TIDMAAZ
RNS Number : 6467X
Anglo Asian Mining PLC
15 January 2014
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
15 January 2014
Anglo Asian Mining plc ('Anglo Asian' or 'the Company')
Q4 Operations and FY 2013 Update - Gedabek Gold/Copper/Silver
Mine in Azerbaijan
Anglo Asian Mining plc, the AIM listed gold producer in
Azerbaijan, is pleased to provide an update for the three months to
31 December 2013 ('Q4 2013') and the year ended 31 December 2013
('FY 2013') on production and operations at its flagship Gedabek
gold/copper/silver mine ('Gedabek') in western Azerbaijan.
Overview
-- Gold production at Gedabek for Q4 2013 totalled 14,329 oz
with 11,159 oz from Agitation Leaching Plant operations and 3,170
oz from heap leach operations
-- FY 2013 gold production totalled 52,068 oz (2012: 50,025 oz gold)
-- Q4 2013 gold sales of 12,445 oz at an average of US$1,280 per
oz bringing the full year gold sales to 46,075 oz of gold at an
average of US$1,387 per oz for FY 2013
-- A continuous Knelson concentrator is targeted to be on-line
by Q2 2014 and is expected to enhance gold recovery from
high-copper sulphide ore and reduce cyanide consumption
-- Copper, silver and gold production from SART processing
operations for Q4 2013 totalled 71t of copper, 6,563 oz of silver
and 4 oz of gold
-- Copper concentrate production for FY 2013 from SART
processing of 327 t of copper, 45,621 oz of silver and 39 oz of
gold (2012: 502 t copper, 98,158 oz silver, 86 oz gold)
-- Strong cash position of US$5.4 million at 31 December 2013
-- Net debt, being interest-bearing loans and borrowings less
cash and cash equivalents totals US$46.3 million at 31 December
2013
Anglo Asian CEO Reza Vaziri said, "Whilst we increased gold
production at Gedabek in 2013 to 52,068 oz from 50,025 oz in 2012,
naturally we are disappointed to have missed our production target
for the year due to unexpected weather conditions and processing
issues in Q4 2013, especially given the successful commissioning of
our new Agitation Leaching Plant in June 2013. This, in tandem with
the lower gold price, in particular during the second half, will
see the cash cost per ounce increase and profitability for 2013
significantly reduced from FY 2012.
"Looking ahead, we are taking steps to ensure we maximise our
output and efficiency for 2014 and beyond. We are committed to
increasing Gedabek's gold production by utilising the Agitation
Leaching Plant and aim to double production from the heap leaching
operation through efficiencies. Additionally, the installation of a
Knelson concentrator in the second quarter of 2014 is expected to
enable isolation of copper sulphides that have been found to
restrict gold recoveries in the agitation leach tanks during the
latter part of 2013.
"Furthermore we are making good progress on the development of
our second mining project in Azerbaijan, Gosha, located 50km away
from Gedabek, with the prospect of gold production in 2014.
Successful processing at Gedabek of a test batch of ore from Gosha
indicates that a simple screen concentrator will enable separation
of the high grade fines from the lower grade host rock and there
will be no need to construct a floatation plant at Gosha therefore
minimising capital expenditure and any environmental impact. With
all these developments in mind I look forward to 2014 with optimism
and to updating shareholders on our activities as we continue to
build a leading gold, copper and silver mining company in
Azerbaijan."
Full Details
During the quarter ended 31 December 2013, the Company produced
14,329 oz of gold ('Au') at Gedabek from its Agitation Leaching
Plant and heap leach operations. This brings total production for
the year ended 31 December 2013 from Gedabek to 52,068 oz of gold,
an increase of 2,043 oz in comparison to 2012. Anglo Asian
completed gold sales of 12,445 oz Au at an average of US$1,280 per
oz for Q4 2013 and gold sales of 46,076 oz Au at an average of
US$1,387 per oz for FY 2013.
The following summary table of gold production and prices
outlines quarter-on-quarter gold production at Gedabek for FY
2013.
Quarter Ended Gold Produced (including Weighted Average
Govt. of Azerbaijan's Gold Sales Price
share) (US$)
(oz)
31 March 2013 8,585 1,638
30 June 2013 8,912 1,438
30 September 2013 20,242 1,328
31 December 2013 14,329 1,280
Total FY 2013 52,068 1,387
Since the start-up of the agitation leach plant in June, only
low grade ore (<1.5 g/t) has been treated by heap leaching, with
high grade ore being sent for agitation leaching. During Q4 2013,
the Company transferred 66,694 tonnes of dry ore onto the heap
leach pads with an average gold content of 1.36 g/t. For the year
to 31 December 2013, Anglo Asian transferred 576,748 tonnes of dry
ore onto the leach pad with an average gold content of 1.31
g/t.
As previously disclosed, to improve gold recovery and production
at Gebabek the Company constructed and commissioned a new Agitation
Leaching Plant in June 2013 that is initially treating 100 tonnes
of ore per hour, increasing to up to 150 tonnes per hour under
optimal conditions and with an expected average of 120 tonnes per
hour within a few months. The problems experienced with higher
grade copper as mining progresses deeper should be minimised with
the addition of a Knelson concentrator for the gold at the
Agitation Leaching Plant.
Copper concentrate production from the Company's Sulphidisation,
Acidification, Recycling, and Thickening ('SART') plant totalled
327 tonnes Cu, 45,621 oz Ag and 39 oz Au for FY 2013. For Q4 2013
copper concentrate production contained 71 tonnes Cu, 6,563 oz Ag
and 4 oz Au. The Company plans to re-configure the SART plant in
2014 in order to achieve better performance than in 2013.
The reduced FY 2013 production and the lower gold price will
have a significant impact on Anglo Asian's 2013 profitability;
however, an increased focus is in place to ensure maximisation of
output and efficiency for 2014 and beyond.
During FY 2013 total sales of copper concentrate were US$6.6
million. During Q4 2013 the Company signed a contract with Glencore
International plc ('Glencore') for the sale of 550 wet metric
tonnes ('WMT'). Under the terms of the agreement, which is already
underway, Glencore agreed to purchase a total of 550 WMT of copper
concentrate product during December 2013 and January 2014.
Net debt as at 31 December 2013 stands at:
US$(m)
ATB Agitation Plant loan balance 37.0
IBA loan balance 11.6
Atlas Copco equipment finance loan 3.1
Total Loans 51.7
Cash on hand and at bank 5.4
Net debt 46.3
The amount of the loans with International Bank of Azerbaijan
('IBA') and Amsterdam Trade Bank N.V. ('ATB') were US$11.6 million
and US$37.0 million respectively and cash in the bank was US$5.4
million at 31 December 2013. In January 2013, the Company entered
into an arrangement with industrial group Atlas Copco for financing
of underground mining equipment for the Gosha gold project for
US$3.8 million (representing 85% of the equipment value) with a one
off 1% arrangement fee and 8.47% annual interest fee, to be paid in
eight quarterly instalments starting April 2013. Including this
loan, the net debt, being interest-bearing loans and borrowings
less cash and cash equivalents therefore, stood at US$46.3 million
at 31 December 2013.
**ENDS**
For further information please visit www.angloasianmining.com or
contact:
Reza Vaziri Anglo Asian Mining plc Tel: +994 12 596 3350
------------------- -------------------------- ---------------------
Sean Duffy Anglo Asian Mining plc Tel: +994 12 596 3350
------------------- -------------------------- ---------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3463
LLP 2260
------------------- -------------------------- ---------------------
Laura Littley SP Angel Corporate Finance Tel: +44 (0) 20 3463
LLP 2260
------------------- -------------------------- ---------------------
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
------------------- -------------------------- ---------------------
Lottie Brocklehurst St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
------------------- -------------------------- ---------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold producer in Central
Asia with a broad portfolio of production and exploration assets in
Azerbaijan. The Company has a 1,962 sq km prospective exploration
portfolio, assembled from analysis of historic Soviet geological
data and held under a Production Sharing Agreement ('PSA') based on
the Azeri oil industry. The Company developed Azerbaijan's first
operating gold/copper mine, Gedabek, which commenced gold
production in May 2009.
Anglo Asian is actively looking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in Central Asia and Caucasia in order
to fulfil its expansion ambitions and become a mid-tier gold and
base metal production company focussed in these regions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGMMVDKGDZM
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Apr 2024 to May 2024
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From May 2023 to May 2024