Numis: Anglo Asian Mining (Buy, TP: 24p) We turn positive on smooth production ramp-up Anglo Asian appears to have put to bed most of the technical problems surrounding the commissioning of its Gedabeck gold/copper mine in Azerbaijan.

Record production in March 2010 of 6,167oz is accompanied by a revised full-year 2010 production forecast of 53,500 oz gold.

This is well above our current 43,000oz estimate and bodes well for the future of the operation.

As a consequence we have updated our forecast in line with guidance and, based on the reduced technical risk, removed the 30% risk-weighting to our NPV-based target price.

We therefore upgrade our recommendation to Buy from Hold and our target price to 24p from 11p.

* Production: The new cone crushers, installed in September last year, appear to be operating well and monthly production rates are now ramping up smoothly to the target 75,000 tonnes per month (around 2,500 tonnes per day).

The new stacking system, due to be installed and operational in May 2010, is expected to consolidate these improvements and we believe, in time, to allow these rates to be exceeded. * Financing: The outstanding $998,663 loan provided to the company by CEO Reza Vaziri has been rescheduled to be re-paid in one instalment on 30 November 2010.

Repayment was originally due from 20% of net gold sales with a final repayment date of 7 February 2010.

The loan carries an all inclusive annual interest rate of 8%.
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