Big picture - Why invest in Anglo Asian Mining Plc
Anglo Asian Mining Plc Snapshot
Anglo Asian Mining PLC is listed on AIM (AAZ) and has a portfolio of gold, copper and silver exploration and production properties in Azerbaijan. The Company’s key operations span three contract areas in Azerbaijan covering 1,062 square kilometres. Three additional contract areas covering 900 square kilometres are held in territories occupied by Armenia. The Company started to produce gold in May 2009 at its main Gedabek gold and copper mine located in western Azerbaijan. The mine is an open pit operation. In addition, in late 2014, the Company started to develop an underground mine, Gadir, on the Gedabek property.
The Company has a second mining project, the 300 square kilometre Gosha contract area located 50 kilometres north-west of Gedabek. Gosha is currently being developed as a small, high grade, underground gold mine.
Ore mined at Gedabek and Gosha is processed to produce either gold doré or a copper and precious metals concentrate using several industrial processes:
- Heap leaching of crushed and Run of Mine (ROM) ore
- Agitation leaching
- Sulphidisation, Acidification, Recycling and Thickening ("SART")
The Company is also constructing a small scale flotation plant at Gedabek primarily to produce copper to exploit the copper content of the ore at Gedabek and provide a path for future development of the contract area.
The Company also has a third property, Ordubad, an early stage gold-copper exploration property located in the Nakhchivan region of Azerbaijan.
Gedabek contract area
- 300 square kilometre licence area
- Mining and exploration rights until March 2022
- Gedabek gold, copper and silver open pit mine
- 60,285 ounces of gold and 784 tonnes of copper produced in 2014
- New JORC reserve report in 2014 showing 682,000 ounces of gold, 102,000 tonnes of copper and 4.84 million ounces of silver.
- Gadir underground mine being developed at Gedabek, close to existing open pit
- All processing of ore carried out at Gedabek
- Small scale flotation plant under construction to exploit copper content of ore
Gosha contract area
- 300 square kilometre licence area
- Being developed as a small, high grade mine
- Ore mined at Gosha is transported to Gedabek for processing
- Non-JORC resource of about 40,000 ounces of gold
- 28,892 tonnes of ore at an average grade of 4.15 grammes per tonne mined in 2014.
Ordubad contract area
- 462 square kilometre licence area
- Notice of discovery disclosed
- Exploration underway
Additionally, the Company has a 900 square kilometre land holding in the occupied territories which will be developed when the political situation allows.
The Republic of Azerbaijan, which gained independence from the Soviet Union in 1991, is a politically stable democracy. The country has an established democratic government, which is fully supportive of international investment initiatives.
The mining code is fledgling and runs under the guidance of the Ministry of Ecology and Natural Resources. The country has an established oil industry, with more than 15 major oil and gas companies with PSAs with the Azeri Government including BP, which has been operating in the country since 1994, and Exxon Mobile.
Infrastructure is reasonably extensive. Low cost labour is also available.
The country is situated in South-Western Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range. Azerbaijan covers an area of over 86,000 square kilometres, ranging from the flat Kura-Araz Lowland with Great Caucasus Mountains to the north to the Karabakh Upland in the west. The climate is semi-arid, with cold winters and hot summers.
Anglo Asian Mining PLC's operations span three contract areas in Azerbaijan covering 1,062 square kilometres.
Gedabek – where the Company operates an open pit mine and is developing an underground mine – Gadir
Gosha – which the Company is developing as a small, high grade mine
Ordubad – an early stage gold and copper exploration property located in the Nakhchivan region of Azerbaijan
The Company processes all its ore at the Gedabek site using predominantly heap and agitation cyanide leaching. It is also building a small scale flotation plant to exploit the high copper content of the ore.
Tethyan Tectonic Belt
Anglo Asian Mining PLC's assets are located within one of the world's significant gold and copper bearing belts, the Tethyan Tectonic Belt, which extends from Pakistan to the Balkans running through Iran, Azerbaijan, Georgia and Turkey.
The major operating mines within the Tethyan Tectonic Belt contain porphyry copper deposits that are some of the largest sources of copper in the world and also yield significant quantities of gold and molybdenum.
Major copper, gold and molybdenum deposits in the belt include:
Sar Chesmeh & Sungun (500 mt at 0.75% Cu, 0.01% Mo) in Iran
Kadjaran (400 mt at 0.27% Cu, 0.055% Mo, 0.03 g/t Au) & Agarak (45 mt at 0.46% Cu, 0.027% Mo, 0.025 g/t Au) in Armenia
Tekhout & Zod (4.3 mt at 7.3 g/t Au) in Armenia
Cayeli (20 mt at 4.2% Cu, 0.8 g/t Au) and Cerateppe (3 mt at 5.1% Cu) in Turkey
Madneuli (23.5 mt at 1.03 g/t Au) in Georgia
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Vice president – Government affairs, Azerbaijan International Mining Company Limited
Abduljabar Ahmadov, Vice-President Government Affairs, has wide range of experience in the oil industries starting in 1988. He has served at various positions in the SOCAR, from Chief of Reserves Department to Advisor to the President and Advisor to BP President on ACG Project. In these senior positions, Abduljabar has taken an active role in preparation and signing of 27 PSAs and was one of the responsible executors of various projects such as Chirag platform, construction of Baku-Supsa, Baku-Novorossiysk, BTC, SCP (Baku-Erzerum) pipe lines, ACG project, etc. Abduljabar has a Ph.D. in geology.
Senior Vice President, Azerbaijan International Mining Company Limited
Mehrdad Etemad, Senior Vice President of Azerbaijan International Mining Company since 2008, holds an M.Sc. in Industrial Engineering from California State University and a B.Sc. in Mechanical engineering from University of California, Berkeley. Mehrdad has 14 years of experience in consultancy work for the private sector as well as for the World Bank Group which included development and implementation of supply chain systems, implementation of corporate social responsibility (CSR) programs and SME development. Prior to consulting work, Mehrdad had 25 years of experience in setup, start up and operations of medium and large enterprises in the USA, the Balkans, Middle East and China.
Vice President Technical Services, Azerbaijan International Mining Company Limited
Farhang Hedjazi oversees all mining and exploration activities. He joined AIMC in July 2008 as project manager, overseeing the design and construction of the Gedabek mine, comprising the heap leaching and SART facilities. He served as technical advisor to the President from 2009 to 2011 when he was appointed as Vice President Technical Services. He has worked for the National Iranian lead and zinc company as chief process engineer from 1986 to 1989. He then founded Kahanroba engineering company. He has designed and constructed several zinc smelters, gold CIL plants, gold heap leach facilities and has managed underground mining facilities. He has an M.Sc. degree in non-ferrous extractive metallurgy, and has worked in this field since 1985.
Chief Financial Officer, Anglo Asian Mining PLC
Bill Morgan is a UK chartered accountant with over 30 years accountancy and financial management experience. He has worked in the UK, the Far East, Kazakhstan and Russia. Previously, he was regional financial officer for the Kinross Russia region based in Magadan, Russia. Between 2006 and 2012 was CFO of Hambledon Mining PLC, an AIM listed gold mining company, and was based in Kazakhstan. He has been instrumental in several successful start-ups and restructuring of companies in the telecoms and mining industries. Bill speaks Russian.
Health, Safety and Environmental ("HSE") manager, Azerbaijan International Mining Company Limited
Tarkan Yazici is a safety expert and professional health, safety, environment and security manager with 18 years of experience in mining and processing in Turkey. He has been an OHSAS 18001 lead auditor. Tarkan graduated from the Middle East Technical University, Ankara, Turkey with a B.Sc. in Mining Engineering.
Shareholders as of 7 June 2016
|Governor John Sununu||10,734,540||9.528|
|Limelight industrial developments||4,038,600||3.585|
|Prof John Monhemius||341,890||0.303|
The Company is subject to the UK City Code on Takeovers and Mergers.
Anglo Asian Mining plc
20, 520 Yard
Huseyn Javid Avenue
The Republic of Azerbaijan
Telephone +994 (12) 596 3350
Facsimile +994 (12) 596 3354
Email [email protected]