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Anglo Asian Mining Plc (ISE:AAZ)

Anglo Asian Mining Plc (ISE:AAZ)


Share Price
66.00 p
Change
-0.5 (-0.75 %)
Market Cap
£75.45 m
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Anglo Asian Mining Plc RNS Release

FY2018 Production Guidance of 78,000 - 84,000 GEOs


RNS Number : 9506D
Anglo Asian Mining PLC
06 February 2018
 

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

 

6 February 2018

 

Anglo Asian Mining plc

Production Guidance for Full Year 2018

 

 Over 13 per cent. increase in 2018 production compared to the previous year to 78,000 - 84,000 gold equivalence 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 production guidance for the year ended 31 December 2018 ("FY 2018").

 

Overview

 

·    Forecast production for FY 2018 of between 78,000 to 84,000 gold equivalent ounces ("GEOs"), an increase for the mid-point of this guidance of over 13 per cent. compared to FY 2017 production of 71,461 GEOs

·    Forecast production for FY 2018 of between 64,000 to 70,000 ounces of gold (FY 2017: 59,617 ounces of gold produced) and between 2,100 to 2,300 tonnes of copper (FY 2017: 1,991 tonnes of copper produced)

·    Increase in total anticipated production during 2018 resulting from the optimisation initiatives undertaken at Gedabek in 2017, with continuation of production from the new Ugur open pit and Gadir underground mines and recommencement of mining in the Gedabek main open pit

·    Start-up of second crusher line for the flotation plant in Q2 2018 will enable copper production to increase

 

Anglo Asian CEO Reza Vaziri commented, "2018 is shaping up to be a year of delivery for Anglo Asian with production of between 78,000 to 84,000 gold equivalent ounces planned by our operational team. The mid-point of this guidance is over 13 per cent. higher than FY 2017 production and continues the upward trajectory from last year which we believe will continue in the coming years. As in previous years, the second half of 2018 is expected to be better than the first due to seasonal factors and the added momentum of the flotation plant processing on a stand-alone basis from Q2 2018.

 

"Key to the future growth of the Company will be expansion opportunities and with this objective we are commencing a substantial geological exploration programme at Gedabek. I look forward to reporting details of this programme in the coming weeks."

 

Assumptions

The production guidance has been calculated using the following budgeted metal prices for 2018:

 

-     Gold: $1,250 per ounce

-     Silver: $17 per ounce

-     Copper: $6,800 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 2018 with the Government of Azerbaijan under the Company's existing production sharing agreement.

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

**ENDS**

 

 

For further information please visit www.angloasianmining.com or contact:

 

Reza Vaziri

Anglo Asian Mining plc

Tel: +994 12 596 3350

Bill Morgan

Anglo Asian Mining plc

Tel: +994 502 910 400

Stephen Westhead

Anglo Asian Mining plc

Tel: +994 502 916 894

Ewan Leggat

SP Angel Corporate Finance LLP

Nominated Adviser and Broker

Tel: +44 (0) 20 3470 0470

Soltan Tagiev

SP Angel Corporate Finance LLP

Tel + 44 (0) 20 3470 0470

Susie Geliher

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

Lottie Wadham

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

 

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

The Company's main operating location is the Gedabek contract area ("Gedabek") which is a 300 square kilometer area in the lower Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009.  Mining at Gedabek was initially from its main open pit which is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site, In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.

The Company produced 71,461 gold equivalent ounces ('GEOs') for the year ended 31 December 2017.  Gedabek is a polymetallic project which demonstrates a high copper content at the main open pit mine, and an oxide gold-rich zone at Ugur.  The Company therefore employs a series of flexible processing routes through which to optimise recoveries and efficiencies.  The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant, which is processing tailings from the agitation leach plant. A second dedicated crusher line is also currently being installed for the flotation plant to enable it to operate independently of the agitation leaching plant.

Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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