TIDMAAZ
RNS Number : 9322B
Anglo Asian Mining PLC
16 January 2018
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
16 January 2018
Anglo Asian Mining plc
Q4 & FY 2017 Production and operations review
Anglo Asian delivers total production in top percentile of
forecast
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, sales and operations review for
its Gedabek gold, copper and silver mining and production contract
area ("Gedabek") in western Azerbaijan for the three months to 31
December 2017 ("Q4 2017") and the year ended 31 December 2017 ("FY
2017"). Note that all references to "$" are to United States
dollars.
Overview
-- 71,461 gold equivalent ounces ("GEOs") produced during FY
2017 - at the uppermost level of the Company's forecast of 64,000
to 72,000 GEOs
-- Production for FY 2017 was just over one per cent. lower than
FY 2016 of 72,304 GEOs despite suspension of mining for part of the
year from the main open pit and the Gadir underground mine whilst
production optimisation was carried out
-- Increased copper and silver production during FY 2017 with a
small decrease in gold production
o 2.6 per cent. increase in copper produced to 1,991 tonnes of
copper (FY 2016: 1,941 tonnes)
o 4.7 per cent. increase in silver produced to 172,853 ounces
(FY 2016: 165,131 ounces)
o 8.8 per cent. decrease in gold produced to 59,617 ounces
(2016: 65,394 ounces)
-- Solid upward trajectory in total production during 2017
reflecting the expansion initiatives undertaken at Gedabek with a
significant increase in Q4 2017 due to the commencement of
production in September from the new Ugur open pit mine as
follows:
2017 quarter Total production
ended (GEOs)
-------------- -----------------
31 March 14,577
-------------- -----------------
30 June 15,985
-------------- -----------------
30 September 17,714
-------------- -----------------
31 December 23,185
-------------- -----------------
Total - FY
2017 71,461
-------------- -----------------
-- Net debt reduced by approximately 47 per cent. during FY 2017
to $18.3 million at 31 December 2017 (31 December 2016: $34.6
million)
-- Water treatment plant now producing around 200,000 litres of
clean water per day and a six-metre raise of the tailings dam wall
completed in Q4 2017
-- Operational performance anticipated to be further enhanced in 2018 due to
o Recommencement of mining operations from the main Gedabek open
pit in Q1 2018
o Recommencement of flotation processing, independent of the
agitation leaching plant, following installation of a second,
dedicated crusher line targeted for Q2 2018 - this will increase
processing capacity significantly
Anglo Asian CEO Reza Vaziri commented, "I am delighted to report
that following a very strong performance in Q4 2017, Anglo Asian
has delivered full year production at the very top of its published
forecast range. This is a considerable achievement in itself, but
when taken together with the recent expansion and production
optimisation initiatives put in place and commencement of
production from Ugur, it is clear that 2017 was an overwhelmingly
successful year for Anglo Asian. The almost halving of net debt in
the year is also a significant achievement as the Company returns
to financial health.
"Anglo Asian is continuing to lay the foundations for long term
sustainable production growth and to deliver value to its
shareholders. Mining is expected to recommence at our main open pit
at Gedabek in the near-term together with the installation of a
second, dedicated crusher line for the flotation plant. These
should significantly enhance our production profile throughout
2018. I look forward to providing further updates on forecast 2018
production and expansion and exploration objectives in the coming
weeks."
Production and sales review
Q4 2017
-- 31 per cent. increase in total production expressed as GEOs
for Q4 2017 to 23,185 GEOs (Q3 2017: 17,714 GEOs)
-- 52 per cent. increase in gold production for Q4 2017 to
21,931 ounces (Q3 2017: total 14,468 ounces) due to production from
Ugur
-- Copper production for Q4 2017 totalled 119 tonnes (Q3 2017:
550 tonnes) from SART processing only. No flotation concentrate
produced in Q4 2017 as the agitation leaching plant treated Ugur
ore which does not contain copper
-- 18 per cent. increase in silver production for Q4 2017 to
47,478 ounces (Q3 2017: total 40,288 ounces)
-- Gold bullion sales of 18,520 ounces at an average of $1,278
per ounce (Q3 2017: 9,287 ounces at an average of $1,286 per
ounce)
-- Copper concentrate shipments to the customer totalled 196 dry
metric tonnes ("dmt") with a sales value of $1.0 million (excluding
Government of Azerbaijan production share) (Q3 2017: 2,905 dmt with
a sales value of $5.5 million)
FY 2017
-- Total production expressed as gold equivalent ounces was
71,461 GEOs (FY 2016: 72,304 GEOs) compared to target production of
between 64,000 and 72,000 GEOs
-- Gold production for FY 2017 totalled 59,617 ounces (FY 2016:
total 65,394 ounces) - lower production earlier in the year was
partially offset by production from Ugur commencing in September
2017
-- Copper production for FY 2017 totalled 1,991 tonnes (FY 2016:
1,941 tonnes) despite flotation plant idled in Q4 2017
-- Silver production for FY 2017 totalled 172,853 ounces (FY 2016: total 165,131 ounces)
-- Gold bullion sales of 43,496 ounces at an average of $1,265
per ounce (FY 2016: sales of 53,281 ounces at an average of $1,253
per ounce)
-- Copper concentrate shipments to the customer totalled 8,497
dmt with a sales value of $16.8 million (excluding Government of
Azerbaijan production share) (FY 2016: 6,830 dmt with a sales value
of $12.3 million)
Company financial review
Net debt
The Company had net debt at 31 December 2017 of $18.3 million, a
reduction of $16.3 million since 31 December 2016.
$m
Kapital Bank 1.0
Amsterdam Trade Bank and Gazprombank (Switzerland) 7.4
International Bank of Azerbaijan 2.1
Atlas Copco equipment finance loan 0.3
YapiKredit 2.2
Pasha Bank 3.7
Reza Vaziri - director's loan 3.9
-----
Total loans 20.6
Cash on hand and at bank (2.3)
-----
Net debt 18.3
-----
The amount of the loan facility from Reza Vaziri is $4.0 million
and the term of the loan has been extended until 8 January 2019.
The amount currently outstanding under the facility is $3.9
million. The interest rate of the loan has been reduced from 10 per
cent. to 7 per cent. from 9 January 2018 with all other terms of
the loan remaining unchanged.
Operations review
The Company mined the following ore in the year ended 31
December 2017:
9 months to 3 months to 12 months to
30 September 31 December 31 December
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 712,444 1.18 - - 712,444 1.18
Ugur -
o/pit 57,155 3.34 181,663 3.16 238,818 3.20
Gadir
- u/g 40,176 3.51 40,438 3.61 80,614 3.56
Gosha
- u/g 24,826 4.07 3,458 3.45 28,284 3.99
---------- ---------- -------- ---------- -------- ---------- --------
Total 834,601 1.52 225,559 3.24 1,060,160 1.89
========== ========== ======== ========== ======== ========== ========
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 Q4 2017, Anglo Asian stacked 201,097 tonnes of dry
crushed ore on to heap leach pads with an average gold content of
0.86 grammes of gold per tonne (Q3 2017: 173,616 tonnes with an
average gold content of 1.02 grammes per tonne). The Company also
heap leached uncrushed Run of Mine ("ROM") ore. During Q4 2017,
Anglo Asian stacked 99,046 tonnes of ROM ore on to heap leach pads
with an average gold content of 0.68 grammes of gold per tonne (Q3
2017: 87,979 tonnes with an average gold content of 0.95 grammes
per tonne).
During Q4 2017, the Company processed 211,421 tonnes of ore with
an average gold content of 2.92 grammes of gold per tonne through
the agitation leaching plant (Q3 2017: 176,997 tonnes with an
average gold content of 2.04 grammes per tonne through the combined
agitation leaching and flotation plants).
During Q4 2017, the Company produced gold doré containing 21,924
ounces of gold and 12,634 ounces of silver at Gedabek (Q3 2017:
12,221 ounces of gold and 4,381 ounces of silver). During Q4 2017,
the agitation leaching plant produced 16,952 and 9,777 ounces of
gold and silver, respectively, and the heap leach operations
produced 4,972 and 2,857 ounces of gold and silver, respectively.
During FY 2017 the Company produced gold doré containing 52,534
ounces of gold and 22,728 ounces of silver (FY 2016: 60,937 ounces
of gold and 10,288 ounces of silver).
During Q4 2017, the flotation plant was idled as the agitation
leaching plant was processing Ugur ore which does not contain
copper. During FY 2017, the flotation plant processed 374,202
tonnes of ore in the form of feed-stock of both milled ore and
tailings from the agitation leaching plant (FY 2016: 531,840
tonnes). The gross metal contained within this feed-stock was
14,978 ounces of gold, 198,751 ounces of silver and 1,861 tonnes of
copper (FY 2016: 15,808 ounces of gold, 335,820 ounces of silver
and 2,331 tonnes of copper). Copper concentrate of 7,894 dmt was
produced containing 1,310 tonnes of copper and 7,063 ounces of gold
(FY 2016: copper concentrate of 6,931 dmt was produced containing
1,121 tonnes of copper and 4,430 ounces of gold).
During Q4 2017, SART processing produced 256 dmt of copper
concentrate containing 119 tonnes of copper and 7 ounces of gold
(Q3 2017: 333 dmt of copper concentrate containing 165 tonnes of
copper and 4 ounces of gold). During FY 2017, SART processing
produced 1,436 dmt of copper concentrate containing 681 tonnes of
copper and 20 ounces of gold (FY 2016: 1,599 dmt of copper
concentrate containing 820 tonnes of copper and 27 ounces of
gold).
The following table summarises gold doré production and sales at
Gedabek for FY 2016 and FY 2017:
Gold produced* Silver Gold sales** Gold Sales
(ounces) Produced* (ounces) price
(ounces) ($/ounce)
Quarter ended
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 15,407 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 53,281 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
31 Dec 2017 21,924 12,634 18,520 1,278
H2 2017 34,145 17,015 27,807 1,281
FY 2017 52,534 22,728 43,496 1,265
-------------- -------------- ----------- ------------- ----------
NOTE
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
The following table summarises copper concentrate production
from both its SART and flotation plants for FY 2016 and FY
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
Quarter ended 31
December
SART processing 256 119 7 34,844
Flotation - - - -
Total 256 119 7 34,844
------------------ ------------ --------- --------- ---------
* including Government of Azerbaijan's share.
Note that 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 FY 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 2,043
30 June
2016 2,361 497 1,449 49,231 1,582 3,019
H1 2016 4,182 878 2,068 76,075 2,901 5,062
30 Sept
2016 1,844 485 1,127 31,397 1,782 3,577
31 Dec
2016 2,504 578 1,262 47,371 2,147 3,615
H2 2016 4,348 1,063 2,389 78,768 3,929 7,192
FY 2016 8,530 1,941 4,457 154,843 6,830 12,254
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
31 Dec
2017 256 119 7 34,844 196 977
H2 2017 2,968 669 2,254 70,751 3,101 6,457
FY 2017 9,330 1,991 7,083 150,125 8,497 16,781
---------- ------------ --------- --------- --------- ------------- --------------
* including Government of Azerbaijan's share.
** excluding Government of Azerbaijan's share.
Note that certain figures are different to those previously
disclosed due to final reconciliation of concentrate production and
sales.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**S**
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's main operating location is the Gedabek contract
area ("Gedabek") which is a 300 square kilometer area in the lower
Caucasus mountains in western Azerbaijan. The Company developed
Azerbaijan's first operating gold/copper/silver mine at Gedabek
which commenced gold production in May 2009. Mining at Gedabek was
initially from its main open pit which 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, In September 2017, production commenced at the Ugur open pit
mine, a recently discovered gold ore deposit at Gedabek. 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 produced 71,461 gold equivalent ounces ('GEOs') for
the year ended 31 December 2017. Gedabek is a polymetallic project
which demonstrates a high copper content at the main open pit mine,
and an oxide gold-rich zone at Ugur. The Company therefore employs
a series of flexible processing routes through which to optimise
recoveries and efficiencies. The Company produces gold doré through
agitation and heap leaching operations, copper concentrate from its
Sulphidisation, Acidification, Recycling, and Thickening (SART)
plant and also a copper and precious metal concentrate from its
flotation plant, which is processing tailings from the agitation
leach plant. A second dedicated crusher line is also currently
being installed for the flotation plant to enable it to operate
independently of the agitation leaching 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
MSCSFMFMIFASEIF
(END) Dow Jones Newswires
January 16, 2018 02:00 ET (07:00 GMT)
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
