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AAZ Anglo Asian Mining share chat

Discussion in 'General Share Chat (AAZ)' started by Groucho, Sep 16, 2018.

  1. Groucho

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    Hardman & Co Research
    Hardman & Co Research: Anglo Asian Mining (AAZ): Prodigious cashflow AND bigger 'system' potential

    19-Jun-2019 / 13:00 GMT/BST


    Hardman & Co Research: Prodigious cashflow AND bigger "system" potential

    Anglo Asian Mining (AAZ) is a highly cash-generative miner of gold, silver and copper from four mines in Azerbaijan, where it has close ties to the government. In 2018, it produced 83,376 of gold equivalent ounces (GEOs), paid its first dividend and had net cash on its balance sheet. At this stage, we have made the highly conservative assumption of no production beyond 2025. Nevertheless, our DCF valuation of 156p reflects AAZ's prodigious cash generation and gold/copper stockpiles. Indeed, we estimate that the company's aggregate underlying free cashflow during 2019-25 will be in excess of its current market capitalisation and the annual free cash yield will average 16.2%. Please click here for the full report:

    https://www.hardmanandco.com/research/corporate-research/prodigious-cashflow-and-bigger-system-potential/
     
  2. Groucho

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    20 June 2019


    Anglo Asian Mining plc ("Anglo Asian" or the "Company")

    AGM Statement


    Anglo Asian Mining plc, the AIM-listed gold, copper and silver producer focused inAzerbaijan, is holding its annual general meeting ("AGM") at 10.30 am today at The Washington Mayfair Hotel, 5 Curzon Street, Mayfair,LondonW1J 5HE. At the meeting Reza Vaziri, the Company's CEO, will make the following statement:


    "2018 has been a year of continued progress for the Company. We have successfully executed on our strategy which is to become a leading gold, copper and silver producer inAzerbaijanand the wider region. Building on the hard work of previous years, we have continued to work diligently and for 2018 reported record production and an excellent financial performance.


    "During the year, the Company reported impressive increases in production including a 22 per cent. year on year increase in gold production to 72,798 ounces and a 17 per cent. increase in total production to 83,736 gold equivalent ounces. These increases were the result of initiatives put in place in previous years to optimise operations and which proved successful as we achieved production in the upper range of our guidance. Significantly in 2018, we further decreased our all-in sustaining cost of gold production to$541per ounce, placing Anglo Asian in the lowest quartile of global gold producers. We are confident that we will be able to maintain a healthy operational performance and have established a total production target for 2019 of up to 86,000 gold equivalent ounces.


    "We are committed to the sustainability and longevity of the business and to this end, implemented a rigorous three-year exploration programme which commenced in 2018. The programme's key objectives included updating the resource and reserve estimates at Gedabek, Gosha and Ugur in line with JORC (2012) code, as well as identifying potential new areas of mineralisation and drill targets with the potential to fast track towards production as standalone mining operations. As demonstrated by Ugur, the Company has the ability to rapidly advance discoveries into production in a short time frame. In 2018, we carried out an aerial geological survey - the first of its kind inAzerbaijan- and following this we have, as recently announced identified 31 highly prospective targets for follow up exploration. We are already seeing positive results from this survey.


    "At our AGM last year, we announced that the Board was looking to pay a maiden dividend and I am delighted that we were able to do so. In respect of 2018, the Company will pay a total dividend of sevenUnited Statescents per ordinary share. We are one of the few mining companies on AIM paying a dividend and this is testament to the robust financial performance of the Company. In 2018 we reported a 26 per cent. year on year increase in total revenues toUnited Statesdollars 90.4 millionand a profit before taxation ofUnited Statesdollars 25.2 millionrepresenting a greater than four times increase from 2017. Cash generation is a key strength of the Company and enables us to pursue development opportunities. We look forward to this cash generation continuing to underpin a sustainable dividend policy that rewards shareholders for their commitment to the Company.


    "Looking ahead, I am encouraged by recent results of our exploration activities that have successfully identified opportunities for potential future development of Gedabek and our other contract areas. We also believe Ordubad in particular is an untapped value opportunity. The last few years have been transformational for the Company and as such we now in an excellent position to move forward. I would like to take this opportunity to thank my fellow board members, our management team and employees inAzerbaijanand our shareholders for their continued support and encouragement."
     
  4. Groucho

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  5. Groucho

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    9 July 2019

    Anglo Asian Mining plc

    Payment of 2018 final dividend - sterling amount


    On 16 May 2019, the directors of Anglo Asian Mining plc announced a final dividend in respect of the year ending 31 December 2018 ofUS$0.04per ordinary sharewhich was approved at the Company's annual general meeting on the 20 June 2019.This final dividend is to be paid on 25 July 2019 to shareholders on the share register on 28 June 2019. The dividend is payable in cash in sterling to holders of ordinary shares.A scrip dividend or any other dividend reinvestment plan will not be offered by Anglo Asian Mining plc.

    The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank ofEnglandat 4pm each day from the 1 to 5 July 2019, being£1=US$1.2580. Accordingly, the amount of sterling dividend payable in cash on 25 July 2019 will be:

    3.1797 penceper ordinary share.
     
  6. Groucho

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    15 July 2019
    Anglo Asian Mining plc ("Anglo Asian" or the "Company")

    Q2 & H1 2019 Production and Operations Review


    H1 2019 Year-on-Year Production up 7 per cent. and Increase in net cash to $15.4 million


    Anglo Asian Mining plc, the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a production, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the three months to 30 June 2019 ("Q2 2019") and six months to 30 June 2019 ("H1 2019").

    Note that all references to "$" are to United States dollars.


    Overview

    · Continued improvement in total production expressed as gold equivalent ounces ("GEOs"):

    o Q2 2019 production of 19,618 GEOs up 3 per cent. compared to Q2 2018

    o H1 2019 production of 39,905 GEOs up 7 per cent. year-on-year ("y-o-y")

    · Q2 2019 production lower than Q1 2019 production by 669 GEOs mainly due to copper production reduced by 63 tonnes following planned mining of lower copper grade ore in the quarter - copper grades expected to increase in remainder of the year

    · Backlog of concentrate production now sold due to resolution of logistical issues by off-taker - gross concentrate sales of $7.6 million in Q2 2019

    · Strong cash generation with $4.6 million generated in the quarter and $9.3 million in H1 2019

    o $15.4 million net cash at 30 June 2019 ($10.8 million at 31 March 2019)


    Anglo Asian CEO Reza Vaziri commented, "This is another good quarter's production with a 7 per cent year-on-year increase in the first half compared to 2018. The production in the quarter was slightly less than the previous quarter due to the planned mining of lower grade copper ore, however, we are expecting copper grades to increase for the rest of the year. The logistical issues in selling concentrate reported last quarter were resolved and the Company had gross sales of $7.6 million of concentrate in the quarter. The Company continues to be a strong cash generator and our net cash increased by $4.6 million in the quarter."


    Production Overview

    Q2 2019

    · Three per cent. y-o-y increase in total production to 19,618 GEOs (Q2 2018: 19,042 ounces)

    · Gold production totalled 17,149 ounces (Q2 2018: 16,764 ounces):

    o 16,073 ounces contained within gold doré

    o 8 ounces from SART processing

    o 1,068 ounces from flotation

    · Copper production totalled 450 tonnes (Q2 2018: 332 tonnes):

    o 67 tonnes from SART processing

    o 383 tonnes from flotation processing

    · Silver production totalled 33,292 ounces (Q2 2018: 44,201 ounces):

    o 4,734 ounces contained within gold doré

    o 13,067 ounces from SART processing

    o 15,491 ounces from flotation

    H1 2019

    · Seven per cent. y-o-y increase in total production to 39,905 GEOs (H1 2018: 37,349 GEOs)

    · Gold production totalled 34,394 ounces (H1 2018: 33,255 ounces)

    · Copper production totalled 963 tonnes (H1 2018: 587 tonnes)

    · Silver production totalled 84,586 ounces (H1 2018: 84,785 ounces)

    · On track to achieve forecast production for FY 2019 of between 82,000 to 86,000 GEOs


    Sales overview

    · Q2 2019 gold bullion sales of 13,467 ounces at an average of $1,332 per ounce (Q2 2018: 10,822 ounces at an average of $1,307 per ounce)

    · Q2 2019 copper concentrate shipments to the customer totalled 4,007 dry metric tonnes ("dmt") with a sales value of $6.7 million (excluding Government of Azerbaijan production share) (Q2 2018: 1,736 dmt with a sales value of $4.2 million)


    Company financials

    · Net cash, being cash less interest-bearing loans and borrowing equivalents,totalled $15.4 million at 30 June 2019 ($10.8 million at 31 March 2019)


    Operations review

    The Company mined the following ore in the six months ended 30 June 2019:
    62BC69EF-9CBF-42BD-8612-AE36C329080A.jpeg

    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.


    Anglo Asian stacked 152,173 tonnes of dry crushed ore on to heap leach pads with an average gold content of 0.9 grammes per tonne of gold during Q2 2019 (Q1 2019: 127,990 tonnes with an average gold content of 0.80 grammes per tonne of gold). The Company also heap leached uncrushed Run of Mine ("ROM") ore. During Q2 2019, Anglo Asian stacked 286,163 tonnes of ROM ore on to heap leach pads with an average gold content of 0.49 grammes per tonne of gold (Q1 2019: 133,194 tonnes of ROM ore with an average gold content of 0.51 grammes per tonne of gold).


    The Company processed 176,602 dry tonnes of ore with an average gold content of 2.4 grammes per tonne of gold through the agitation leaching plant in Q2 2019 (Q1 2019: 171,211 dry tonnes with an average gold content of 2.50 grammes per tonne of gold). 131,161 dry tonnes of ore containing an average copper content of 0.46 per cent. were processed by the flotation plant in Q2 2019 (Q1 2019: 130,012 dry tonnes of ore containing an average copper content of 0.49 per cent.).


    The Company produced gold doré containing 16,073 ounces of gold and 4,734 ounces of silver at Gedabek in Q2 2019 (Q1 2019: 15,547 ounces of gold and 6,634 ounces of silver). During Q2 2019, the agitation leaching plant produced 12,810 and 3,776 ounces of gold and silver, respectively, and the heap leach operations produced 3,263 and 958 ounces of gold and silver, respectively (Q1 2019: the agitation leaching plant produced 12,649 and 5,345 ounces of gold and silver, respectively, and the heap leach operations produced 2,898 and 1,288 ounces of gold and silver, respectively).


    SART processing produced 143 dmt of copper concentrate containing 67 tonnes of copper, 8 ounces of gold and 13,067 ounces of silver in Q2 2019 (Q1 2019: 142 dmt of copper concentrate containing 63 tonnes of copper, 11 ounces of gold and 16,201 ounces of silver).


    In Q2 2019, flotation processing produced 2,252 dmt of copper concentrate containing 383 tonnes of copper, 1,068 ounces of gold and 15,491 ounces of silver (Q1 2019: 2,871 dmt of copper concentrate containing 450 tonnes of copper, 1,687 ounces of gold and 28,461 ounces of silver).


    The Company sold 4,007 dmt of copper concentrate in Q2 2019 for $6.7 million compared to 279 dmt for $0.7 million in Q1 2019 and 1,736 dmt for $4.2 million in Q2 2018 (excluding Government of Azerbaijan production share). The copper content of the total concentrate production has decreased in the year to 30 June 2019 due to the increasing proportion produced by flotation. Flotation concentrate typically has a lower percentage of copper (around 15 to 17 per cent.) compared to SART concentrate (around 45 to 55 per cent.). The backlog of concentrate which had built up in previous quarters due to logistical issues of the off-taker was sold in Q2 2019.


    Company financial review


    Net cash

    The Company had net cash at 30 June 2019 of $15.4 million, an increase of $4.6 million since 31 March 2019.
    $m
    Cash on hand and at bank 20.5
    Pasha Bank refinancing loan (5.1)

    Net cash 15.4

    The Company paid corporation taxation of $2.2 million in Q2 2019 ($3.0 million in Q1 2019).

    Anglo Asian Mining - Q2 & H1 2019 Production and Operations Review @AAZMining https://www.voxmarkets.co.uk/rns/announcement/4fc46dbd-7b52-4b8d-8ba4-16b7eb7c238d
     
  7. Groucho

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    8 August 2019

    Anglo Asian Mining plc

    H1 2019 Geological Exploration Activities

    Gedabek, Gosha and Ordubad Contract Areas



    Anglo Asian Mining PLC ("AAM" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a summary of its geological exploration activities from 1 January to 30 June 2019 ("H1 2019") at its Gedabek, Gosha and Ordubad Contract Areas. Detailed reports of the Company's work programmes and exploration results for each Contract Area can be found following the links below in each relevant section and on its website (www.angloasianmining.com).


    Highlights


    Gedabek

    · Significant progress made on ZTEM targets:

    o Primary ranking completed and exploration started over entire region

    o 325 outcrop samples collected at Korogly and Zehmet - as previously reported gold grades of up to 95.40 grammes per tonne

    o Trenching completed at Zehmet with gold grades of up to 3.44 grammes per tonne and 2.09 per cent. copper

    o Outcrop sampling commenced over an additional eight shallow epithermal/porphyry targets

    · Eight diamond drill-holes totalling 949 metres completed around the Gedabek open pit with economic gold grades intersected in all drill-holes with gold grades of up to 11.05 grammes per tonne

    · Ventilation shaft completed from the Gedabek underground tunnelling to surface which will allow for continued underground development and exploration

    · At Gadir, a total of 101 diamond drill-holes were completed comprising three deep surface exploration drill-holes, 33 underground exploration drill-holes and 65 underground drill-holes to increase stoping confidence with gold grades of up to 11.09 grammes per tonne


    Gosha

    · Mineralisation at depth confirmed in an area ("Zone 5") below an existing adit of the Gosha underground mine:

    o 1,897 metres of diamond drilling completed with gold grades of up to 5.92 grammes per tonne

    · Exploration started at a target "Khatinca" which has similar geology to the existing Gosha underground mine

    · Outcrop sampling carried out at the Gosha underground mine, Asrikchay and Khatinca - encouraging gold grades (up to 7.46 grammes per tonne) and copper grades (up to 10.32 per cent.) found at Asrikchay


    Ordubad

    · Very promising results from the drill programme at Dirnis with 18 diamond drill-holes completed totalling 3,643 metres - initial assay results returned one drill-hole with 3.8 per cent. copper and 47.64 grammes per tonne silver at a depth of 102 to 103 metres

    · Drilling programme completed at the gold target "Keleki" with 10 diamond drill-holes completed totalling 1,765 metres - awaiting results

    · Geochemical sampling study conducted at Destabashi, a new copper target including the collection of 244 samples and detailed geological mapping over a 4.2 square kilometre region -awaiting results


    Anglo Asian Director of Geology & Mining, Stephen Westhead, commented, "Exploration at all three Contract Areas has delivered very positive results. At Gedabek, we continue to evaluate the ZTEM anomalies with results showing mineralisation both on or near surface. Additionally, the continued exploration near our existing mines is still giving excellent results which should prolong their mine life. With the completion of the ventilation shaft from the Gedabek underground to surface, work can continue with the tunnelling allowing for the continuation of the underground exploration plan.

    "The near mine exploration at Gosha provides encouraging results especially the gold grades found in "Zone 5" below an existing adit in our underground mine. Robust grades have also been found in outcrop samples at Asrikchay. We are also commencing work on a target at Gosha, "Khatinca" which has very favourable geology. It is staring to become clear that Gosha is an underexplored property with excellent potential. The Ordubad area also continues to yield significant copper and gold results, further demonstrating the important potential of this region using modern exploration techniques.

    "We now have in place a programme to comprehensively explore all our three Contract Areas which is proceeding at a fast pace. Overall, the exploration and mining geology team continue to be enthusiastic at the potential to increase future reserves and grow the production outlook. This work is clearly demonstrating its promise to increase shareholder value."

    Anglo Asian Mining - H1 2019 Geological Exploration Activities @AAZMining https://www.voxmarkets.co.uk/rns/announcement/0f476831-0f9c-4ea6-ad17-987a2eb68499
     
  8. Groucho

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    18 September 2019


    Anglo Asian Mining plc

    Interim Results for the six-months to 30 June 2019

    Profit before tax increased to $10.3 million

    Interim dividend for 2019 increased to US cents 3.50 per ordinary share


    Anglo Asian Mining plc ("Anglo Asian", the "Company" or the "Group"), the AIM listed gold, copper and silver producer in Azerbaijan, is pleased to announce its interim results for the six-month period ended 30 June 2019 ("H1 2019"). Note that all references to "$" and "cents" are to United States dollars and cents.


    The Company also announces its interim dividend in respect of the year ending 31 December 2019 of US cents 3.50 per ordinary share payable on 31 October 2019 to shareholders on record on 4 October 2019. The 2019 interim dividend is a 17 per cent. increase on the interim dividend for 2018.


    An updated corporate presentation including the Company's H1 2019 financial results will be available later today on the Anglo Asian web-site: http://www.angloasianmining.com.


    Highlights

    · Continued improvement in H1 2019 total production expressed as gold equivalent ounces ("GEOs") with a seven per cent. year-on-year ("y-o-y") increase to 39,905 GEOs (H1 2018: 37,349 GEOs):

    o Gold production totalled 34,349 ounces (H1 2018: 33,255 ounces)

    o Copper production of 963 tonnes (H1 2018: 587 tonnes)

    o Silver production totalled 84,586 ounces (H1 2018: 84,785 ounces)

    · Gold bullion sales in H1 2019 of 26,588 ounces (H1 2018: 25,778 ounces) completed at the same average price of $1,319 per ounce as H1 2018

    · All-in sustaining cost of gold production of $603 per ounce (H1 2018: $543 per ounce)

    · Total production target for FY 2019 maintained at between 82,000 and 86,000 GEOs when calculated using metal prices at 1 January 2019

    · Growth strategy remains on track with successful H1 2019 results from the geological exploration programme announced on 8 August 2019, continuing to confirm significant upside potential:

    o Significant progress on ZTEM targets at Gedabek

    o Mineralisation at depth confirmed in an area below an existing adit of the Gosha underground mine

    o Very promising drill programme results at Ordubad


    Financials

    · Interim dividend of US cents 3.50 per ordinary share declared reflecting the strong cash position and low level of debt

    · Cash of $20.4 million and debt of $5.2 million equaling net cash of $15.2 million at 30 June 2019 (31 December 2018: net cash of $6.1 million)

    · Total revenues in H1 2019 of $43.3 million representing an eight per cent. y-o-y increase on the previous year (H1 2018: $40.0 million)

    · Profit before taxation in H1 2019 of $10.3 million (H1 2018: $8.1 million)

    · Net cash flow from operating activities in H1 2019 of $14.5 million, $10.0 million lower than H1 2018 due to income tax paid of $5.2 million and an increase in inventories of $4.7 million:

    o Increase in inventories included increased gold in circuit due to expanding ROM heap leaching


    Chairman's Statement


    Review of 2019 to date

    I am pleased to report on another highly satisfactory six months for Anglo Asian. The Company performed as planned and its excellent financial performance in 2018 continued into 2019 with both revenue and profit increasing compared to the previous half year. Cash generation remains strong and I am delighted to declare a dividend of US cents 3.50 per ordinary share as an interim dividend for the year ending 31 December 2019.


    Anglo Asian's main operation at Gedabek is now well-developed and provides stable cash generation for the Group. This cash flow enables the Company to both pay dividends to shareholders and pursue its ambitions to grow the Group into a sustainable, mid-tier gold, copper and silver producer. The JORC reporting for the three mines at Gedabek was completed in the period which, together with recent exploration results, has extended the combined mine life until at least 2024.


    A key pillar of the Company's growth strategy is to fully exploit the potential of the over 1,000 square kilometers of land within its three contract areas which the Group believes provide significant upside potential. Last year, the Company embarked upon a comprehensive three-year geological exploration programme which has already yielded numerous targets and potential deposits, which are under active investigation. This demonstrates that the Company is now delivering on its growth strategy.


    Operational review

    39,905 GEOs were produced in the six months to 30 June 2019 ("H1 2019"), a seven per cent. increase compared to H1 2018. Gold production increased to 34,349 ounces compared to 33,255 ounces in H1 2018 and copper production also increased to 963 tonnes from 587 tonnes in H1 2018. The majority of the increase in gold production and the increase in copper production was due to the independent operation of the Company's flotation plant throughout H1 2019. Since the installation of its dedicated jaw crusher in July 2018, the flotation plant has operated in parallel with the Company's agitation leaching plant which has increased the Company's overall processing capacity.


    The Company signed an off-take agreement in late 2018 for flotation concentrate with Trafigura PTE. A second dorérefining contract was signed in 2018 with Argor-Heraeus SA in Switzerland and a portion of gold doré production is now shipped to them. These two new contracts have enabled the Group to obtain better commercial terms for both concentrate sales and gold refining.


    The Company's tailings dam was inspected in early June 2019 by Knight Piésold Limited ("KP"), a leading environmental engineering company. KP's initial observations were that the dam had been properly constructed, showed no visible signs of instability and that seepage is properly controlled. Various minor recommendations, including moving the location of the tailings discharge pipes to better spread sediment within the dam, were made to ensure that the dam operates to best practice. These are now being implemented. KP is now modelling the dam, including dynamic stability and capacity calculations, and upon completion of this work will issue their final report.


    Mineral resources and geological exploration

    The Company completed its goal of formalising its mineral resource and ore reserves for its three mines at Gedabek in early 2019. Together with recent exploration work, this provides confidence to shareholders of a combined mine life of Anglo Asian's existing mines to at least 2024.


    The geological exploration programme which commenced in 2018 is now ramping up. Over $2 million was spent on geological exploration in H1 2019 of which over $1 million was spent at Ordubad. The results so far are highly encouraging. Near mine exploration at Gedabek has revealed mineable extensions which will prolong the life of the Company's existing mines. The ZTEM aerial survey identified 20 shallow epithermal/porphyry targets, five deep epithermal targets and six porphyry targets which have been ranked and are now being investigated. Mineralisation has already been found at some of the targets.


    Work at Gosha is also encouraging as it indicates much more extensive mineralisation within the contract area, including copper. This additional mineralisation is both near to the existing Gosha underground mine and at the new targets Asrikchay and Khatinca. The Ordubad contract area continues to yield significant copper and gold results, further demonstrating the important potential of this region that is being revealed by the use of modern exploration techniques.


    The Company is continuing to vigorously investigate all of the potential targets identified within its three contract areas. The Company has a track record of rapidly developing discoveries and is confident that any new deposits can be swiftly brought into production.


    Financial results and dividend

    The Company's financial performance in H1 2019 remained strong with revenue increasing by $3.3 million to $43.3 million due to both higher gold bullion and copper sales. Profit after tax increased to $6.6 million compared to $5.1 million in H1 2018. The all-in sustaining cost ("AISC") per ounce of gold produced increased in H1 2019 to $603 per ounce reflecting cash costs being higher by $2.7 million due to mining a higher volume of ore. Some of the additional ore mined has been stockpiled for use in 2020 which will reduce the mining costs next year. Anglo Asian still remains a lowest quartile cost producer.


    Revenues continued to be subject to an effective royalty of 12.75 per cent. in H1 2019. The Company anticipates that this effective royalty rate will continue until at least 2023 and further details are set out in the financial review below.


    The Company continues not to hedge gold sales. However, the Company's strong balance sheet gives it flexibility in timing the sales of its gold bullion to take advantage of any "spikes" in the price of gold. This enabled the Company to sell its gold bullion in H1 2019 at an average price of $1,319 per ounce compared to the average market price of gold in H1 2019 of $1,306 per ounce.


    The Company's balance sheet continued to strengthen in H1 2019. Cash flow from operations was $14.6 million, a decrease of $10.0 million compared to $24.6 million in H1 2018. However, this decrease was mainly due to an increase in gold inventory in circuit due to expanding the ROM heap leach operations and the commencement of the payment of corporation taxation. Corporation taxation of $5.2 million was paid in H1 2019 as the Company had utilised all its tax losses in 2018. Despite the lower cash generation, the Company had $20.4 million of cash at 30 June 2019 with net cash increasing by $9.1 million to $15.2 million in the half year. The Company now has a low level of debt with the $5.1 million balance of the Pasha Bank refinancing loan currently being the only outstanding loan payable.


    The announcement of the interim dividend of US cents 3.50 per ordinary share highlights the continued financial strength of the Company and its ability to generate returns to shareholders.


    Outlook

    Anglo Asian remains in an enviable position to continue its progression and deliver on its stated growth strategy. Gedabek's operations generate stable cash flow which provides funds for both investment and to pay dividends. The Company's solid balance sheet and excellent relationships with banks in Azerbaijan and elsewhere means loan finance can be easily obtained if required. Together, these advantages mean the Company has ample financial resources to seize any suitable opportunities that may arise.


    The Company's geological exploration programme is now well underway. It is both extending the life of Anglo Asian's existing mines and yielding new discoveries. The Group is continuing this programme with vigour with the aim of identifying deposits which can be commercially exploited. The Company is also evaluating several opportunities outside Azerbaijan and will pursue any of these which it believes can be commercially successful.


    Anglo Asian continues its concerted effort to meet with many existing and potential investors and the Company believes it has a strong reputation as an attractive investment opportunity. It has also recently launched a new web-site which is in line with today's standards and more accurately represents the Company's ambitions and growth trajectory.


    The Company set a production target of between 82,000 and 86,000 GEOs for 2019 calculated using metal prices at the beginning of 2019. However, the increase in the price of gold and decrease in the price of copper since 1 January 2019 have resulted in one tonne of copper decreasing in value from approximately 4.7 to 3.8 GEOs. We are on track to achieve our initial production target, but when translated into GEOs at actual metal prices, the FY 2019 forecast outcome is now around the bottom end of the guidance range. I look forward to updating shareholders with the Company's progress in the coming months.


    Anglo Asian has continued to build on its success of previous years. It now has very solid foundations and an exciting growth strategy, driven by exploration, to develop your Company into a mid-tier gold, copper and silver producer. It is therefore with continued optimism that I look forward to the remainder of 2019 and beyond.


    Appreciation

    I would like to take this opportunity to thank the employees of Anglo Asian, our partners, the Government of Azerbaijan and our advisors for their continued support as we deliver on our strategy of becoming a leading mid-tier gold, copper and silver producer. Finally, I wish to sincerely thank our shareholders for their continued investment and support in Anglo Asian. I look forward to sharing the successes of the remainder of 2019 with you.


    Khosrow Zamani

    Non-executive Chairman

    17 September 2019


    Dividend

    An interim dividend, in respect of the year ending 31 December 2019, of US cents 3.50 per ordinary share will be paid gross on 31 October 2019 to shareholders that are on the shareholders record at the record date of 4 October 2019. The shares will go ex-dividend on 3 October 2019. All dividends will be paid in cash and a scrip dividend or other dividend reinvestment plan will not be offered by the Company.


    The dividend will be payable in pounds sterling. The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank of England at 16:00 BST each day from the 7 to 11 October 2019.


    Corporate Governance

    A statement of the Company's compliance with the ten principles of corporate governance in the Quoted Companies Alliance Corporate Governance Code ('QCA Code') can be found on the Company's website at http://www.angloasianmining.com/media/pdf/CORPORATE_GOVERNANCE.pdf
     
  10. Groucho

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    15 October 2019

    Anglo Asian Mining plc

    Q3 2019 Production and Operations review


    Total production for YTD Q3 2019 of 60,122 GEOs and net cash of 19.1 million

    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, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the three and nine months to 30 September 2019 ("Q3 2019" and "YTD Q3 2019" respectively).


    Note that all references to "$" are to United States dollars.


    Overview

    · Continued improvement in 2019 production expressed as gold equivalent ounces ("GEOs") with a three per cent. quarter-on-quarter increase to 20,227 GEOs (Q2 2019: 19,618 GEOs)

    · YTD Q3 2019 total production of 60,122 GEOs (YTD Q3 2018: 61,761 GEOs)

    · Strong cash generation with $8.5 million generated in the quarter (H1 2019: $9.3 million)

    o Cash generation in YTD Q3 2019 of $17.6 million

    o $19.1 million net cash at 30 September 2019 ($15.2 million at 30 June 2019)

    · Significant increase in average price of gold bullion sold in Q3 2019 to $1,513 per ounce (H1 2019: $1,319per ounce)

    · Full Year 2019 ("FY 2019") Production guidance maintained at lower end of 82,000 to 86,000 GEOs

    · As announced on 18 September 2019, an interim dividend of US$0.035 per share will be paid gross in respect of the year ending 31 December 2019 to shareholders on 31 October 2019


    Anglo Asian CEO Reza Vaziri commented: "We are delighted to report another successful quarter for the Company with production increasing compared to the previous quarter and strong cash generation helped by the recent increase in the gold price. Production guidance is maintained at the lower end of 82,000 to 86,000 gold equivalent ounces due to the decrease in copper price in relation to the increase in gold price since the start of 2019."


    Production Overview


    Q3 2019

    · Total production of 20,227 GEOs (Q3 2018: 24,412 ounces)

    · Gold production of 17,804 ounces (Q3 2018: 21,318 ounces):

    o 16,626 ounces contained within gold doré

    o 10 ounces from SART processing

    o 1,168 ounces from flotation

    · Copper production totalled 521 tonnes (Q3 2018: 470 tonnes):

    o 71 tonnes from sulfidisation, acidification, recycling and thickening ("SART") processing

    o 450 tonnes from flotation processing

    · Silver production totalled 33,354 ounces (Q3 2018: 59,346 ounces):

    o 4,423 ounces contained within gold doré

    o 11,789 ounces from SART processing

    o 17,142 ounces from flotation


    YTD Q3 2019

    · Total production of 60,122 GEOs (YTD Q3 2018: 61,761 GEOs)

    · Gold production of 52,198 ounces (YTD Q3 2018: 54,573 ounces)

    · Copper production totalled 1,478 tonnes (YTD Q3 2018: 1,057 tonnes)

    · Silver production totalled 117,708 ounces (YTD Q3 2018: 144,362 ounces)

    · Forecast production for FY 2019 at the lower end of 82,000 to 86,000 GEOs


    Sales

    · Q3 2019 gold bullion sales of 14,894 ounces at an average of $1,513 per ounce (Q2 2019 gold bullion sales of 13,467 ounces at an average of $1,332 per ounce)

    · Q3 2019 copper concentrate shipments to the customer totalled 2,255 dry metric tonnes ("dmt") with a sales value of $3.4 million (excluding Government of Azerbaijan profit share) (Q2 2019: 4,007 dmt with a sales value of $6.7 million)


    Company financials

    · Net cash, being cash and cash equivalents less interest-bearing loans and borrowings, totalled $19.1 million at 30 September 2019 (Net cash of $15.2 million at 30 June 2019)

    · Cash generation before payment of final dividend for 2018 in Q3 2019 of $8.5 million with $17.6 million generated YTD Q3 2019

    Anglo Asian Mining - Q3 2019 Production and Operations review @AAZMining https://www.voxmarkets.co.uk/rns/announcement/aaf7d396-2938-4b2e-ab3d-cdb324d2ae04
     
  12. Groucho

    Groucho Member

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    4 November 2019

    Anglo Asian Mining plc

    New Gold / Copper and Gold Mineral Occurrences discovered within its Gedabek Contract Area

    Avshancli and Gilar



    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce discovery of a new gold-copper mineral occurrence, "Avshancli" and a new gold mineral occurrence "Gilar" in its northeast region of its Gedabek Contract Area ("Gedabek CA") in western Azerbaijan. These discoveries are a result of the Company's regional exploration field mapping programme that is concentrating on following-up structural trends as focused by the ZTEM geophysics programme. A detailed report on Avshancli and Gilar can be found at the following links https://www.angloasianmining.com/wp...w_Discovery_Announcement_Avshancli-FILE_1.pdf, https://www.angloasianmining.com/wp...1/New_Discovery_Announcement_Gilar-FILE_2.pdf and on the Company's website (www.angloasianmining.com).


    Overview


    Avshancli

    · Gold-copper mineral occurrence approximately 10.5 kilometres northeast of the Company's Gedabek open pit operation

    · Discoveries made through follow-up on field mapping between two ZTEM targets

    · Three zones of mineralisation:

    o Two gold-copper zones (Avshancli-1 and Avshancli-2)

    o One copper-gold zone (Avshancli-3)

    · Copper present in outcrop surface samples taken over the district, yielding grades of up to 3.56 per cent., in conjunction with good gold grades

    · Trench sampling at Avshancli-1 include 7.0 metres at 3.60 grammes per tonne gold and 0.40 per cent. copper (from 4.0 metres), and 1.0 metre at 8.85 grammes per tonne gold

    · Soil geochemical exploration planned over Avshancli-1 to define mineral zoning

    · Core drilling has commenced at Avshancli-1 - awaiting assay results but some core samples show visual mineralisation


    Gilar

    · Gold mineralisation occurrence two kilometres south of the Avshancli-1 mineral occurrence

    · Mineral occurrence is a continuous quartz vein, with a surface strike length of around 500 metres

    · Preliminary field mapping completed upon discovery

    · 72 outcrop samples obtained both of the quartz vein and surrounding host rock

    · Two outcrops of mineralisation, with a 'blind zone' in between the two

    · Significant gold intercepts include 11.84 grammes per tonne of gold from the North Zone and 16.02 grammes per tonne gold from the South Zone.


    Reza Vaziri, CEO, commented:"We are delighted to report the discovery of the two additional mineral occurrences within the Gedabek contract area, Avshancli and Gilar. These discoveries demonstrate our belief in the further potential of the Gedabek contract area and the effectiveness of our geological exploration programme.

    "The Company is evaluating the work necessary to produce JORC estimates of the new discoveries and to determine the best way to commercially exploit them and I look forward to updating shareholders on our progress."


    Stephen Westhead, Director of Geology and Mining, commented: "The two discoveries were a result of the follow-up ZTEM field geological mapping and surface outcrop and float sampling programme carried out in the third quarter of 2019.

    "Avshancli is another exciting discovery in the Gedabek contract area. The discovery consists of three zones, all of which show the presence of gold and copper mineralisation. Surface geological work and trenching over the area has given highly encouraging results. Drilling has begun at Avshancli-1 and we are awaiting assay results. However, mineralisation can be visually seen in lengths of core from both drill holes. We are now working towards mapping the three-dimensional geology of the area.

    "Gilar is also an exciting quartz vein discovery. Outcrop sampling has returned excellent gold grade results and we are proceeding to implement a drill programme to further define the discovery."

    Anglo Asian Mining - Q3 2019 Geological Exploration Activities @AAZMining https://www.voxmarkets.co.uk/rns/announcement/1acdccba-bc77-47f7-b0a9-af4f1f05ba5e
     
  13. Groucho

    Groucho Member

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    14 January 2020


    Anglo Asian Mining plc

    Quarter 4 and Full Year 2019 Production and Operations review


    Full year production of 82,795 gold equivalent ounces calculated at budgeted prices and net cash of $21.2 million at 31 December 2019


    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused on Azerbaijan, is pleased to provide a production, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the three months to 31 December 2019 ("Q4 2019") and the year ended 31 December 2019 ("FY 2019").


    Note that all references to "$" are to United States dollars.


    Overview

    · Record revenues anticipated for FY 2019 in excess of $90.0 million driven by sustained gold and increased copper production and strong commodity prices

    · Strong cash generation of $31.3 million before payment of corporation taxes and dividends driven by strong sales and continued operational efficiencies as one of the lowest cash cost gold producers

    o Net cash increased to $21.1 million at the end of December 2019 from $6.1 million at the beginning of the year

    o Company will make its final debt repayment in early February 2020 delivering on its strategic plan to be debt free

    · 82,795 gold equivalent ounces ("GEOs") produced during FY 2019 calculated using budgeted metal prices

    o Reportable GEOs marginally lower at 81,399 due to the increase in the market price of gold relative to the market price of copper during the year


    Anglo Asian CEO Reza Vaziri commented:

    "We have had another strong year, delivering production in line with expectations and also making good progress with our exploration programme. We report our production in gold equivalent ounces which have reduced due to the increase in the market price of gold relative to the market price of copper during the year. Our production calculated as gold equivalent ounces using our budgeted metal prices was 82,795 ounces and within our original production forecast.

    "The Company's financial performance continues to be exceptional. We have increased net cash in 2019 by $15.1 million, notwithstanding paying dividends of $8.7 million and corporation taxes of $7.5 million in the year. The Company will achieve the significant milestone of becoming debt free early next month when the final installment of the refinancing loan is repaid. This strong cash generation will allow the Company to continue to enhance our announced dividend policy.

    "The Company is in a strong operational position and robust financial health as we move into 2020. I look forward to updating you on the progress of our exploration programme which we anticipate releasing within quarter one and other activities which the Company will be carrying out during the rest of the year."


    Production Overview


    Q4 2019

    · Three per cent. year on year ("y-o-y") decrease in total production to 21,284 GEOs (Q4 2018: 21,945 ounces)

    · Copper production totalled 729 tonnes (Q4 2018: 588 tonnes)

    o 113 tonnes from SART processing

    o 616 tonnes from flotation

    · Gold production totalled 17,907 ounces (Q4 2018: 18,209 ounces):

    o 15,912 ounces contained within gold doré

    o 16 ounces from SART processing

    o 1,979 ounces from flotation

    · Silver production totalled 41,686 ounces (Q4 2018: 65,822 ounces):

    o 3,880 ounces contained within gold doré

    o 11,159 ounces from SART processing

    o 26,647 ounces from flotation


    FY 2019

    · Total production of 82,795 GEOs (FY 2018: 83,736 GEOs) at budgeted metal prices (81,399 GEOs at actual metal prices)

    · 34 per cent y-o-y increase in copper production to 2,210 tonnes (FY 2018: 1,645 tonnes)

    · Four per cent. y-o-y decrease in gold production to 70,098 ounces (FY 2018: 72,798 ounces)

    · Silver production totalled 159,356 ounces (FY 2018: 210,184 ounces)


    Sales


    Q4 2019

    · Q4 2019 gold bullion sales of 12,509 ounces at an average of $1,481 per ounce (Q3 2019 gold bullion sales of 14,894 ounces at an average of $1,513 per ounce)

    · Q4 2019 copper concentrate shipments to the customer totalled 3,723 dry metric tonnes ("dmt") with a sales value of $6.9 million (excluding Government of Azerbaijan profit share) (Q3 2019: 2,255 dmt with a sales value of $3.4 million)

    FY 2019

    · FY 2019 gold bullion sales of 54,061 ounces at an average of $1,410 per ounce (FY 2018 gold bullion sales of 59,481 ounces at an average of $1,265 per ounce)

    · FY 2019 copper concentrate shipments to the customer totaled 10,264 dmt with a sales value of $17.9 million (excluding Government of Azerbaijan profit share) (FY 2018: 7,675 dmt with a sales value of $15.4 million)


    Company financials

    · Net cash, being cash and cash equivalents less interest-bearing loans and borrowings, totalled $21.2 million at 31 December 2019 (Net cash of $19.1 million at 30 September 2019 and $6.1 million at 1 January 2019)

    Anglo Asian Mining - Q4 & Full Year 2019 Production & Operations Review @AAZMining https://www.voxmarkets.co.uk/rns/announcement/cae3b0ac-4bd0-41ed-8c3c-aa147c054fdc
     
  14. Groucho

    Groucho Member

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    12 February 2020

    Anglo Asian Mining plc

    Anglo Asian reaches debt free milestone


    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused on Azerbaijan, is pleased to announce that the Company has made the final repayment of its bank loan finance and is now debt free.


    Anglo Asian completed a refinancing loan with Pasha Bank for $15 million ($13.5 million drawn down) at a seven per cent. interest rate per annum in February 2018. On 10 February 2020, the Company paid the final instalment of this refinancing loan and its balance sheet is now debt free.


    All references to "$" are to the United States dollar.


    Anglo Asian CEO Reza Vaziri commented:

    "I am delighted to announce that the Company has made the final repayment of the Pasha Bank refinancing loan, marking the significant milestone of Anglo Asian now being debt free.


    "The facility was taken out to improve the Company's financial performance and provide operational flexibility. Given that the net debt of the Company peaked at over $50 million in 2015, this milestone is a remarkable achievement.


    "Since 2015, as well as paying off its debt, the Company has continued to invest in its business, embarked on a three-year exploration programme at its contract areas, commenced payment of regular dividends and built up a significant holding of cash. This amply demonstrates the robust cash generation of the Company.


    "The financial flexibility of being debt free allows Anglo Asian to focus on the growth of the business which I look forward to updating the market on as and when appropriate."
     
  15. Groucho

    Groucho Member

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    24 February 2020

    Anglo Asian Mining plc

    Overall Progress of Exploration Programme

    Planned Exploration Work for 2020



    Anglo Asian Mining PLC ("AAM" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a summary of the overall progress of its exploration programme. The Company also provides details of its planned exploration in 2020 at its Contract Areas ("CA").

    Highlights

    Gedabek

    · Work defining further mineable lateral and down-dip mineralisation at Gadir is ongoing and showing good results

    · The tunnel development towards the mineralisation target below the Gedabek open pit is advancing at a good pace

    o The tunnel will be extended to enable the construction of drill chambers to test the down-dip extensions

    o The very important milestone of extending the tunnel from Pit four to Pit six to be achieved in 2020

    · Publication planned of new Resource and Reserves statements for Gedabek open pit in 2020

    · Follow-up geophysics planned on the exciting copper mineralisation intersections adjacent to the Ugur deposit

    · Ground-based geophysics at Avshancli to be carried out to target drilling for resource estimation

    · Further exploration at mineralisation occurrences at Söyüdlü, Maarif and Bittibulag in 2020

    Gosha

    · Recent early stage exploration of Gosha fully supports the case for further exploration

    · Further work planned in 2020

    o Drill programme for Asrikchay as well as reinterpretation of electrical geophysics to target polymetallic mineralisation

    o Investigation of subsurface potential beneath Gosha

    o Surface core drilling to test targets outside of 'Zone 5'

    ·

    Ordubad

    · Work at Ordubad is extremely encouraging with significant grades intersected at both Dirnis and Keleki

    o Further surface geological mapping, trenching and sampling focused around Aylis, Dirnis, Keleki and Urchurdag planned

    · Future drill locations to be determined through geological modelling and mineral targeting with the aim to prioritise locations for resource drilling

    · Preparation of a new geological map for the Ordubad CA underway

    · Drilling planned between Shakardara and Piyazbashi, Aylis, and copper targets near Dirnis, focusing on copper and gold structural targets



    Stephen Westhead, Director of Geology & Mining, commented: "I am delighted to provide both an overview of the progress of our exploration programme to date and the work planned for the rest of this year. Overall, the work that has been carried out at our three contract areas over the past year has been highly encouraging. In 2020, we will actively continue our exploration programmes to capitalise on the significant potential upside which we believe exists across our portfolio. We look forward to sharing with you the results of our 2020 work programmes and are confident that we will expand our resources and extend the footprint of our operations."

    Gedabek CA

    Work defining the lateral and down-dip mineralisation at the Gadir underground mine is ongoing and further mineable extensions are being discovered. The tunnel development from Gadir towards the target mineralisation below the Gedabek open pit is advancing at a good pace. The tunnel is currently extended to about 120 metres below the pit floor at the northern part of the Gedabek open pit (Pit number four). Drill chambers to test the down-dip extensions have also been constructed. The ventilation system is also in place, which will allow underground drilling to commence once the tunnelling work for the cross-cut tunnels and drill chambers is complete.

    It is planned that in 2020, a very important milestone in the tunnel development of Gedabek underground will be achieved, namely, the underground tunnelling will be extended from Pit four to Pit six. This is the targeted area of mineralisation. As in previous years, efforts will also continue to expand the reserve footprint of current operations, with the planned publication in 2020 of an update of the Gedabek open pit Resource and Reserves.

    Exploration work continues in the vicinity of the Ugur mine. The results of drill holes adjacent to the Ugur deposit are especially exciting with intersections at 25 metres of nearly two per cent. copper. This will be the focus of geophysical follow up in 2020.

    Exploration within the wider region of the Gedabek CA continues to find both gold and copper at near-surface. Work will continue at the high-priority targets of Avshancli (including zones 1 to 3) and Gilar. Avshancli covers a large area and both trenching and drilling has identified zones of good to exceptional grade mineralisation. It is intended to carry out ground-based geophysics to further understand the 3D geometry and continuity of the system to target drilling for resource estimation. A reinterpretation of the aerial survey ('ZTEM') results is providing geological field data to better correlate anomalies with actual sample data. This work will be correlated with the WorldView-3® satellite images to focus on areas that geologically can host mineralisation. The Gedabek CA continues to show very high prospective mineralisation to provide further resources to grow shareholder value.

    Further exploration activity is planned during 2020 at other known mineralisation occurrences, namely the gold potential at Söyüdlü, the copper potential at Maarif and the copper and gold potential at Bittibulag.

    Gosha CA

    The Gosha CA has regions showing several differing styles of mineralisation, including vein gold and polymetallic mineralisation as found at Asrikchay. A reinterpretation of the electrical geophysics survey conducted at Asrikchay will be used for drill hole positioning to target the polymetallic mineralisation. Exploration of the Gosha CA is still at an early stage, but the presence of a gold mine, surface gold mineralisation and mineralised drill intersections all support the case for further exploration and the potential for resource development.

    Given the significant mineral potential of the Gosha CA, a programme of work has been developed for 2020 to gain an understanding of the subsurface beneath the existing Gosha mine and to continue to expand exploration. Further work, predominantly diamond drilling, is planned to explore other targets away from 'Zone 5' and an additional drill programme is also planned for Asrikchay. Preliminary wireframing of the geology beneath Asrikchay is ongoing and will be validated against the second phase of drilling.

    Ordubad CA

    The data obtained from drilling in the Ordubad CA is extremely encouraging. Significant grades have been intersected in both Dirnis and Keleki. Geological modelling and mineral targeting of the region is ongoing to identify drilling locations to test the presence and extent of mineralising systems and associated features such as lithocaps, with the aim to prioritise locations for resource drilling. It is apparent that the copper and gold upside potential is significant, and the geological team continue to prioritise targets for resource evaluation to create shareholder value.

    A programme of work has been developed to further understand the overall geological framework of the mineralisation genesis at Ordubad and to begin to follow up on the previously reported geology. Work continuing into 2020 includes further visits by geologists from the Natural History Museum (London) following up fieldwork to expand mapping, geochemical data interpretation, drill core interpretation and additional sampling. The preparation of a new geological map for the Ordubad CA is planned for Q1 2020 based on WorldView-3® remote sensing satellite imagery, in-house geochemical results and field mapping. Further trenching and drilling will be carried out to validate the findings. The acquisition of additional WorldView-3® remote sensing satellite imagery will be considered covering areas where data were not collected in the first acquisition.

    Further surface geological mapping, trenching and sampling work will be carried out around Aylis, Dirnis, Keleki and Urchurdag. In 2020, the Company plans 1,000 metres of trenching, 200 stream sediment sampling points, 600 outcrop samples and 2,500 litho-geochemical analyses. A ground-based induced polarisation ("IP") geophysics survey is also planned to cover the highest ranked target. A provisional total of 7,200 metres of drilling is also scheduled for the area between Shakardara and Piyazbashi, Aylis, and copper targets near Dirnis, focusing on copper and gold structural targets. This drilling will be following up on the exceptional gold grades returned by the 2019 drill programme. The region around Dirnis also has significant copper potential with malachite mineralisation extensive on surface. The recent discovery of the Aylis gold veins is thought to be part of the same mineralising "hub" demonstrating the extent of mineralisation and the near surface proximity highlighting the open pit potential of the area.

    Extension of Current Mine Life

    The Company is in a very strong position with significant exploration upside at all three of its Contract Areas. The exploration programmes are being designed to be rolled out to allow time for "dovetailing" exploration results into resources and ultimately reserves to extend the current life of mine. The Company is confident that the resources will yield extensions of operations to provide significant shareholder upside from the metal in the ground being converted to revenue.

    This work is being planned to optimise the life of mine for each property within the current permitted activity timeline in the Production Sharing Agreement ("PSA"). Assuming the two available five-year extensions in the PSA are requested by AIMC for each property, the permitted production periods are as follows:
    2BF97051-276B-4BB2-8BB3-C9F953A4065C.jpeg
     
  16. Groucho

    Groucho Member

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    24 February 2020

    Anglo Asian Mining plc

    Q4 2019 Geological Exploration Activities

    Gedabek, Gosha and Ordubad Contract Areas



    Anglo Asian Mining PLC ("AAM" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a summary of its very extensive and productive geological exploration activities from 1 October to 31 December 2019 ("Q4 2019") at its Gedabek, Gosha and Ordubad Contract Areas.

    Positive results were achieved in all three contract areas. Detailed reports of the Company's work programmes including drill hole data and other exploration results for each contract area can be found following the links below in each relevant section and on the Company's website (www.angloasianmining.com).


    Highlights


    Gedabek

    · Significant exploration completed at Avshancli district - 128 outcrop samples, 296 metres of trenching and nine surface drill holes completed

    o Good reportable grades returned from both outcrop sampling and trenching

    o Nine surface drill holes of total length 1,732 metres returned good gold and copper grades

    · Small scale ground-based geophysics (magnetic) study completed at Avshancli-1 identified significant magnetic anomalies

    · Drilling at Gilar commenced with four drill holes totalling 692 metres completed

    o Presence confirmed of gold quartz vein

    · Surface and underground drilling carried out at Gadir

    o Current productive mineralisation footprint further extended both laterally and down dip

    · A further 488 metres of underground tunnelling completed from Gadir towards Gedabek underground

    · Four surface drill-holes completed at Ugur totalling 1,509 metres

    o Positive results with copper grades returned approaching two per cent.

    · Six holes totalling 1,475 metres at the Gedabek open pit and one hole of 727 metres completed at the adjacent area Duzyard

    · Work commenced at a new ZTEM target designated "Parakend Bugor" close to Korogly

    o 343 outcrop samples collected of which 45 samples show presence of gold

    · A research team from the Natural History Museum (London) visited in November 2019


    Gosha

    · Drilling programme targeting "Zone 5" was further extended with five drill-holes totalling 1,688 metres completed

    o Mineralisation confirmed at depth below 'Zone 5'

    · 89 linear metres of trenching carried out around the Gosha mine and 169 outcrop samples collected around both the Gosha mine and the wider contract area

    o Presence further confirmed of gold on the surface in area surrounding the Gosha mine



    Ordubad

    · Analysis and corroboration continues of the WorldView-3 satellite data

    · Assay results now returned from all drill-holes at Keleki and Dirnis completed in H1 2019

    o Good gold grades returned which are now being verified

    · Trenching programme commences at the new target Aylis with a total of 48 trenches completed - awaiting assay results


    Stephen Westhead, Director of Geology & Mining, commented, "Our geological work programme continues over our three contract areas. At the Gedabek contract area, work on the two new targets of Avshancli and Gilar is progressing well. Good grades at Avshancli have been returned from the surface geological work and drilling and the vein system at Gilar has been confirmed. The mineralisation footprint of the Gadir underground mine has also been further extended. Additionally, we have started investigation of a new ZTEM target, Parakend Bugor which is next to Korogly.

    "Considerable work has been carried out at Gosha which has been successful confirming the mineralisation below the existing Gosha mine. Surface geological work in the Gosha mine area also indicates the presence of gold. At Ordubad, the majority of the assay results from drilling at Keleki and Dirnis completed earlier in the year have now been received and show significant gold and copper grades. We have also started trench sampling at a new target "Aylis" at Ordubad and are beginning to corroborate the results of the WorldView-3 remote satellite sensing against data obtained from field geology.

    "The Company is also providing shareholders, in a separate announcement today, a summary of the overall progress of our exploration programme and the work planned in 2020."

    Anglo Asian Mining - Q4 2019 Geological Exploration Activities @AAZMining https://www.voxmarkets.co.uk/rns/announcement/a92ea2c4-f214-44a2-a7f5-4bf173da3dac
     
  17. Groucho

    Groucho Member

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    11 March 2020

    Anglo Asian Mining plc

    Revenue and Production Guidance for Full Year 2020


    Full Year 2020 Revenue will Significantly Increase to Over $100 million at Current Metal Prices

    Production of 75,000 to 80,000 Gold Equivalent Ounces


    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce its revenue and production guidance for the year ended 31 December 2020 ("FY 2020").


    Note that all references to "$" are to the United States Dollar.


    Overview


    · FY 2020 Revenue will significantly increase to over $100 million at current metal prices

    · Forecast metal production for FY 2020 between 75,000 to 80,000 gold equivalent ounces ("GEOs") compared to FY 2019 production of 81,399 GEOs

    · Forecast production for FY 2020 between 65,000 to 67,000 ounces of gold (FY 2019: 70,098 ounces of gold produced) and between 2,200 to 2,400 tonnes of copper (FY 2019: 2,210 tonnes of copper produced)

    · Lower gold production forecast due to a higher proportion of Gedabek open pit ore processed by agitation leaching and reduced mining from Ugur - open pit ore has lower gold grades and requires longer processing

    · GEOs production will be reported in future using both budget and actual rates to aid comparison


    Anglo Asian CEO Reza Vaziri commented, "Once again, 2020 is set to be another year of solid performance from Anglo Asian Mining with forecast revenue of over 100 million dollars and production between 75,000 to 80,000 gold equivalent ounces. Despite the marginal reduction on the previous year's production, due to lower production from the Ugur mine, the increased metal prices seen so far this year should enable the Company to maintain its financial performance as we progress into exploiting our recently reported new mineral deposits.


    "Future growth in both production and our resources and reserves continue to be highly important to Anglo Asian. We are continuing at pace with our exploration programme to identify possible further production expansion in our three existing contract areas. In this respect, we recently released the highly encouraging results from our exploration programme which highlights their potential. We also continue to look at other opportunities for expansion. I look forward to keeping the market informed of future developments."


    Assumptions

    The production guidance has been calculated using the following metal prices used for the 2020 budget:


    - Gold: $1,480 per ounce

    - Silver: $17 per ounce

    - Copper: $5,700 per tonne


    The production guidance is for 100 per cent. of the Company's production which will be subject to an expected 12.75 per cent. production share throughout 2020 with the Government of Azerbaijan under the Company's existing production sharing agreement.
     
  18. Groucho

    Groucho Member

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    26 March 2020

    Anglo Asian Mining plc

    Operational Update

    Company Continues to Maintain Production at Gedabek

    Sales of Gold Doré Temporarily Suspended


    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan provides an update on its operations and the impact of the global health emergency COVID-19 ("Coronavirus"). The Company is monitoring the situation as it evolves and is implementing precautionary measures to maintain the safety of its employees and ensure the sustainability of its business.


    Note that all references to "$" are to the United States Dollar.


    Government of Azerbaijan actions to combat the spread of Coronavirus

    The Company is continuing in operation despite the Government of the Republic of Azerbaijan (the "Government") implementing a series of restrictions to combat the spread of the Coronavirus. Air travel to and from Azerbaijan is significantly curtailed and people entering the country are subject to 14 days compulsory quarantine. Most of its land borders (including Georgia and Iran) are closed to people but freight movements are currently continuing. Domestic travel for people between towns and cities in Azerbaijan is prohibited with public transport suspended and many shops and restaurants etc. operating very limited opening hours or permanently closed.


    The Government has curtailed some activities of non-essential industries and Government departments.


    Gedabek and Gosha operations continuing

    The operations of Gedabek and Gosha are not included in the Government restrictions and continue to operate normally. Mining and production, as well as essential maintenance, are continuing. The planned raise of the tailings dam wall is also continuing. The Company is still able to procure necessary supplies from outside of Azerbaijan such as cyanide and is continuing with its exploration programme.


    Many actions to safeguard the health of its workers have been carried out. These include:


    - An extensive communication programme to educate staff about all necessary hygiene measures including use of hand sanitisers and antibacterial sprays, avoidance of social gatherings, avoiding handshaking and other physical contact;

    - Deployment of hand sanitisers and anti-bacterial sprays;

    - Access to an on-site doctor 24 hours per day;

    - Deep cleaning of office, work areas and key employee's homes;

    - Extension of mealtimes, cessation of canteen meals and provision of take-away food to staff; and

    - Redeployment of accommodation at Gosha as a camp for self-isolation for staff returning to Gedabek.


    During this time, the Company is experiencing an impact on the rotation of staff including management, due to the travel restrictions. However, actions have been put in place to enable senior staff to work remotely from home.


    Sale and shipment of product

    Although production of gold doré is continuing, the Company is currently unable to ship gold doré to its refiners in Switzerland due to cessation of air flights. The refiners have also temporarily suspended operations on the instruction of the Swiss Government. However, gold doré production through to early March has been shipped and the sale proceeds received. The Company is actively looking at other logistical, refining and sale options for gold doré should the suspension be prolonged.


    The Company continues to ship copper concentrate by road.


    Financial position of the Company remains strong

    The Company's financial position is strong with approximately $25 million in cash and no debt. The Company is also in discussions with its banks in Azerbaijan to put in place a stand-by credit facility of up to $20 million. The purpose of the stand-by credit facility is to provide additional financial flexibility and ensure the continuation of the Group's operations during this time of global economic uncertainty.


    Production guidance for the full year ending 31 December 2020

    Due to production continuing in Azerbaijan, the Company currently maintains its production guidance for the year ending 31 December 2020 of between 75,000 to 80,000 gold equivalent ounces.


    Annual results for 2019 and Annual General Meeting

    The Company is well advanced in preparing its audited results for the year ended 31 December 2019. It is currently planning to announce these in mid-May 2020, as in previous years, and post an annual report to shareholders around the end of May. The Company has scheduled an Annual General Meeting at 10:30am on Tuesday, 23 June 2020 at the Washington Hotel in Central London. The Company is actively monitoring developments regarding the holding of annual general meetings and looking at alternative arrangements should it be impossible to convene the meeting.


    Summary

    In common with many businesses around the world, the Coronavirus has affected the Company's operations. However, Anglo Asian is proactively taking all possible measures to safeguard its business and employees. The Company will update its shareholders on its operations along with its first quarter 2020 production in mid-April. However, the situation in Azerbaijan and the rest of the world is evolving quickly and should any developments further significantly affect its operations before mid-April, they will be separately reported.
     
  19. Groucho

    Groucho Member

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    15 April 2020

    Anglo Asian Mining plc

    Q1 2020 Production and Operations review


    Production of 18,609 gold equivalent ounces calculated using budget metal prices - in line with guidance

    Increase in Net Cash to $26 million despite disruption to shipping of gold doré

    Operations at Gedabek continue and Baku office remains open


    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, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ("Gedabek") in western Azerbaijan for the three months to 31 March 2020 ("Q1 2020").


    Note that all references to "$" are to United States dollars.


    Overview

    · 18,609 gold equivalent ounces ("GEOs") produced calculated using budgeted metal prices - in line with guidance as announced on 11 March 2020

    · Reportable production at actual metal prices of 18,216 GEOs (Q1 2019: 20,287 GEOs) - price of gold continues to increase relative to copper

    · Current FY 2020 production guidance of 75,000 GEOs to 80,000 GEOs and revenue guidance of over $100 million at current metal prices remains unchanged

    · Gold production of 15,874 ounces (Q1 2019: 17,245 ounces)

    · Copper production increased to 559 tonnes (Q1 2019: 513 tonnes)

    · Gold doré production in March shipped to refiner in April due to COVID-19 delay - despite this delay, cash generation in Q1 2020 of $4.8 million

    · Company achieved debt free milestone - cash of $26.0 million at 31 March 2020

    · Operations at Gedabek continue and the Baku office remains open


    Anglo Asian CEO Reza Vaziri commented, "I am very pleased to report the first quarter 2020 production in line with the Company's guidance despite the COVID-19 emergency. The protection of our staff remains paramount and all possible measures are being implemented at Gedabek to safeguard their health. We did not ship our March gold doré production until April but the Company still generated significant cash in the quarter due to the increasing gold price and is now debt free.


    "These are unprecedented times which are placing exceptional demands upon the Company and its staff. Whilst the future evolution of the COVID-19 health emergency is currently unknown, your Company is well placed to weather the challenges and benefit from the increasing gold price."


    Production overview

    · 10 per cent. year-on-year decrease in reportable GEO production to 18,219 GEOs (Q1 2019: 20,287 ounces)

    · Eight per cent. year-on-year decrease for Q1 2020 in gold production to 15,874 ounces (Q1 2019: 17,245 ounces):

    o 15,041 ounces contained within gold doré

    o Eight ounces from SART processing

    o 825 ounces from flotation

    · Copper production for Q1 2020 increased by nine per cent. to 559 tonnes (Q1 2019: 513 tonnes):

    o 114 tonnes from SART processing

    o 445 tonnes from flotation processing

    · Silver production for Q1 2020 totalled 34,645 ounces (Q1 2019: 51,295 ounces):

    o 3,852 ounces contained within gold doré

    o 12,898 ounces from SART processing

    o 17,895 ounces from flotation


    Sales overview

    · Q1 2020 gold bullion sales of 11,236 ounces at an average of $1,577 per ounce (Q1 2019: 13,191 ounces at an average of $1,306 per ounce)

    · Q1 2020 copper concentrate shipments to the customer totalled 2,018 dry metric tonnes ("dmt") with a sales value of $2.9 million (excluding Government of Azerbaijan production share) (Q1 2019: 279 dmt with a sales value of $0.7 million)


    Company financials

    · Cash of $26.0 million at 31 March 2020 with no bank debt (Cash of $22.9 million and bank debt of $1.7 million at 31 December 2019 giving net cash of $21.2 million)

    · Gold doré production from 5 to 31 March 2020 was shipped to the refiner in April due to the delay caused by COVID-19. An estimated 90 per cent. of the Company's share of the contained gold bullion was sold on 6 April 2020 for $5.9 million


    Operations review


    The Company mined the following ore in the three months ended 31 March 2020:
    96AB3295-1D63-44E7-9209-31D903D8554B.jpeg


    Anglo Asian stacked 132,731 tonnes of dry crushed ore on to heap leach pads with an average gold content of 0.84 grammes per tonne of gold during Q1 2020 (Q4 2019: 98,280 tonnes with an average gold content of 0.86 grammes per tonne of gold). The Company also heap leached uncrushed Run of Mine ("ROM") ore. During Q1 2020, Anglo Asian stacked 258,121 tonnes of ROM ore on to heap leach pads with an average gold content of 0.49 grammes per tonne of gold (Q4 2019: 288,583 tonnes with an average gold content of 0.49 grammes per tonne of gold).


    The Company processed 163,379 dry tonnes of ore with an average gold content of 2.53 grammes per tonne of gold through the agitation leaching plant in Q1 2020 (Q4 2019: 181,710 dry tonnes with an average gold content of 2.44 grammes per tonne of gold). 126,354 dry tonnes of ore containing an average copper content of 0.49 per cent. were processed by the flotation plant (Q4 2019: 125,205 dry tonnes of ore containing an average copper content of 0.63 per cent.).


    The Company produced gold doré containing 15,041 ounces of gold and 3,852 ounces of silver at Gedabek (Q4 2019: 15,912 ounces of gold and 3,880 ounces of silver) in the quarter. During Q1 2020, the agitation leaching plant produced 11,862 and 3,030 ounces of gold and silver, respectively, and the heap leach operations produced 3,179 and 822 ounces of gold and silver, respectively.


    SART processing produced 221 dmt of copper concentrate containing 114 tonnes of copper, eight ounces of gold and 12,898 ounces of silver in Q1 2020 (Q4 2019: 165 dmt of copper concentrate containing 113 tonnes of copper, 16 ounces of gold and 11,159 ounces of silver).


    In Q1 2020, flotation processing produced 2,773 dmt of copper concentrate containing 445 tonnes of copper, 825 ounces of gold and 17,895 ounces of silver (Q4 2019, 3,354 dmt of copper concentrate containing 616 tonnes of copper, 1,979 ounces of gold and 26,647 ounces of silver).


    The Company sold 2,018 dmt of copper concentrate in Q1 2020 for $2.9 million compared to 3,723 dmt for $7.5 million in Q4 2019 (excluding Government of Azerbaijan production share).


    Company financial review


    Cash

    The Company had cash at 31 March 2020 of $26.0 million and no bank debt, an increase in net cash of $4.8 million since 31 December 2019 when net cash was $21.2 million.

    As estimated 90 per cent. of the Company's share of the contained gold bullion was sold on 6 April 2020 for $5.9 million from the gold doré production from 5 to 31 March 2020.

    Anglo Asian Mining - Q1 2020 Production and Operations review #AAZ @AAZMining https://www.voxmarkets.co.uk/rns/announcement/2e852aeb-56e4-4019-a72d-feac8c4571d4 #voxmarkets undefined

    Refer to RNS for detailed production figures for each location.
     
    Last edited: Apr 15, 2020
  20. Groucho

    Groucho Member

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    13 May 2020

    Anglo Asian Mining PLC

    2019 Full year results


    Increase in profit before tax to $30.1 million


    Final dividend increases to $0.045 per ordinary share giving a total 2019 dividend of $0.08 per ordinary share (2018: $0.07 per share)


    Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce its final results for the year ended 31 December 2019 ("FY 2019"). Note that all references to "$" are to United States Dollars.


    Financial Highlights

    Record total revenues


    · Final dividend declared of $0.045 per ordinary share payable on 30 July 2020 subject to approval at the Annual General Meeting giving a FY 2019 total dividend of $0.08 per ordinary share (FY 2018: $0.07 per ordinary share)

    · Record total revenues in 2019 of $92.1 million representing a two per cent. year-on-year ("y-o-y") increase (2018: $90.4 million)

    · Profit before taxation for 2019 of $30.1 million (2018: $25.2 million) - a y-o-y increase of 19 per cent.

    · Strong operating cash flow before movements in working capital of $50.5 million(2018: $50.1 million) driven by strong sales and continued operational efficiencies as one of the lowest cash cost gold producers

    · Net cash of $21.2 million at 31 December 2019 (31 December 2018: $6.1 million) calculated as cash and cash in transit less aggregate of loans and borrowings with Company becoming debt free in February 2020


    Operational Highlights

    FY 2019 production in line with expectations


    · 82,795 gold equivalent ounces ("GEOs") produced, calculated using budgeted metal prices, compared to forecast of 82,000 to 84,000 GEOs:

    o Gold production for FY 2019 decreased by four per cent. y-o-y to 70,098 ounces (FY 2018: 72,798 ounces)

    o Copper production for FY 2019 increased by 34 per cent. y-o-y to 2,210 tonnes (FY 2018: 1,645 tonnes)

    o Silver production for FY 2019 of 159,356 ounces (FY 2018: 210,184 ounces)

    · FY 2019 gold bullion sales of 53,992 ounces (FY 2018: 59,481 ounces) completed at an average of $1,410 per ounce (FY 2018: $1,265 per ounce)

    · FY 2019 copper concentrate shipments to the customer totalled 10,281 dry metric tonnes ("dmt") with a sales value of $16.7 million (excluding Government of Azerbaijan production share) (FY 2018: 7,675 dmt with a sales value of $15.4 million)

    · All in sustaining cost ("AISC") of gold production increased to $591 per ounce (2018: $541 per ounce) - AISC remains in the lowest quartile

    · Total production target for FY 2020 between 75,000 and 80,000 GEOs


    Chairman's statement


    I am very pleased to report on another year of excellent performance for Anglo Asian. We continue to enjoy higher precious metal prices and the Company increased both its turnover and profits in 2019 with production broadly similar to 2018. The Company is now debt free having repaid the last instalment of its bank debt in February 2020 and has a robust balance sheet. We continue to reward shareholders from our reliable cash flow and I am delighted to declare a final dividend for the year ended 31 December 2019 of US 4.5 cents per share, payable on 30 July 2020, giving a total dividend of US 8.0 cents for 2019.


    Our geological exploration programme made very good progress in the year. We announced two new significant copper and gold discoveries at Avshancli and Gilar. The mineral reserves and life of our existing mines are being extended and several promising new mineral occurrences are under investigation. We are proceeding at pace to classify our exploration targets and new discoveries as mineral resources and reserves with the aim of starting their commercial exploitation as soon as possible.


    The COVID-19 health emergency has necessarily raised concerns about our current trading. The Government of Azerbaijan acted swiftly and imposed many restrictions to prevent the spread of the coronavirus. However, whilst the safety of our employees is paramount, we have been able to maintain production and continue to sell our gold doré and copper concentrate. Our production forecast for 2020 is currently unchanged. Although the future evolution of the COVID-19 health emergency and its final effects are unknown at this time, the Company is well placed to weather the situation and continue to provide returns to its shareholders.


    Operational review

    A total of 81,399 gold equivalent ounces was produced in 2019, a three per cent. decrease compared to 2018. Copper production increased to 2,210 tonnes compared to 1,645 tonnes in 2018. Gold production was 70,098 ounces compared to 72,798 ounces in 2018 which was a four per cent. decrease. Silver production in 2019 was 159,356 ounces, a decrease of 24 per cent. compared to 2018.


    Gold production was lower by 2,700 ounces due to lower production of gold within gold doréof 1,465 ounces and lower gold within copper concentrate of 1,235 ounces. The lower gold production was due to the lower gold grade of ore processed by both the agitation leaching and flotation plants. Copper production increased due to a full year of independent operation of the flotation plant.


    The Company has done much to improve the efficiency and safety of the Gedabek site during the previous few years. This has included major enhancements such as the construction of an electrical sub-station and connection of the site to the national power grid and the construction of a water treatment plant. The site is now well developed but the Company continues to make improvements wherever possible. New equipment including a reverse circulation drill rig and four excavators were deployed during 2019 and an on-site vehicle repair facility constructed. The gold room was also refurbished and new equipment installed.


    Our tailings dam was inspected in June 2019 by Knight Piésold, a leading environmental engineering company. Knight Piésold reported that the dam had been properly constructed and showed no signs of instability or seepage. Various recommendations were made by Knight Piésold, which have now been implemented. The dam wall is being raised this year by six metres to increase the capacity of the dam by 1.4 million cubic metres. This will provide enough storage capacity for the next two years and will be the final raise of the wall. The Company is looking at alternative sites to build another dam and alternative treatment options for its tailings.


    Financial results and dividend

    Our financial performance in 2019 was again exceptional with revenues increasing by $1.7 million to $92.1 million and profit after tax by $3.0 million to $19.3 million. Increased gold prices more than offset the marginally lower production. Gold bullion was sold at an average price of $1,410 per ounce in 2019 compared to $1,265 in 2018. Revenues continued to be subject to an effective royalty of 12.75 per cent. in 2019. We anticipate this effective royalty rate will continue until at least 2023 and further details are in the financial review below. The all-in sustaining cost ("AISC") per ounce of gold produced increased in the year to $591 from $541 in 2018. This was due to a full year's operation of the flotation plant and increased mining from the Gedabek open pit. The Company's AISC remains amongst the lowest quartile in the industry.


    The Group's financial position continued to strengthen in 2019. Cash from operations including cash in transit was $42.9 million and free cash flow was $25.5 million. The final instalment of its bank debt was repaid in February 2020. The Company had over $50 millionof bank debt in 2015 and it was therefore a significant milestone to become debt free in early 2020. The Company has agreed terms for a $15 million standby credit facility as a precautionary measure in light of the uncertainty caused by the COVID-19 health emergency.


    The Company is committed to delivering returns to shareholders by dividends and has a target of distributing approximately 25 per cent. of free cash flow to its shareholders. I am therefore delighted to announce a final dividend for the year ended 31 December 2019 of US 4.5 centsper share giving a total dividend for 2019 of US 8.0 cents per share.


    Mineral resources and geological exploration

    Current mineral resource and ore reserves for the Company's three mines at Gedabek, together with recent near-mine exploration work, provide confidence of a combined mine life of Anglo Asian's existing mines to at least 2024. It is the Company's intention to produce new JORC resource and reserves statements for its existing mines during the course of 2020, which is likely to further extend the mine life. This work is ongoing with completion expected during quarter three 2020.


    The Company's geological exploration programme continued throughout 2019 with considerable success. Work on investigating the targets identified in 2018 by the aerial ZTEM survey continued during the year. We were delighted to announce the discovery of two new mineral occurrences "Avshancli" and "Gilar" and positive exploration results were obtained in the vicinity of our existing mines. Mineralisation remains open both down dip and to the east of the Gedabek open pit and copper mineralisation was discovered in the vicinity of the Ugur open pit. We also had success at the Gosha contract area which has historically been under explored. Mineralisation at depth was discovered beneath an existing adit of the existing Gosha mine and several new polymetallic targets were identified. WorldView-3 satellite remote sensing image collection took place over Ordubad and the area was visited by geologists from the Natural History Museum of London. Their work suggests that the geology at Ordubad is favourable for porphyry formation. A revised geological map of the contract area is under preparation using all available geological data. A targeted drill programme will then be planned to produce data for resource estimation.


    COVID-19 health emergency

    The Government of Azerbaijan (the "Government") implemented various strict restrictions starting from early March 2020 to contain the spread of the coronavirus. All international land borders were closed to passengers (but not to freight) and all scheduled air flights in and out of the country together with domestic flights were suspended. Domestic travel around the country and the movement of people were also severely curtailed.


    The Government suspended the operation of many of Azerbaijan's industries but metallurgical companies were not required to close. Gedabek continues to operate and our office in Bakuremains open. Gedabek is fortuitously in a fairly isolated location and most of its operations do not require the close gathering of many people. No cases of COVID-19 have so far occurred in Gedebek. The health of our staff is paramount and many measures have been taken to ensure their safety including carrying out an extensive education programme and implementing many hygiene measures. Operating during the COVID-19 health emergency has not added significantly to our costs.


    Gold doré is usually shipped to Switzerland by scheduled air flights which have been temporarily suspended. However, the Company continues to ship gold doré by chartered aircraft. The refineries in Switzerland were temporarily closed in March and early April but have since reopened with initially limited operations.


    Annual General Meeting for 2020

    Due to the UK Government's COVID-19 "Stay Alert" measures which prohibits amongst other things, public gatherings of more than two people, the annual general meeting for 2020 is being convened as a "closed meeting" with only the necessary quorum of two members. Other shareholders will not be allowed to attend the meeting on the grounds of safety.


    The directors have very reluctantly taken this measure as previous annual general meetings have been a valuable forum for directors to meet with shareholders. To ensure shareholders can still ask directors questions about the Company, shareholders will be able to submit questions to the board prior to the annual general meeting via the Company's web site. The Company will publish all relevant questions together with the Company's response as soon as practical following the annual general meeting.

    Shareholders are strongly encouraged to still vote by proxy. However, shareholders should ensure they appoint the Chairman of the meeting as their proxy as other individuals will not be allowed to attend the meeting.


    Outlook

    The Company achieved considerable success in 2019 but the COVID-19 health emergency has made the short-term outlook uncertain. However, Anglo Asian is now financially robust and well placed to weather the challenges of COVID-19. The Company's main priority during this period is to protect the health and safety of its staff whilst maintaining normal operations wherever possible.


    The Company has over 1,000 square kilometers of land within its contract areas. As set out above and elsewhere in this results announcement, the Company has a comprehensive exploration programme underway to extensively explore this land for new deposits. This programme is yielding results with the identification of several major targets at Gedabek and Gosha and the new mineral occurrences at Avshancli and Gilar. We are also extending the mineral reserves at our existing mines. We still regard Ordubad as an untapped value opportunity and work there has been promising. The Company will also consider any suitable opportunities outside Azerbaijan which it believes can be made commercially successful.


    We have set a production target of 75,000 to 80,000 gold equivalent ounces for 2020, which is a small decrease from 2019. This includes up to 67,000 ounces of gold and between 2,200 and 2,400 tonnes of copper. We are currently still on track to achieve this production target and I look forward to updating shareholders with our progress in the coming months. At current metal prices achieving our production guidance is expected to result in a turnover in excess of $100 million.


    I would like to conclude by saying that Anglo Asian accomplished much in 2019. We continue to look to the future, beyond the abatement of the COVID-19 health emergency, to build on our very solid foundations to develop your Company into a mid-tier gold, copper and silver producer. Despite the current unprecedented times, I continue to look forward to 2020 and beyond with optimism.


    Appreciation

    I would like to take this opportunity to thank the employees of Anglo Asian, our partners, the Government of Azerbaijan and our advisors for their continued support in these extraordinary times. I also wish to sincerely thank the shareholders for their continued investment and support in Anglo Asian.


    I look forward to sharing the successes of 2020 with you.


    Khosrow Zamani

    Non-executive chairman

    12 May 2020


    Dividend


    A final dividend of US$0.045 per share will be paid gross in respect of the year ended 31 December 2019 to shareholders on 30 July 2020 that are on the shareholders record at the record date of 3 July 2020 subject to approval of the shareholders at the Company's Annual General Meeting on 23 June 2020. The shares will go ex-dividend on 2 July 2020. All dividends will be paid gross and in cash. A scrip dividend or any other dividend reinvestment plan will not be offered by the Company.


    The dividend will be payable in pounds sterling. The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank of England at 4pm each day from the 6 to 10 July 2020.
     

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