Source - RNS
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:

 


6 months to

30 June 2017

3 months to

30 September 2017

9 months to

 30 September 2017

Mine

Ore mined

Average

gold grade

Ore mined

Average

gold grade

Ore mined

Average

gold 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*

(ounces)

Silver

Produced*

(ounces)

Gold sales**

(ounces)

Gold Sales price

($/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

International Bank of Azerbaijan

3.5

0.9

Atlas Copco equipment finance loan

YapiKredit

Pasha Bank

Kapital Bank

0.4

2.4

5.4

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:

 

Reza Vaziri

Anglo Asian Mining plc

Tel: +994 12 596 3350

Bill Morgan

Anglo Asian Mining plc

Tel: +994 502 910 400

Stephen Westhead

Anglo Asian Mining plc

Tel: +994 502 916 894

Ewan Leggat

SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Tel: +44 (0) 20 3470 0470

Soltan Tagiev

SP Angel Corporate Finance LLP

Tel + 44 (0) 20 3470 0470

Susie Geliher

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

Lottie Wadham

St Brides Partners Ltd

Tel: +44 (0) 20 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
 
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