🕐18.07.14 - 08:27 Uhr
ANGLO ASIAN MINING PLC - Q2 2014 AND H1 2014 OPERATIONS UPDATE FROM ITS GEDABEK
GOLD/COPPER/SILVER MINE AND GOSHA GOLD PROJECT IN AZERBAIJAN
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
18 July 2014
Anglo Asian Mining plc (Anglo Asian or the Company)
Q2 2014 and H1 2014 Operations Update
Gedabek Gold/Copper/Silver Mine and Gosha Gold Project in Azerbaijan
Anglo Asian Mining plc, the AIM listed gold producer in Azerbaijan, is pleased to provide a production and operations update from its Gedabek and Gosha gold/copper/silver mining operations in western Azerbaijan for the three months to 30 June 2014 (Q2 2014) and six months to 30 June 2014 (H1 2014).
Overview - Production
Gold production for Q2 2014 totalled 15,736oz (10,849oz from the agitation leaching plant; 4,883oz from heap leach operations; and 4oz from SART), representing a 39% increase over the previous quarter (Q1 2014: 11,318oz of gold).
Silver production for Q2 2014 totalled 8,785oz (465oz from agitation leaching; 1,928oz from heap leach; and 6,392oz from SART) (Q1 2014: 13,139oz of silver)
Copper production for Q2 2014 from SART processing operations totalled 228 tonnes a 62% increase to the previous quarter (Q1 2014: 141 tonnes of copper)
H1 2014 production summary:
o Gold production totalled 27,054oz
o Silver production totalled 21,924oz
o Copper production totalled 369 tonnes
Overview - Gold and Copper Sales
Q2 2014 gold sales - 13,142oz at an average of US$1,292 per oz (Q1 2014 10,403 at US$1,303 per oz)
Q2 2014 copper concentrate shipments to the customer totalled 523 dry metric tonnes (dmt), containing 280 tonnes of copper; 13,218 ounces of silver; and 1.14 ounces of gold (Q1 2014 150 dmt were shipped)
Other Highlights
Three year copper concentrate sales contract with Industrial Minerals SA signed to sell both dry and wet copper concentrate
29% increase in JORC compliant gold resource at Gedabek gold/copper/silver mine in western Azerbaijan (Gedabek) to 1,449,537 ounces in the Measured and Indicated categories
Total Company gold production target for the year to 31 December 2014 (FY 2014) remains at between 62,000oz and 67,000oz gold
Due to increasing copper production - the copper target from SART for FY 2014 is now 750 tonnes
The Company met the required Amsterdam Trade Bank N.V.
(ATB) Debt Service Cover Ratio (DSCR) for the 6 month period to 30 June 2014
Anglo Asian CEO Reza Vaziri said, We are pleased to report a significant increase in gold and copper production for Q2 2014 at our gold, copper, and silver mine in Azerbaijan.
Whilst we have had a slow start in terms of H1 2014 production at Gedabek, we are now seeing month on month production improvements and believe, with our cost saving initiatives such as reductions in cyanide costs and increased processing capacity at Gedabek that our H2 2014 performance will be much stronger.
In tandem with improved production figures for Q2 2014, we have also entered into an exclusive sales contract with Industrial Minerals SA for our copper concentrates, ensuring future sales revenues from this production stream.
In line with our improving production profile from Gedabek and Gosha, we remain confident that we will achieve our FY 2014 gold production target of 62,000 67,000 ounces and copper production of 750 tonnes.
Full Details
During the quarter ended 30 June 2014, the Company produced 15,736oz of gold (Au) at Gedabek from the agitation leaching plant (10,849oz); heap leach operations (4,883oz); and SART (4oz).
For H1 2014 Anglo Asian produced 27,054oz Au which is in line with the Companys mine plan.
Of this 19,446oz has been produced from the agitation leaching plant; 7,598oz from the heap leach operations; and 10oz from SART.
Anglo Asian has completed gold sales of 13,142oz Au at an average of US$1,292 per oz during Q2 2014 and 23,545oz Au at an average of US$1,297 per oz for H1 2014.
Anglo Asians board of directors remain confident that production will continue to increase in H2 2014 and the production target remains at 62,000 67,000oz from its Azerbaijan gold operations for FY 2014.
The following summary table of gold production and prices outlines quarter-on-quarter gold production at Gedabek, including Gosha.
Quarter Ended
Gold Produced (oz) (including Govt.
of Azerbaijans share)
Weighted Average Gold Sale Price
(US$)
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 for FY 2013
52,068
1,387
31 March 2014
11,318
1,303
30 June 2014
15,736
1,292
At Gedabek, the Company continues to process ore through its agitation leaching plant and heap leach plants.
During Q2 2014 the Company stacked 162,149 tonnes of dry ore onto the heap leach pads with an average gold content of 1.18g/t.
As previously reported, since commissioning the agitation leaching plant in June 2013, low grade ore (<1.5 g/t) has been treated by heap leaching, with higher grade ore being sent to the agitation leaching plant.
During Q2 2014 the Company processed 159,605 tonnes of ore with an average gold content of 2.88g/t through the agitation leaching plant.
Of that, 9,000 tonnes of ore with an average grade of 3.5g/t Au was transferred from Gosha and processed at Gedabeks agitation leaching plant in Q2 2014.
Anglo Asians Management continues to work on improving the agitation leach plant (ALP) recovery rates.
The ALP achieved 77% in Q2 2014 (Q1 2014: 70%).
In terms of copper concentrate production from the Companys Sulphidisation, Acidification, Recycling, and Thickening (SART) plant at Gedabek, production for Q2 2014 totalled 228 tonnes of copper, 6,392oz of silver and 4oz of gold.
This is an increase in copper production of 62% from the previous quarters production of 141 tonnes of copper.
As a result of improvements to the SART processing operations FY 2014 copper production is now targeted to reach 750 tonnes.
The Company was also pleased to report that it secured a three year exclusive sales partner for copper concentrate sales with Industrial Minerals SA, a Geneva based integrated trading, mining and logistics group, to become Anglo Asians exclusive partner for sales of its copper concentrate product from Gedabek.
Under the terms of the sales agreement Industrial Minerals SA will purchase both dry and wet copper concentrate.
For the six month period to 30 June 2014 the Company comfortably met the required Debt Service Cover Ratio with ATB.
Net debt was as follows:
31 March 2014
30 June 2014
US$ (m)
US$ (m)
ATB Agitation Plant loan balance
37.0
37.0
IBA loan balance
11.6
11.6
IBA credit line
0.6
0.7
Atlas Copco equipment finance loan
1.7
1.8
Total Loans
50.9
51.1
Cash on hand and at bank
0.5
5.1
Net Debt
50.4
46.0
**ENDS**
For further information please visit www.angloasianmining.com or contact:
Reza Vaziri
Anglo Asian Mining plc
Tel: +994 12 596 3350
Ewan Leggat
SP Angel Corporate Finance LLP
(Nomad & broker)
Tel: +44 (0) 20 3463 2260
Laura Harrison
SP Angel Corporate Finance LLP
Tel: +44 (0) 20 3463 2260
Felicity Edwards
St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst
St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 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 Azerbaijans first operating gold/copper mine, Gedabek, which commenced gold production in May 2009.
Gold production for the year ended 31 December 2013 from Gedabek totalled 52,068oz.
The Company is also developing a second mining operation within Azerbaijan, Gosha, which is 50km away from Gedabek.
Gosha is being advanced with a view to developing a high grade underground gold mine, which is expected to produce circa 15,000-20,000 ounces of gold per annum once in full production.
Due to the proximity of Gosha to Gedabek, gold ore produced at Gosha will be processed at Anglo Asians Gedabek plant.
Anglo Asians Company production target for FY 2014 stands at 62,000-67,000 ounces of gold.
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 order to fulfil its expansion ambitions and become a mid-tier gold and base metal production company.
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Charlotte Heap
St Brides Media & Finance Ltd
3 St Michaels Alley, London, EC3V 9DS
www.stbridesmedia.co.uk
Tel: 020 7236 1177 | Mob: 07771862283 | Twitter: @StBrides1