
Anglo Asian Mining plc
Q3 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 30 September 2016 ("Q3 2016").
Note that all references to "$" are to United States dollars.
Production overview
-- Gold production for Q3 2016 totalled 16,497 ounces - 15,370
ounces contained within gold doré, 4 ounces from SART processing
and 1,123 ounces from flotation (Q2 2016: total 19,375 ounces)
-- Copper production for Q3 2016 totalled 485 tonnes - 225
tonnes from SART processing and 260 tonnes from flotation (Q2 2016:
total 497 tonnes)
-- Silver production for Q3 2016 totalled 33,899 ounces - 2,502
ounces contained within gold doré, 7,291 ounces from SART
processing and 24,106 ounces from flotation (Q2 2016: total 52,214
ounces)
-- Cumulative total production in the nine months to 30 September 2016 (YTDQ3 2016) as follows:
o Gold - 49,874 ounces (YTDQ3 2015: 54,103 ounces)
o Silver - 114,915 ounces (YTDQ3 2015: 10,916 ounces)
o Copper - 1,363 tonnes (YTDQ3 2015: 634 tonnes)
-- Gold production target for the year to 31 December 2016 ("FY
2016") remains a total of between 69,000 ounces and 71,000
ounces
-- Copper production target for FY 2016 is between 1,700 tonnes and 2,100 tonnes
Operational update
-- New Semi-Autogenous Grinding ("SAG") mill now operational -
ore milled by the agitation leaching plant in Q3 2016 increased to
160,211 tonnes from 151,649 tonnes in Q2 2016 partially offsetting
lower ore gold grade
-- Work on construction of electrical sub-station and associated
overhead power lines now substantially complete
-- Water treatment plant and water evaporation initiatives
proceeding to plan with equipment now being manufactured
-- Stockpiled sulphide ore used for feedstock for the flotation plant in Q3 2016
Sales
-- Q3 2016 gold bullion sales of 12,567 ounces at an average of
$1,332 per ounce (Q2 2016 gold bullion sales of 15,661 ounces at an
average of $1,265 per ounce)
-- Q3 2016 copper concentrate shipments to the customer totalled
1,702 dry metric tonnes ("dmt") with a sales value of $3.5 million
(excluding Government of Azerbaijan profit share) (Q2 2016: 1,582
tonnes with a sales value of $3.0 million)
Company financials
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totalled $37.7 million at 30 September
2016 ($40.8 million at 30 June 2016)
-- 18,000 ounces of gold bullion sales in H2 2016 were hedged at
no cost with a minimum and maximum sales price per ounce of $1,200
and $1,426 respectively. 10,500 ounces of these hedged sales have
now expired at no gain or loss to the Company
Anglo Asian CEO Reza Vaziri said "Anglo Asian continues to make
solid progress in developing its mining operations. Whilst
production during the period was impacted due to slightly later
than anticipated commissioning of the second SAG mill, total tonnes
milled during the quarter increased which partially offset the
lower gold grades encountered. The utilisation of stockpiled
sulphide ore as feedstock for the flotation plant is another
positive development for Anglo Asian. The Company continues with
its cost reduction and sustainability initiatives, and the
connection of the Gedabek site to the national power grid by the
end of next month will be another milestone."
Gedabek - mining, production and sales
During Q3 2016, the Company mined 409,572 tonnes of ore from its
Gedabek open pit (Q2 2016: 491,210 tonnes) and 27,582 tonnes of ore
with an average content of 5.13 grammes per tonne from its Gadir
underground mine (Q2 2016: 37,732 tonnes average grade content of
6.43 grammes per tonne).
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 Q3 2016, Anglo Asian stacked 92,437 tonnes of dry crushed
ore on to heap leach pads with an average gold content of 1.21
grammes per tonne (Q2 2016: 110,202 tonnes with an average gold
content of 1.36 grammes per tonne). The Company also heap leached
uncrushed Run of Mine ("ROM") ore. During Q3 2016, Anglo Asian
stacked 190,185 tonnes of ROM ore on to heap leach pads with an
average gold content of 0.80 grammes per tonne (Q2 2016: 263,432
tonnes with an average gold content of 0.76 grammes per tonne).
During Q3 2016, the Company processed 160,211 tonnes of ore with
an average gold content of 2.50 grammes per tonne through the
agitation leaching plant (Q2 2016: 151,649 tonnes with an average
gold content of 3.59 grammes per tonne).
There was a 77 per cent. gold recovery in agitation leaching for
Q3 2016 (Q2 2016: 74 per cent.). Gold doré is produced from both
heap and agitated leach intermediate solutions, which are combined
for final processing and also re-circulated 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 Q3 2016, the Company produced gold doré containing 15,370
ounces of gold and 2,502 ounces of silver at Gedabek (Q2 2016:
17,926 ounces of gold and 2,983 ounces of silver). During Q3 2016,
the agitation leaching plant produced 9,908 and 1,692 ounces of
gold and silver, respectively, and the heap leach operations
produced 5,462 and 810 ounces of gold and silver, respectively.
During Q3 2016, 134,770 dmt of agitation leaching plant tailings
were processed by the flotation plant. The gross metal contained
within this feed-stock was 3,498 ounces of gold, 75,017 ounces of
silver and 514 tonnes of copper. Copper concentrate of 1,426 dmt
was produced containing 260 tonnes of copper, 1,123 ounces of gold
and 24,106 ounces of silver. SART processing produced 418 dmt of
copper concentrate containing 225 tonnes of copper, 4 ounces of
gold and 7,291 ounces of silver.
The following table summarises gold doré production and sales at
Gedabek for FY 2015 and Q1 through Q3 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
H1 2015 35,924 1,497 33,294 1,204
30 Sept 2015 18,158 907 14,871 1,123
31 Dec 2015 17,588 1,858 15,759 1,108
H2 2015 35,746 2,765 30,630 1,115
FY 2015 71,670 4,262 63,924 1,161
31 March 2016 13,383 1,958 12,058 1,184
30 June 2016 17,926 2,983 15,661 1,265
H1 2016 31,309 4,941 27,719 1,230
30 Sept 2016 15,370 2,502 12,567 1,332
-------------- -------------- ----------- ------------- ----------
* including Government of Azerbaijan's share.
** excluding Government of Azerbaijan's share.
The following table summarises copper concentrate production
from both its SART and flotation plants for Q1 through Q3 2016:
Concentrate Copper Gold Silver
production* content* content* content*
2016 (dmt) (tonnes) (ounces) (ounces)
Quarter ended 31
March
SART processing 363 181 12 7,789
Flotation** 1,458 200 607 19,055
Total 1,821 381 619 26,844
Quarter ended 30
June
SART processing 373 195 4 10,047
Flotation** 1,988 302 1,445 39,184
Total 2,361 497 1,449 49,231
Quarter ended 30
Sept
SART processing 418 225 4 7,291
Flotation 1,426 260 1,123 24,106
Total 1,844 485 1,127 31,397
------------------ ------------ --------- --------- ---------
* including Government of Azerbaijan's share.
** certain figures for flotation production are different to
those previously disclosed due to final reconciliation of
production and sales.
The following table summarises total copper concentrate
production and sales at Gedabek for FY 2015 and Q1 through Q3 2016.
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
2015 298 182 8 1,354 234 660
30 June 2015 391 236 6 3,627 372 1,076
H1 2015 689 418 14 4,981 606 1,736
30 Sept 2015 406 216 7 3,532 279 661
31 Dec 2015 955 335 341 15,851 817 1,285
H2 2015 1,361 551 348 19,383 1,096 1,946
FY 2015 2,050 969 362 24,364 1,702 3,682
31 March
2016*** 1,821 381 619 26,844 1,330 2,137
30 June 2016*** 2,361 497 1,449 49,231 1,582 3,019
H1 2016 4,182 878 2,068 76,075 2,912 5,156
30 Sept 2016 1,844 485 1,127 31,397 1,702 3,467
----------------- ------------ --------- --------- --------- ------------- --------------
* including Government of Azerbaijan's share.
** excluding Government of Azerbaijan's share.
*** certain figures are different to those previously disclosed
due to final reconciliation of concentrate production and
sales.
Gedabek - operational update
Work on constructing the electrical sub-station and associated
overhead power lines is substantially complete. The two
transformers and ancillary power equipment have been installed at
the Gedabek site and the pylons and overhead cables erected. It is
expected that the site will be connected to the national
electricity grid by the end of November.
Stockpiled sulphide ore has now been used as feedstock for the
flotation plant. The ore was crushed and then milled by the
flotation plant before treatment. From 1 September to 10 October,
4,600 tonnes of ore grading 0.8 per cent. copper and 1.5 grammes
per tonne of gold was treated by the flotation plant.
The water treatment plant is now being manufactured by the
supplier and is expected to be installed at site at the beginning
of Q2 2017 with a target start-up date of end April 2017. The water
evaporation equipment is expected to be received and installed by
the end of 2016.
Net debt
The Company had net debt at 30 September 2016 of $37.7 million,
a reduction of $11.3 million since 31 December 2015.
$m
Amsterdam Trade Bank - Agitation plant
loan 19.7
International Bank of Azerbaijan - loan 8.2
International Bank of Azerbaijan - letter 0.5
of credit financing
Atlas Copco equipment finance loan 1.0
YapiKredit 0.9
Pasha Bank 4.2
Reza Vaziri - director's loan 3.9
-----
Total Loans 38.4
Cash on hand and at bank (0.7)
-----
Net debt 37.7
-----
**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
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Laura Harrison 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 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
totalled 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
MSCBLBDGIXBBGLD
(END) Dow Jones Newswires
October 13, 2016 02:00 ET (06:00 GMT)
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Aug 2024 to Sep 2024
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Sep 2023 to Sep 2024