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AAZ Anglo Asian Mining share chat

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

  1. Groucho

    Groucho Member

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  2. Groucho

    Groucho Member

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    Conroy Gold & Natural Resources Plc - Update on Proposals for Joint Venture Partnership #CGNR @ConroyGoldplc https://www.voxmarkets.co.uk/rns/announcement/3d377eb2-1114-4bb5-a12e-10a4d3761ae2 #voxmarkets

    Professor Richard Conroy, Chairman, commented:

    "My colleagues and I look forward very much to working with the Demir Export team on the joint venture partnership-Project Inis, and building the
    foundations for a long term, successful relationship. The comprehensive nature of this Letter of Intent should facilitate us progressing through the next stage of the transaction.

    Demir Export has the mining expertise and the financial resources not only to bring the Clontibret gold deposit to construction ready status and into
    operation as a mine, but also to advance the significant gold potential of the other licences along the gold trend to the same status."
     
  3. Groucho

    Groucho Member

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    01 March 2021

    Anglo Asian Mining plc

    H2 2020 Geological Exploration Activities

    Gedabek, Gosha and Ordubad Contract Areas


    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 summary of its extensive and productive geological exploration activities from 1 July to 31 December 2020 ("H2 2020") at its Gedabek, Gosha and Ordubad Contract Areas.

    The exploration programme resulted in a new discovery "Zafer" during H2 2020, which was announced in January 2021. Zafer is a copper-gold mineral occurrence approximately 1.5 kilometres ("km") from the Company's processing facilities at Gedabek.

    The comprehensive exploration programme already underway at Gedabek continued in H2 2020 and substantial drilling was carried out at several priority mineral deposit targets. A considerable amount of exploration was also carried out at its Gosha contract area. However, COVID-19 travel restrictions continue to impede the geological work that could be undertaken at Ordubad. 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

    · New mineral discovery Zafer announced on 19 January 2021

    o Copper-gold mineral occurrence discovered approximately 1.5 km north-west of the Company's Gedabek processing plant

    o Significant drill hole intersection of copper-gold mineralisation - 113 metres at 0.5 per cent. copper and 0.7 grammes per tonne ("g/t") of gold

    o Maximum grades within all drill holes completed to 31 December 2020 of up to 6.0 per cent. copper, 14.6 per cent. zinc and 12.4 g/t of gold

    · Initial models of gold and copper mineralisation completed and drilling activity continued in the Avshancli mineral district

    o Initial models of gold and copper mineralisation completed for Avshancli 1 which exhibit a central zone of about 200 by 300 metres surrounded by satellite zones

    o The central zone is free digging with the possibility of mining the area in the near future by open pit

    o Significant drill hole intercepts of up to 16.7 g/t of gold were reported

    o Outcrop and trench sampling reported notable grades of up to 19.9 g/t of gold

    · Initial drill programme commenced and surface Induction Polarisation ("IP") survey conducted at Gilar

    o Preliminary interpretation of IP survey shows main anomalies are located in the south-east and north-east part of the mineralised area

    o Significant drill hole intercepts were reported of up to 13.3 g/t of gold

    · Substantial drilling completed at the Gadir and Gedabek underground mines

    o Gold grades of up to 6.2 g/t of gold were reported in the underground Gedabek mine

    o Gold grades of up to 4.5 g/t of gold were reported in the underground Gadir mine

    · Core drilling continued at Ugur Deeps, targeting the high-grade copper and silver mineralisation

    o Seven drill holes were completed with intersections of more than one per cent. copper encountered at depths of around 300 metres

    Gosha

    · Infrastructure to support sustained geological exploration now completed including a geological camp

    · Drilling continued close to the Gosha underground mine targeting areas of extension to "Zone 5" and in the "New Zone" (the area between "Zone 5" and "Zone 13")

    o Significant gold grades of up to 15 g/t of gold were encountered

    o Assay results confirm that gold mineralisation exists at depth below "Zone 5" and "New Zone"
    Ordubad

    · Due to a continuation of the access restrictions as a result of COVID-19, no drilling was carried out in H2 2020

    · A limited trenching programme continued at the Uchurdag and Unus targets:

    o 149 trenches totalling 561 linear metres were completed

    o 560 trench samples collected from the Uchurdag and Unus targets and results will be reported in H1 2021


    Stephen Westhead, Director of Geology & Mining, commented, "Our comprehensive geological programme continues to yield excellent results. We were very pleased to report in January the discovery of Zafer in the second half of last year. Zafer is considered a very significant discovery and a preliminary estimate of the deposit size is about six million tonnes of mineralised rock. It is also very close to our processing facilities and very little additional infrastructure will be required to bring it into production. We envisage production will be by underground mining.

    "Substantial further exploration work was also carried at Gedabek, in particular at Avshancli and Gilar. An initial model of Avshancli shows gold and copper mineralisation in a 200 to 300 metre central zone surrounded by satellite zones. The central zone is free digging, and we are considering the possibility of mining this area in the near future by open pit. A core drilling programme commenced at Gilar and a surface Induction Polarisation survey was also carried out.

    "Work continued at Gosha and good drill results were obtained from holes around the existing narrow vein mine. Gosha is very under-explored and we continued with both outcrop sampling and trench sampling throughout the contract area. Unfortunately, drill access was still not possible to Ordubad due to the COVID-19 pandemic. However, some limited trench sampling was carried out at the Uchurdag and Unus targets"


    Gedabek Contract Area ("Gedabek CA")


    Gedabek open pit and Duzyurd

    There was no exploration in and around the operating Gedabek open pit and Duzyurd in H2 2020 due to production priorities. However, some reverse circulation drilling was carried out for grade control and mine planning purposes.


    Gadir and Gedabek underground mines

    A considerable amount of exploration activity was completed at Gedabek underground during H2 2020. Various platforms were utilised to complete 23 core drill holes (16 in BQ diameter and 7 HQ/NQ diameter) for a total of 1,371 metres. Gold grades of up to 6.2 g/t of gold were reported.

    Significant drilling was carried out in the Gadir underground in H2 2020. 14 core drill holes (14 in BQ diameter) were completed for a total of 533 metres. Gold grades of up to 4.5 g/t of gold were reported.


    Ugur Deeps

    Exploration in H2 2020 was focused on and around the Ugur open pit to assess the potential extensions to the Ugur deposit. Seven core drill holes were completed to the south-east of, and around, the Ugur open pit. These holes targeted deeper extents of high-grade copper-silver mineralisation. Intersections assaying more than one percent copper were encountered at depths of around 300 metres. Drilling is continuing in H1 2021.


    Zafer

    Zafer is a new discovery which was announced 19 January 2021. Zafer was defined by Anglo Asian's in-house exploration group and is a new mineral occurrence approximately 1.5 km north-west of the Company's Gedabek processing facilities. The mineralisation was identified by geological exploration follow-up of field mapping between ZTEM targets. Geological, structural and alteration mapping was used to target the initial drilling, which commenced in August 2020. A series of drill holes demonstrated that the geology progressively moved from altered rock into weakly mineralised rocks and finally into the zone of significant mineralisation.

    Once the scale of the mineralisation was understood, ground-based IP and resistivity electrical geophysics was employed to define the potential extent of the mineralisation. In total, 10 profile lines covering an overall length of nearly 25 km were completed. The 2-D and 3-D interpretations resulted in the identification of a number of "hot spot" anomalies that are being followed up with further drilling.

    The geology of the area is structurally complex, comprising mainly of Upper Bajocian-aged volcanics. The mineralisation seems to be associated with a main northwest-southeast trending structure, which is interpreted as post-dating smaller northeast-southwest structures. In the southwest area, outcrops with tourmaline have been mapped, which can be indicative of the potential for porphyry-style mineral formation. The exploration area is located along the regional Gedabek-Shekarbek fault system, with Shekarbek being another target area known to host copper mineralisation, situated in the northwest of the zone.

    In 2020, 12 drill holes were completed totalling 7,675 metres. The drill results are summarised in the linked report. The deposit is currently being drilled with three core drill machines and further geophysical work will be carried out if required. Sampling for a mineralogical study is also underway to assess the textural relations between the metallic minerals and gangue mineralogy. This will be used to assess the associations between the copper and gold mineralisation (grain size and liberation characteristics), which will be used to determine the grind sizes and processing options.

    Based on the work in 2020, a preliminary estimate of the deposit size is about six million tonnes of mineralised rock.


    Avshancli district

    Avshancli is a significant mineral district which is 10.5 km north-east of the Gedabek open pit. Avshancli is a gold-copper occurrence comprising three defined areas, Avshancli 1, 2 and 3. In H2 2020, detailed mapping continued over the region. Both core and reverse circulation drilling, as well as outcrop and trench sampling, were carried out. These programmes all remain ongoing. Fourteen core drill holes totalling 2,978 metres and 54 reverse circulation drill holes totalling 3,676 metres were completed. Significant intercepts of up to 16.7 g/t of gold were reported. Outcrop and trench sampling reported notable grades of up to 19.9 g/t of gold.

    Initial models of gold (at > 0.3 g/t gold) and copper (at > 0.2 per cent.) mineralisation have been prepared for Avshancli 1. The mineral concentrations exhibit a central zone about 200 by 300 metres surrounded by satellite concentrations that are currently disconnected from the main central zone. The central area contains gold mineralisation near surface in a substrate that is free digging. The thickness of the zone seems restricted and work is continuing to assess geological controls on the continuity both laterally and at depth. Exploration is on-going with further work planned to test the continuity from the central area to the satellite zones.


    Gilar

    Gilar is a new mineral occurrence located approximately two km south of Avshancli 1. A considerable amount of exploration was completed during H2 2020 comprising core drilling and outcrop mapping. A ground-based Induction IP survey was also carried out.

    To commence the initial drill programme, 19 core drill holes were completed at Gilar during H2 2020 totalling 5,832 metres. Significant intercepts were reported of up to 13.3 g/t of gold. An additional three core drill holes were drilled in the flank of the Gilar for the evaluation of ZTEM shallow targets ZS14 and ZS15. Interpretation of the ZTEM drill holes will be reported in 2021.

    BLASTO LLC were contracted to conduct an IP survey over the Gilar mineralisation area, which was carried out between 19 August to 1 September 2020. The target depth of exploration was 400 metres. Six profile lines (including one test profile) were run. Interpretation of the IP data is currently being undertaken by both an external consultant and the Company. The preliminary interpretation shows the main anomalies are located in the south-east and north-east part of the mineralisation area.

    A detailed report on the H2 2020 exploration activities at the Gedabek CA can be found at https://www.angloasianmining.com/operations/exploration-and-development/.


    Gosha Contract Area ("Gosha CA")

    Preliminary infrastructure has now been constructed at Gosha to support exploration efforts. In H2 2020, seven core drill holes were completed for a total of 1,636 metres. These were drilled around "Zone 5" and the now named "New Zone" between "Zone 5" and "Zone 13", which is approximately 500 metres from "Zone 5". The aim of this drill programme continues to be to test the Gosha vein system at depth, below the current "Zone 5" and to further assess the "New Zone". Significant gold grades of up to 15 g/t of gold were encountered. These assay results confirm that gold mineralisation exists at depth below "Zone 5" and "New Zone".

    Surface exploration was also carried out at the Gocdere and Khatinca regions of the Gosha CA. 145 outcrop samples were collected and 14 trenched totalling 301 metres were completed from which 190 samples were taken.

    A detailed report on the H2 2020 exploration activities at the Gedabek CA can be found at https://www.angloasianmining.com/operations/exploration-and-development/.


    Ordubad Contract Area ("Ordubad CA")

    Due to COVID-19 restrictions, drill access continued to be restricted and therefore no drilling was able to be undertaken in H2 2020. Trench work was carried out during H2 2020 on the Unus and Uchurdag gold vein systems. A total of 149 trenches were dug amounting to 561 linear metres. 560 samples were obtained at one metre intervals unless geological constraints warranted adjustment in sample length. Assay results for these samples have not yet been received and will be reported in H1 2021.

    The Company is still awaiting results from the samples collected by the geological team from the Natural History Museum London as part of their ongoing From Arc Magmas to Ores ("FAMOS") international research project. This study is being carried out to determine whether there are any indications of a porphyry system within the Ordubad CA. The results of this investigation should have been available by now, but unfortunately they have been delayed by the COVID-19 pandemic.

    A detailed report on the H2 2020 exploration activities at the Gedabek CA can be found at https://www.angloasianmining.com/operations/exploration-and-development/.
     
  4. Groucho

    Groucho Member

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    15 April 2021

    Anglo Asian Mining plc

    Q1 2021 Production and Operations Review

    Production of 15,810 gold equivalent ounces calculated using budget metal prices

    Full year production guidance for 2021 of 64,000 to 72,000 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 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 2021 ("Q1 2021") together with its production guidance for the full year to 31 December 2021 ("FY 2021").


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


    Q1 2021 Production Update


    · Gold production for Q1 2021 of 11,907 ounces (Q1 2020: 15,867 ounces)

    · Copper production for Q1 2021 increased by 14 per cent. to 638 tonnes (Q1 2020: 559 tonnes)

    · Silver production for Q1 2021 totalled 35,365 ounces (Q1 2020: 34,642 ounces)

    · 15,810 gold equivalent ounces ("GEOs") produced calculated using budgeted metal prices


    Q1 2021 Sales and Cash Update


    · Cash of $22.9 million at 31 March 2021 (31 December 2020: $38.8 million)

    o Dividend of $1.7 million paid in Q1 2021

    o Balance of corporation tax for FY 2020 of $6.3 million paid in Q1 2021

    o Post Q1 2021 sales of inventory

    · Unsold Company inventory at 31 March 2021 valued at $15.2 million (5,592 ounces of gold valued at $9.7 million and $5.5 million worth of copper concentrate)


    FY 2021 Production Guidance

    · Forecast gold production for FY 2021 of 48,000 to 54,000 ounces (FY 2020 actual production: 56,864 ounces of gold)

    o Lower gold production forecast due to mining only from the Company's existing Gedabek and Gadir mines in 2021 with no contribution from Ugur which has now been depleted

    · Forecast copper production for FY 2021 of 2,500 to 2,800 tonnes of copper (FY 2020 actual production: 2,591 tonnes of copper)

    · Forecast production assumes no production from the newly restored contract areas during 2021

    · Forecast total metal production for FY 2021 of 64,000 to 72,000 GEOs (FY 2020 actual production: 67,249 GEOs)


    Anglo Asian CEO Reza Vaziri commented: "This year we will only be mining from our existing Gedabek open pit and Gedabek and Gadir underground mines. Gold production is therefore expected to be lower as there will be no contribution from Ugur, which was depleted in 2020. However, we are expecting an increase in copper production as we take more ore from the Gedabek open pit. The first quarter's production and the full year production guidance reflect this fact.


    "Our successful exploration programme, which has progressed significantly during 2020, is continuing. We are looking forward to starting to reap the benefits of this exploration with production next year from Avshancli. The drilling results from Zafer continue to be encouraging and we have now engaged third party consultants to provide indicative estimates of resources. We are also just starting to understand the potential of the newly-restored contract areas. A recent visit to the Vejnaly contract area in Zangilan has identified some high grade ore stockpiles and the feasibility of transporting this ore to Gedabek for processing is being evaluated. I look forward to updating shareholders further throughout the year."


    Production Overview for Q1 2021

    · Q1 2021 gold production of 11,907 ounces (Q1 2020: 15,867 ounces):

    o 11,541 ounces contained within gold doré

    o 13 ounces from sulphidisation, acidification, recycling and thickening ("SART") processing

    o 353 ounces from flotation

    · Copper production for Q1 2021 increased by 14 per cent. to 638 tonnes (Q1 2020: 559 tonnes):

    o 276 tonnes from SART processing

    o 362 tonnes from flotation processing

    · Silver production for Q1 2021 totalled 35,365 ounces (Q1 2020: 34,642 ounces):

    o 4,916 ounces contained within gold doré

    o 19,850 ounces from SART processing

    o 10,599 ounces from flotation

    · Reportable total metal production of 15,431 GEOs (Q1 2020: 18,219 ounces)

    o The actual price of gold was higher than the budgeted price which decreased the gold equivalent value of the copper


    Sales overview


    · Q1 2021 gold bullion sales of 5,635 ounces at an average of $1,697 per ounce (Q1 2020: 11,236 ounces at an average of $1,577 per ounce)

    · No copper concentrate shipments were made in Q1 2021 as the renegotiated contracts with off-takers were waiting the approval of the Government of Azerbaijan (Q1 2020: sales of 2,018 dry metric tonnes ("dmt") with a value of $2.9 million)

    o Government approval for the new contracts has now been obtained


    Company financials

    · Cash of $22.9 million at 31 March 2021 (Cash of $38.8 million at 31 December 2020)

    · Unsold gold doré and copper concentrate inventory of $15.2 million at 31 March 2021

    · Gold doré production from 11 February to 31 March 2021 was not shipped to the refiner until April to minimise shipping costs. 2,000 ounces of the contained gold bullion was sold on 6 April 2021 for $3.5 million

    Anglo Asian Mining - Q1 2021 Production and Operations Review #AAZ @AAZMining https://www.voxmarkets.co.uk/rns/announcement/41cdbed2-3cde-4639-a52a-1e130ed4f6ab #voxmarkets


    FY 2021 production guidance

    The production guidance has been calculated using the following metal prices used for the 2021 budget:

    - Gold: $1,650 per ounce
    - Silver: $25 per ounce
    - Copper: $8,700 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 2021 with the Government of Azerbaijan under the Company's existing production sharing agreement.

    The production guidance contains no production from the three new restored territories. The Company is evaluating whether ore stockpiled at the Vejnaly contract area can be transported to Gedabek for processing.
     
  5. Groucho

    Groucho Member

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    21 April 2021

    Anglo Asian Mining plc

    Five-year Extension to Gedabek Contract Area Approved

    Negotiations Continue for Additional Territory


    Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce that it has obtained ratification for the first of the two permitted five-year extensions of the Production Sharing Agreement for its Gedabek Contract Area. The Company is also currently in negotiations with the Government of Azerbaijan to obtain an extension of the territory of its existing contract areas and for new contract areas in Azerbaijan.


    Anglo Asian CEO, Reza Vaziri, commented: "I am very pleased to announce that the Company has obtained the first of the five-year extensions of the Production Sharing Agreement for the Gedabek Contract Area, especially as we continue with our exploration programme which has already identified a number of new mineral occurrences including Zafer and Avshancli.

    "This extension has been ratified by the Government of Azerbaijan during on-going negotiations for the Company to increase its land under concession in Azerbaijan both through enlargement of its existing contract areas and the licencing of new areas. This will enable the Company to expand its operations in the country. It is expected these negotiations will be concluded shortly and I look forward to updating shareholders."
     
  6. Groucho

    Groucho Member

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    20 May 2021

    Anglo Asian Mining PLC

    2020 Full year results


    Record turnover of $102.1 million and an increase in profit before tax to $35.7 million

    Cash of $38.8 million and no bank debt at 31 December 2020


    Final dividend of $0.035 per ordinary share giving a total dividend of $0.095 per ordinary share for 2020 (2019: $0.08 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 audited results for the year ended 31 December 2020 ("FY 2020"). Note that all references to "$" are to United States dollars and "£" to United Kingdom pounds sterling.


    Financial Highlights

    Record total revenues

    · Record total revenues in 2020 of $102.1 million representing an 11 per cent. year-on-year ("y-o-y") increase (2019: $92.1 million)

    · Profit before taxation for 2020 of $35.7 million (2019: $30.1 million) representing a y-o-y increase of 19 per cent.

    · Strong operating cash flow before movements in working capital of $52.8 million (2019: $50.5 million) driven by increased metal prices and the low cost of production

    · Cash of $38.8 million at 31 December 2020 (31 December 2019: net cash of $21.2 million)

    o Company became bank debt free in early 2020

    o Company paid dividends of $10.3 million in 2020

    · Final dividend declared in respect of FY 2020 of $0.035 per ordinary share payable on 29 July 2021 subject to approval at the Annual General Meeting giving a FY 2020 total dividend of $0.095 per ordinary share (FY 2019: $0.08 per ordinary share)

    o Dividend maintained at the same level as 2019 (excluding special dividend of $0.015 paid in 2020) to retain capital given the exceptional development opportunities in its six contract areas


    Operational Highlights

    Gedabek licence extended for a further five years

    · First of the two five-year permitted extensions of the production sharing agreement for Gedabek granted in April 2021


    FY 2020 production in line with expectations

    · 67,249 gold equivalent ounces ("GEOs") produced:

    o Gold production for FY 2020 of 56,864 ounces (FY 2019: 70,098 ounces)

    o Copper production for FY 2020 increased by 17 per cent. y-o-y to 2,591 tonnes (FY 2019: 2,210 tonnes)

    o Silver production for FY 2020 of 122,962 ounces (FY 2019: 159,356 ounces)

    · FY 2020 gold bullion sales of 48,650 ounces (FY 2019: 53,992 ounces) completed at an average of $1,777 per ounce (FY 2019: $1,410 per ounce)

    · FY 2020 copper concentrate shipments to the customer totalled 11,839 dry metric tonnes ("dmt") with a sales value of $17.7 million (excluding Government of Azerbaijan production share) (FY 2019: 10,281 dmt with a sales value of $16.7 million)

    · All-in sustaining cost ("AISC") of gold production increased to $702 per ounce (2019: $591 per ounce) due to lower production - AISC remains in the lowest quartile

    · Total production target for FY 2021 between 64,000 and 72,000 GEOs


    Chairman's statement

    The year under review has been without precedent for Anglo Asian. It commenced with the COVID-19 pandemic and ended with the conflict between Azerbaijan and Armenia. The Company's highest priority throughout the year continued to be the safety and welfare of our employees. Despite the many challenges, I am very pleased to report that the Company demonstrated its resilience by ending this exceptionally difficult year financially stronger and better positioned for growth than at the beginning.

    The Group's cash generation during the year was excellent and the Company ended 2020 with cash of $39 million and no bank debt. To ensure the Company retains sufficient capital to pursue its exciting development opportunities in all six contract areas, the board has decided to maintain the dividend (excluding the special dividend for 2020) at the same level as 2019 of US 8.0 cents per share. Accordingly, I am very pleased to declare a final dividend in respect of 2020 of US 3.5 cents per share. This will give a total dividend for the year (including the special dividend for 2020) of US 9.5 cents per share.

    I am also very pleased to report that in April 2021, the first of the two five-year permitted extensions of the production sharing agreement for Gedabek was granted. This extension demonstrates the Company's excellent relations with the Government of Azerbaijan.

    COVID-19 pandemic and the conflict between Azerbaijan and Armenia

    The COVID-19 pandemic, commencing from March 2020, severely restricted our operations in Azerbaijan. Restrictions included either curtailing or suspending domestic and international travel which affected our supply chain and movement of staff. The operations of many local businesses were suspended for much of the year. Our gold refiners in Switzerland also halted operations for a short period.

    In September 2020, conflict broke out between Azerbaijan and Armenia, which thankfully ended in November with a ceasefire agreement. Martial law was imposed throughout Azerbaijan during the period of the conflict together with a night-time curfew. Many social media and other internet services were either restricted or blocked completely. Some company employees were also conscripted for military service.

    The COVID-19 pandemic and the conflict with Armenia were extremely demanding for employees of the Company, many of whom faced new challenges, often daily. Extra health and safety measures had to be quickly put in place and many actions taken to secure our operations. It is a tribute to our employees' endeavours that the Company's operations were maintained throughout the year with only limited disruption.

    The restrictions arising from COVID-19 have remained in various forms throughout the year. They have been slowly eased from February 2021 and most restrictions within Azerbaijan have been lifted by now. However, international travel to and from Azerbaijan is still limited, but shipping gold doré to Switzerland by scheduled flights was recommenced in autumn 2020.

    Financial results and dividend

    The Company's financial performance in the year was highly satisfactory, with revenues of $102 million, compared to $92 million in 2019. Revenues were boosted by increased metal prices, with gold sales averaging $1,777 per ounce over the year, compared to $1,410 per ounce in 2019. The all-in sustaining cost of gold produced increased to $702 per ounce compared to $591 per ounce in 2019 due to the lower production as many costs are either fixed or semi-fixed. The Company ended the year with a very strong balance sheet with cash of $39 million and no bank debt after having paid $10 million of dividends in the year.

    The Company is committed to delivering returns to its shareholders and is proud to be one of the few mining companies listed on the London Alternative Investment Market which pays dividends. I am therefore delighted to announce a final dividend for the year ended 31 December 2020 of US 3.5 cents per share, giving a total dividend for 2020 of US 9.5 cents per share. This maintains the dividend at the same level as 2019, excluding the special dividend of US 1.5 cents per share paid in March 2021.

    Gedabek site - operational review and production in 2020

    In 2020, a total of 67,249 gold equivalent ounces were produced at Gedabek. Production was lower than 2019 because the Ugur open pit mine, which was providing higher grade ore, was mined out during the year. The COVID-19 pandemic and the conflict between Azerbaijan and Armenia also affected our production, due to difficulties in rotating site employees and disruptions to our supply chains. It is not feasible to quantify accurately the production lost but the directors believe it was not very significant.

    The health and safety of all of our employees and contractors is of the highest importance to Anglo Asian Mining and testament to this was reaching in July the significant milestone of one million man hours worked without a lost time injury ("LTI"). We are extremely proud of this achievement and will continue to improve our safety procedures as we work towards the target of two million LTI-free man hours. COVID-19 testing is freely available in Azerbaijan and employees and contractors are regularly tested. Social distancing and other measures are in place in line with best practice to endeavour to keep all our employees safe. A new, purpose built, staff canteen was also opened in the year to improve the wellbeing of our employees at Gedabek.

    During the year, a new portal was opened and a decline was developed into the ore body below the Gedabek main open pit. Underground mining of the richer ore below the open pit is now being carried out. The decline was also connected to the Gadir underground mine tunnelling to provide the required number of egresses for safe mining.

    An application for the first of the two, contractually allowed, five-year extensions of the production sharing agreement for the Gedabek contract area was submitted during the year. The extension was granted by the Government of Azerbaijan in April 2021.

    The Company increased the capacity of its tailings dam by 1.4 million cubic metres by raising the wall of the dam by six metres. It now has sufficient capacity until the end of 2022. This will be the last raise of the wall as the dam has reached its maximum design height. A potential site for a new tailings dam has been identified and geotechnical investigations are on-going.

    Mineral resources and geological exploration

    Sustainable production is an essential part of the Company's strategy, together with a comprehensive exploration programme to identify growth opportunities. We are now in the third year of our internally-funded, three-year exploration programme, which has been a notable success. In 2020, we reported updated JORC statements for our mines, and exploration resulted in the discovery of Zafer, an exciting copper-gold mineral occurrence within the Gedabek contract area.

    The updated resources and reserves for theGedabek open pit showed 284,000 ounces of gold and 26,000 tonnes of copper, of ore reserves remaining. The ore reserves of the Gadir underground mine are 49,000 ounces of gold and 191 tonnes of copper. Exploration is continuing across the Gedabek contract area to increase resources and reserves.

    The Zafer copper-gold deposit, conveniently located only 1.5 kilometres from the Gedabek processing plant, is an exciting discovery. The thickness and style of its mineralisation is consistent with porphyry-type mineralisation and a preliminary estimate of the deposit size is about six million tonnes of mineralised rock. An intensive drilling programme is currently underway at Zafer to produce JORC resource and reserve estimates, with a maiden resource expected to be available in June 2021.

    Exploration work at the Avshancli mineral district indicates a free-digging central zone with the possibility of mining from an open pit, beginning late this year or early 2022. At Gosha, drilling continued close to the existing underground mine and significant gold grades were encountered. It was not possible to drill at Ordubad in 2020 due to COVID-19 restrictions, although some trench sampling was carried out. It is planned to ramp up exploration in 2021 at Ordubad.

    Newly restored contract areas

    The restoration of the three contract areas in the formerly occupied territories and Karabakh opens up further opportunities for the Company. The contract areas cover a total of 900 square kilometers and contain existing mines and have exceptional exploration potential. Our production sharing agreement is in good standing and will be reset to "year zero" for each of these contract areas once access has been granted. The political situation is still developing and the Company is closely monitoring events. The Government of Azerbaijan has also commenced building infrastructure in the areas such as roads, railways and airports.

    A limited site visit to the Vejnaly contract area has been undertaken. However, due to safety and security concerns, access to Vejnaly and the other restored areas by Company personnel remains somewhat restricted. The determination of their final status continues to be reviewed by the Government of Azerbaijan.

    Production guidance for 2021

    In 2021, the Company will only be mining from its existing mines and production is forecast to decrease, mainly due to the exhaustion of the Ugur open pit in 2020. We have therefore set a production target of 64,000 to 72,000 gold equivalent ounces for 2021. This includes up to 54,000 ounces of gold and between 2,500 and 2,800 tonnes of copper. We believe our continued exploration programme and other initiatives will result in increased in production in future years.

    This 2021 guidance does not include any production from the restored contract areas. Whilst the situation is currently unclear, the Company believes there may be potential for a small amount of production from ore stockpiled at Vejnaly.

    Growth strategy

    The Group is now vigorously pursuing various opportunities for future growth. We are planning to start production from our new discoveries, possibly commencing with a small open pit mine in the central area of Avshancli-1 which may commence late this year, or early next year. Slightly longer term, Zafer has the potential for a major new underground mine at Gedabek. We are also currently in discussions with the Government of Azerbaijan regarding acquisition of new concessions in the country and we hope to be able to update our shareholders about these in the near future.

    Negotiations with Conroy Gold and Natural Resources plc for a joint venture were terminated in early 2021. It had become apparent during the negotiations that the Company had a very different vision for the joint venture to that of Conroy. We still have ambitions to develop mines outside of Azerbaijan and continue to look at other opportunities which will add value for our shareholders.

    We believe the restored contract areas and any additional concessions in Azerbaijan offer potential for growth. In addition to resuming operation of the existing mines, significant exploration potential exists on known geological trends in the restored contract areas.

    Board of Director changes

    Michael Sununu was appointed as a non-executive director in December 2020 following the departure from the board of Richard Round. I warmly welcome Michael to the board and would also like to thank Richard for his work and commitment to the Company over many years.

    Annual General Meeting for 2021

    The directors have very reluctantly taken the decision to again convene the annual general meeting for 2021 as a "closed meeting" with only the necessary quorum of two members. Whilst all United Kingdom COVID-19 restrictions are planned to end shortly before our annual general meeting, there is a possibility this could be postponed. Further, four out of five directors and the company secretary would need to travel to the United Kingdom for the meeting, which may still not be possible in late June.

    The Company has given serious consideration to holding a virtual "hybrid" annual general meeting. However, these are prone to technical problems due to the variable reliability of the internet and they do not offer face to face interaction with shareholders. The directors have therefore decided such a meeting would not offer sufficient benefits to be worthwhile.

    In accordance with the latest guidance and to ensure best practice, all voting will be by proxy and the chairman of the meeting should be appointed as the proxy. As last year, a facility will be established for shareholders to submit questions to the board prior to the annual general meeting via the Company's website. The Company will publish all relevant questions together with the Company's response, prior to the closing date for submission of proxy voting cards.

    Shareholders are strongly encouraged to 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's performance in 2020 has been a considerable achievement. Our operational competence and financial discipline leaves the Company in an excellent situation. A strong balance sheet and available capital ensures the continued future development of Anglo Asian Mining.

    Geological exploration is expected to yield further positive results with a focus on our five discoveries, particularly the exciting Zafer discovery. We have also begun to evaluate our restored contract areas with a site visit to Vejnaly. We are also in discussions to acquire new concessions in Azerbaijan.

    As a part of our plan for sustained growth and longevity, we continue to assess expansion opportunities both in Azerbaijan and other countries that will complement our existing operations and deliver substantial shareholder value.

    Anglo Asian Mining is a very well-established, low cost, debt free, dividend paying, gold, copper and silver producer in the junior mining sector. The past year has more than amply demonstrated the Company's resilience and financial performance whilst pursuing growth opportunities.

    Appreciation

    The COVID-19 pandemic and conflict with Armenia provided great challenges to all our staff in 2020. I would like to take this opportunity to thank the employees of Anglo Asian Mining, our partners, the Government of Azerbaijan and our advisors for their continued support. Our thoughts are also with the family of our employee who lost his life in the conflict. I would also like to sincerely thank the shareholders for their continued investment and support in the Company. I look forward to an exciting year and sharing our future successes with you all.

    Khosrow Zamani

    Non-executive chairman

    19 May 2021


    Dividend

    A final dividend of US$0.035 per share will be paid gross in respect of the year ended 31 December 2020 to shareholders on 29 July 2021 that are on the shareholders record at the record date of 2 July 2021 subject to approval of the shareholders at the Company's Annual General Meeting on 29 June 2021. The shares will go ex-dividend on 1 July 2021. 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 5 to 9 July 2021.
     

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