Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)'s flotation and agitation plant at its Gedabek mine in Azerbaijan will not be back up and running until 2024 though this depends on the outcome of an external review of the tailings dam, the company said in a statement.
As a result, production for the remainder of this year will only be from its heap leach operation with the forecast for the year now reduced to between 30,000-40,000oz gold equivalent.
Production in the first half of the year to end June 2023 was 23,391 equivalent gold ounces, down 19% from a year ago due to lower gold grades at Gedabek.
Reza Vaziri, chief executive, said: "The curtailment of our agitation leaching and flotation processing whilst an environmental inspection was carried out, whilst regrettable, was understandable.
“The company has fully cooperated with all Government requests to ensure the environmental inspection was carried out properly and to expedite other related matters.
“The report by Micon of the environmental inspection is currently being finalised.”
Anglo Asian ended the half year with cash of US$9.6 million (US$20.4 million) but added that until the Micon report is finalised and full operations restart there is a “material uncertainty as to the group's ability to continue as a going concern”.
The interim dividend has been scrapped.
Revenues for the first half of 2023 were US$30.8 million (£31.5 million) while profits before tax dropped to US$1.4 million (US$5.7 million) as costs rose due to lower gold production.
Vaziri concluded: "Our results for the period were satisfactory, and within expectations, given that we were predominantly only mining from our open pit mine.”