TIDMAAZ
RNS Number : 8077L
Anglo Asian Mining PLC
14 January 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
14 January 2016
Anglo Asian Mining plc
Quarter 4 and Full Year 2015, 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 December 2015 ("Q4 2015") and
the year ended 31 December 2015 ("FY 2015"). Note that all
references to "$" are to United States dollars.
Production overview
-- Gold production for Q4 2015 totalled 17,930 ounces with
12,996 ounces from the agitation leaching plant, 4,593 ounces from
heap leach operations, 6 ounces from SART processing and 335 ounces
from flotation (Q3 2015: total 18,164 ounces)
-- Copper production for Q4 2015 totalled 335 tonnes, 205 tonnes
from SART processing and 130 tonnes from flotation (Q3 2015: 216
tonnes)
-- Silver production for Q4 2015 totalled 17,710 ounces with
1,373 ounces from the agitation leaching plant, 485 ounces from
heap leaching operations, 6,589 ounces from SART processing and
9,263 ounces from flotation (Q3 2015: total 4,439 ounces)
-- Anglo Asian's FY 2015 production was as follows:
o Gold: 72,032 ounces, a 19 per cent. increase over FY 2014
production of 60,285 ounces
o Copper: 969 tonnes of copper, a 24 per cent. increase over FY
2014 production of 784 tonnes
o Silver: 28,626 ounces, an 8 per cent. decrease over FY 2014
production of 31,177 ounces
Sales overview
-- Q4 2015 gold doré sales of 15,759 ounces at an average of
$1,108 per ounce - FY 2015 gold doré sales of 63,924 ounces at an
average of $1,161 per ounce
-- Q4 2015 SART copper concentrate sales totalled 425 dry metric
tonnes ("dmt"), containing 235 tonnes of copper - FY 2015 copper
concentrate sales of 1,310 dmt generating $3.3 million in sale
proceeds
-- Q4/FY 2015 flotation copper concentrate sales of 392 dmt
generating $0.6 million in sale proceeds
Operational update
-- Flotation plant commenced production in Q4 2015 with
production in the quarter of 578 dmt of copper concentrate
containing 130 tonnes of copper and 335 and 9,263 ounces of gold
and silver respectively
-- 28,819 tonnes of ore with average gold content of 7.71
grammes per tonne from the Gadir underground mine was processed by
the agitation leach plant in Q4 2015. For FY 2015, 37,880 tonnes
with average gold content of 7.98 grammes per tonne was
processed
Company financials
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents, totaled $49.2 million at 31 December
2015 ($52.4 million at 31 December 2014)
-- Loan from Reza Vaziri extended to 8 July 2016 with all other
terms of the loan remaining the same
Anglo Asian CEO Reza Vaziri commented, "This has been a
significant year of growth for Anglo Asian at our flagship Gedabek
mine in Azerbaijan. Gold production was the highest recorded and we
met our production target set at the beginning of 2015. Gold
production in the year increased 19 per cent. to 72,032 ounces and
copper production increased 24 per cent. to 969 tonnes. With
production at Gedabek increasing, the successful launch of our
flotation plant in Q3 2015 and our continuing plant optimization to
improve efficiencies and cost controls, I believe we have delivered
on our turnaround strategy this year to return Anglo Asian to
profitability. I look forward to reporting on our developments
during the course of 2016 as we continue our momentum of
establishing Anglo Asian as a leading mid-tier gold and copper
producer in Caucasia."
Full details
Gedabek is a polymetallic deposit from which Anglo Asian
produces gold, copper and silver from its open pit mining operation
and its co-located Gadir underground mine. The Company also
transports ore from its Gosha underground mine and processes it at
Gedabek which is approximately 50 kilometres away. The Company
produces gold doré from heap and agitation leaching.
Sulphidisation, Acidification, Recycling, and Thickening ("SART")
and flotation are used to produce copper and precious metal in the
form of copper concentrates.
During Q4 2015, the Company produced 17,930 ounces of gold at
Gedabek; 12,996 ounces from the agitation leach plant, 4,593 ounces
from heap leach operations, 6 ounces from SART processing and 335
ounces from flotation. Anglo Asian completed gold doré sales of
15,759 ounces of gold at an average of $1,108 per ounce. For FY
2015, the Company produced 72,032 ounces of gold at Gedabek which
was a 19 per cent. increase compared to the total gold production
for FY 2014. Of the gold production in FY 2015, 48,226 ounces was
from the agitation leach plant, 23,444 ounces was from heap leach
operations, 27 ounces was from SART processing and 335 ounces was
from flotation. For FY 2015, Anglo Asian completed gold doré sales
of 63,924 ounces of gold at an average of $1,161 per ounce.
During Q4 2015, the Company produced 17,710 ounces of silver at
Gedabek; 1,373 ounces from the agitation leaching plant, 485 ounces
from heap leaching operations, 6,589 ounces from SART and 9,263
ounces from flotation. FY 2015 silver production totalled 28,626
ounces; with 2,935 ounces from the agitation leaching plant, 1,326
ounces from heap leaching operations, 15,102 ounces from SART and
9,263 ounces from flotation.
The Company's SART plant has been performing well producing a
copper/silver sulphide concentrate and for Q4 2015 contained copper
in the SART concentrate totalled 205 tonnes. FY 2015 SART copper
production totalled 839 tonnes. Anglo Asian has a strategic three
year sales partnership in place with Industrial Minerals (SA) which
commenced in May 2014 for the sale of Anglo Asian copper
concentrates. Sales of copper concentrate produced by SART in Q4
2015 totalled 425 dmt. FY 2015 sales of SART concentrate totalled
1,310 dmt which realised sales proceeds of $3.3 million.
The Company's new flotation plant to increase copper production
at Gebabek was commissioned in Q3 2015 and began commercial
production during Q4 2015. For Q4/FY 2015, 578 dmt of copper
concentrate was produced containing 130 tonnes of copper, 335
ounces of gold and 9,263 ounces of silver. 392 dmt were shipped and
sold during Q4 2015 containing 88 tonnes of copper, 239 ounces of
gold and 6,381 ounces of silver. These shipments had a sales value
of $0.6 million.
The following table summarises metal production and sales
(excluding those produced from flotation) at Gedabek for FY
2015:
Gold Gold Gold Copper Copper Silver
produced* sales** Sales produced* Concentrate produced*
(ounces) (ounces) price (tonnes) sales** (ounces)
($/oz) (dmt)
FY 2014
- total
Quarter
ended 60,285 50,615 1,267 784 1,148 31,177
31 March
2015 17,193 17,206 1,214 182 234 1,950
30 June
2015 18,745 16,088 1,193 236 372 4,527
30 Sept
2015 18,164 14,871 1,123 216 279 4,439
31 Dec
2015 17,595 15,759 1,108 205 425 8,447
Cumulative
FY 2015
- total 71,697 63,924 1,161 839 1,310 19,363
----------- ---------- ---------- -------- ----------- ------------- -----------
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
The following table summarises flotation concentrate production
and sales at Gedabek for Q4/FY 2015:
Flotation
Flotation Gold Silver Copper concentrate
concentrate content content content sales
(dmt) (ounces) (ounces) (tonnes) ($000)
Produced* 578 335 9,263 130 Not applicable
Sold** 392 239 6,381 88 626
----------- ------------ --------- --------- --------- ---------------
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
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 leach plant.
During Q4 2015, Anglo Asian stacked 101,086 (FY 2015: 393,999)
tonnes of dry crushed ore on to heap leach pads with an average
gold content of 1.48 grammes per tonne (FY 2015: 1.47 grammes per
tonne). The Company also heap leached uncrushed (Run of Mine -
"ROM") ore. During Q4 2015, Anglo Asian stacked 32,004 (FY 2015:
546,712) tonnes of ROM ore on to heap leach pads with an average
gold content of 1.1 grammes per tonne (FY 2015: 0.97 grammes per
tonne).
During Q4 2015, the Company processed 148,240 tonnes of ore (FY
2015: 576,879 tonnes of ore) with an average gold content of 3.51
grammes per tonne (FY 2015: 3.44 grammes per tonne) through the
agitation leach plant.
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