🕐11.07.13 - 12:00 Uhr
ANGLO ASIAN - BUY COMMENT SP ANGEL - 54P PRICE TARGET (70% INCREASE TO CURRENT S P) - GEDABEK GOLD PRODUCTION (AZERBAIJAN) ON TARGET TO HIT 60,000OZ AT LOW CASH COST OF US$450-500 PER OZ
Please see SP Angel’s analyst BUY comment on Anglo Asian’s Q2 2013 Gedabek gold, copper, silver mining operation update in Azerbaijan.
The news today highlights that the Company successfully commissioned a new agitation leaching plant at Gedabek, designed to increase gold recoveries at the Company’s flagship operation and as a result on track to produce c.42,000 oz of gold in 2H 2013 and deliver a production target of 60,000 oz of gold at a lowered cash cost of US$450-500 per oz from.
SP Angel retain its price target of 54p on the stock – a 70% increase to the current shareprice of 31.75p
Kindest regards
Felicity
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Anglo Asian Mining* (AAZ LN) 32.75p, Mkt cap £36m – Q2 operations update highlights expectation for 42,000oz of gold in H2
BUY - Target Price: 54p
Anglo Asian Mining has released details of its Q2 operations update.
The Gedabek gold mine is expected to perform strongly through the second half following the commissioning of the new gold recovery plant.
Management reiterate expectations for 60,000oz of gold production for the year versus 50,215oz last year
The agitation leach plant was completed on time and $7m under its $52m budget.
If only more companies could achieve these simple goals?
Gold production for the quarter was supressed at 8,912oz due to disruption from the switch over to the new plant.
The SART recovery plant continues to recover copper, silver and gold in copper concentrate form.
Group net debt has risen to US$47m following the cost of the agitation leach plant and is well within the company’s facilities.
The agitation leach plant is to increase its processing rate to 100tph with high grade gold ore stockpiled for processing and an ability to reprocess lower grade heap-leach material with an effective near-zero feed cost.
The mine may also process a proportion of higher grade gold ore from the Gosha gold mine at some stage adding to production and potentially reducing unit costs further.
The addition of ore from Gosha could raise gold production to 80,000oz to 90,000ozpa by end 2014.
Gold C1 cash costs should fall to $450-500/oz for the full year from $668/oz in FY 2012.
December year end
2010A
2011A
2012A
2013E
2014E
2015E
Gold price
US$/oz
1,241
1,571
1,659
1,550
1,500
1,500
Gold produced (incl the Gov.
share)
koz
67.3
57.1
50.2
60.0
60.5
61.2
Cash costs (net of byproducts, ex Gov.
share)
US$/oz
410
513
766
432
523
698
Revenue
US$m
72.0
83.8
73.5
93.6
97.7
94.1
EBITDA
US$m
47.0
54.0
40.2
49.8
40.3
34.6
PBT
US$m
19.8
31.6
28.6
28.2
21.9
16.5
PAT
US$m
15.2
18.8
19.4
16.3
13.3
9.6
Basic EPS
cents
13.9
16.9
17.4
14.6
11.9
8.7
Diluted EPS
cents
13.4
16.5
17.3
14.5
11.8
8.6
Basic PER
x
2.68
4.60
3.79
3.46
4.24
5.83
Diluted PER
x
2.79
4.72
3.82
3.48
4.27
5.88
Net cash flow
US$m
4.3
4.8
-7.5
20.7
24.4
8.9
Share price
cents
37.3
77.8
65.9
50.5
50.5
50.5
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