🕐23.06.09 - 16:59 Uhr

Numis: Anglo Asian Mining (Buy, TP: 21) 2008 results in line



Numis: Anglo Asian Mining (Buy, TP: 21) 2008 results in line Anglo Asians 2008 final results are in line with our expectations.

The company poured first gold at its Gedabek mine in Azerbaijan at the end of May and expects first gold sales by the end of June.

With the US$9.4m debt funding announced last month we believe the company has sufficient working capital to ensure the open pit, heap-leach operation reaches steady state, and to fund further exploration at Gedabek and on its other exploration licences.

The company has reiterated its 70,000oz gold production target for the first full year of operations and we believe the current resource at Gedabek is sufficient to produce at least 300,000oz gold over the next six years.

The company expects to capitalise on its first mover advantage in Azerbaijan and leverage its exploration position.

We maintain out 21p target price and, with recent weakness in the share price, we updrage our our recommendation to a Buy.
* Mining operations: As a heap leach operation it will be a while before the recoveries and operating costs can be confirmed - and much will depend on the successful operation of the SART process for the recovery of by-product copper.

The company expects the production of first copper in Q3 2009.

We await further information on the expected production rates and cash costs - but with the by-product copper and silver production overall C1 costs should be relatively low. * Cash position: We expect the delay in first production to put short-term constraints on the companys cash position.

However, Anglo Asian has agreed a further US$1.5m working capital facility, if required, with the International Bank of Azerbaijan.

In addition, Reza Vazari (director and a significant shareholder) has confirmed that he would be willing to provide additional funding if required.

The company expects to be able to fully repay its current debt by Q2 2013.
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