TIDMAAZ
RNS Number : 4850T
Anglo Asian Mining PLC
13 October 2017
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
13 October 2017
Anglo Asian Mining plc
Q3 2017 - 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 a production update from its Gedabek gold,
copper and silver mine ("Gedabek") in western Azerbaijan for the
three months to 30 September 2017 ("Q3 2017"). Note that all
references to "$" are to United States dollars.
Production overview
-- 19 per cent. increase in gold production to 14,468 ounces as
production begins to benefit from the Ugur open pit following
commencement of mining in September 2017
-- Gold production for Q3 2017 of 14,468 ounces was 12,221
ounces contained within gold doré, 4 ounces from SART processing
and 2,243 ounces from flotation (Q2 2017: total 12,140 ounces)
-- Copper production for Q3 2017 totalled 550 tonnes - 165
tonnes from SART processing and 385 tonnes from flotation (Q2 2017:
total 716 tonnes)
-- Silver production for Q3 2017 totalled 40,288 ounces - 4,381
ounces contained within gold doré, 9,097 ounces from SART
processing and 26,810 ounces from flotation (Q2 2017: total 45,718
ounces)
-- Cumulative total production in the nine months to 30 September 2017 (YTDQ3 2017) as follows:
-- Gold - 37,686 ounces (YTDQ3 2016: 49,911 ounces)
-- Silver - 125,375 ounces (YTDQ3 2016: 114,915 ounces)
-- Copper - 1,872 tonnes (YTDQ3 2016: 1,363 tonnes)
-- Gold equivalent ounces - 48,276 ounces (YTDQ3 2016: 54,924 ounces)
-- Target production for the 12 months to 31 December 2017
expressed as gold equivalent ounces remains at between 64,000 and
72,000 ounces compared to FY 2016 actual total production of 72,304
gold equivalent ounces
Sales
-- Q3 2017 gold bullion sales of 9,287 ounces at an average of
$1,286 per ounce (Q2 2017 gold bullion sales of 7,406 ounces at an
average of $1,258 per ounce)
-- Q3 2017 copper concentrate shipments to the customer totalled
2,905 dry metric tonnes ("dmt") with a sales value of $5.5 million
(excluding Government of Azerbaijan profit share) (Q2 2017: 3,166
tonnes with a sales value of $6.1 million)
Company financials
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totalled $25.2 million at 30 September
2017 ($29.0 million at 30 June 2017)
Anglo Asian CEO Reza Vaziri commented: "This has been an
excellent quarter for Anglo Asian as the benefits of the strategic
review earlier in the year are now being realised. The commencement
of mining from Ugur in September is already having a very positive
influence with gold production rising by over 2,300 ounces from the
previous quarter. Anglo Asian expects a strong fourth quarter and
finish to 2017 and I look forward to updating our shareholders on
our progress."
Gedabek - mining, production and sales
The Company mined the following ore in the nine months to 30
September 2017:
3 months to 9 months to
6 months to 30 September 30 September
30 June 2017 2017 2017
-------------------- -------------------- --------------------
Average Average Average
gold gold gold
Mine Ore mined grade Ore mined grade Ore mined grade
(tonnes) (g/t) (tonnes) (g/t) (tonnes) (g/t)
---------- ---------- -------- ---------- -------- ---------- --------
Open pit 578,492 1.15 133,952 1.28 712,444 1.18
Ugur -
o/pit - - 57,155 3.34 57,155 3.34
Gadir
- u/g 25,573 3.77 14,603 3.07 40,176 3.51
Gosha
- u/g 3,637 5.09 21,189 3.89 24,826 4.07
---------- ---------- -------- ---------- -------- ---------- --------
Total 607,702 1.29 226,899 2.16 834,601 1.52
========== ========== ======== ========== ======== ========== ========
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 2017, Anglo Asian stacked 173,616 tonnes of dry
crushed ore onto heap leach pads with an average gold content of
1.02 grammes per tonne (Q2 2017: 162,147 tonnes with an average
gold content of 1.05 grammes per tonne). The Company also heap
leached uncrushed Run of Mine ("ROM") ore. During Q3 2017, Anglo
Asian stacked 87,979 tonnes of ROM ore on to heap leach pads with
an average gold content of 0.95 grammes per tonne (Q2 2017: 115,559
tonnes with an average gold content of 0.89 grammes per tonne).
During Q3 2017, the Company processed 176,997 tonnes of ore with
an average gold content of 2.04 grammes per tonne through the
combined agitation leaching and flotation plants (Q2 2017: 176,798
tonnes with an average gold content of 1.69 grammes per tonne).
During Q3 2017, the Company produced gold doré containing 12,221
ounces of gold and 4,381 ounces of silver at Gedabek (Q2 2017:
9,131 ounces of gold and 3,266 ounces of silver). During Q3 2017,
the agitation leaching plant produced 7,318 and 2,882 ounces of
gold and silver, respectively, and the heap leach operations
produced 4,903 and 1,499 ounces of gold and silver, respectively.
The increase in gold doré production in Q3 2017 was due to the
commencement of mining from Ugur in September 2017. Of the 12,221
ounces of gold and 4,381 ounces of silver produced in the quarter,
6,842 ounces of gold and 3,219 ounces of silver were produced in
September 2017.
During Q3 2017, the flotation plant processed 98,621 tonnes of
ore in the form of feed-stock of both milled ore and tailings from
the agitation leaching plant (Q2 2017: 133,027 tonnes). The gross
metal contained within this feed-stock was 4,662 ounces of gold,
49,163 ounces of silver and 521 tonnes of copper (Q2 2017: 5,753
ounces of gold, 72,115 ounces of silver and 660 tonnes of copper).
Copper concentrate of 2,379 dmt was produced containing 385 tonnes
of copper and 2,243 ounces of gold (Q2 2017: copper concentrate of
3,203 dmt was produced containing 529 tonnes of copper and 3,005
ounces of gold). SART processing produced 333 dmt of copper
concentrate containing 165 tonnes of copper and 4 ounces of gold
(Q2 2017: 419 dmt of copper concentrate containing 187 tonnes of
copper and 4 ounces of gold).
The following table summarises gold doré production and sales at
Gedabek for FY 2016 and Q1 to Q3 2017:
Gold produced* Silver Gold sales** Gold Sales
(ounces) Produced* (ounces) price
(ounces) ($/ounce)
Quarter ended
31 March 2016 13,383 1,958 12,143 1,184
30 June 2016 17,926 2,983 15,661 1,265
H1 2016 31,309 4,941 27,804 1,230
30 Sept 2016 15,407 2,502 12,567 1,332
31 Dec 2016 14,221 2,845 12,995 1,227
H2 2016 29,628 5,347 25,562 1,278
FY 2016 60,937 10,288 53,366 1,253
31 March 2017 9,258 2,447 8,283 1,220
30 June 2017 9,131 3,266 7,406 1,258
H1 2017 18,389 5,713 15,689 1,238
30 Sept 2017 12,221 4,381 9,287 1,286
-------------- -------------- ----------- ------------- ----------
* 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
2016 and Q1 to Q3 2017:
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
Quarter ended 31
December
SART processing 445 219 7 6,751
Flotation 2,059 359 1,255 40,620
Total 2,504 578 1,262 47,371
2017
Quarter ended 31
March
SART processing 428 210 5 5,523
Flotation 2,312 396 1,815 31,399
Total 2,740 606 1,820 36,922
Quarter ended 30
June
SART processing 419 187 4 4,717
Flotation 3,203 529 3,005 37,735
Total 3,622 716 3,009 42,452
Quarter ended 30
Sept
SART processing 333 165 4 9,097
Flotation 2,379 385 2,243 26,810
Total 2,712 550 2,247 35,907
------------------ ------------ --------- --------- ---------
* including Government of Azerbaijan's share.
** certain amounts 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 2016 and Q1 through Q3 2017.
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
2016 1,821 381 619 26,844 1,319 2,137
30 June
2016 2,361 497 1,449 49,231 1,582 2,977
H1 2016 4,182 878 2,068 76,075 2,901 5,114
30 Sept
2016 1,844 485 1,127 31,397 1,782 3,612
31 Dec
2016 2,504 578 1,262 47,371 2,147 3,865
H2 2016 4,348 1,063 2,389 78,768 3,929 7,477
FY 2016 8,530 1,941 4,457 154,843 6,830 12,591
31 March
2017 2,740 606 1,820 36,922 2,230 4,220
30 June
2017 3,622 716 3,009 42,452 3,166 6,104
H1 2017 6,362 1,322 4,829 79,374 5,396 10,324
30 Sept
2017 2,712 550 2,247 35,907 2,905 5,480
---------- ------------ --------- --------- --------- ------------- --------------
Note that certain figures are different to those previously
disclosed due to final reconciliation of concentrate production and
sales.
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
Net debt
The Company had net debt at 30 September 2017 of $25.2 million,
a reduction of $9.4 million since 31 December 2016.
$m
Amsterdam Trade Bank 4.9
Gazprombank (Switzerland) Ltd. 4.9
International Bank of Azerbaijan - loan 3.5
International Bank of Azerbaijan 0.9
Atlas Copco equipment finance loan 0.4
YapiKredit 2.4
Pasha Bank 5.4
Kapital Bank 1.2
Reza Vaziri - director's loan 3.9
-----
Total Loans 27.5
Cash on hand and at bank (2.3)
-----
Net debt 25.2
-----
**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
----------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
----------------- ------------------- ------------------
Lottie Wadham 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. The Company has also started production in
September 2017 from its Ugur open pit mine, a recently discovered
gold ore deposit at Gedabek.
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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