Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said it had made an encouraging start to 2025 and expected the newly producing Gilar mine to deliver a significant contribution to output this year, as operations resumed across its portfolio in Azerbaijan following last year’s production curtailments.
The Azerbaijan-focused group produced 8,085 gold equivalent ounces in the first quarter and confirmed the Gilar underground mine had entered production in May. Output from Demirli, another recently accessed contract area, is expected to begin in the second half of the year.
CEO Reza Viziri said the miner had made 'considerable progress' across its developmental portfolio.
"As a result of this progress, the Gilar mine has entered production in May and Demirli will enter production in the second half of 2025. We continue to make progress with Garadag and Xarxar.
In its full-year results to 31 December 2024, Anglo Asian reported a fall in revenue to $39.6 million from $45.9 million the previous year.
Production was constrained throughout 2024 following the suspension of agitation leaching and flotation processing at Gedabek, where ore grades declined as the open pit and adjacent Gadir underground mine approach end of life.
Despite the lower revenues, the group narrowed its loss before tax to $21.3 million, compared with a $32 million loss in 2023.
This was attributed to tighter cost control and the absence of impairments that had impacted the prior year. Net debt rose by $4.4 million to $14.7 million, reflecting disciplined cash and working capital management.
Total production fell to 16,760 gold equivalent ounces, in line with revised guidance. Sales of gold bullion reached 15,251 ounces at an average price of $2,432 per ounce, up from $1,951 in 2023.
Copper concentrate sales dropped sharply to 1,519 dry metric tonnes from 11,192 tonnes the previous year, generating $2.5 million excluding the government’s production share.
Anglo Asian highlighted progress across its development pipeline, including the completion of the first stage of a tailings dam raise at Gedabek and the publication of Joint Ore Reserves Committee (JORC) resource estimates for Xarxar and Garadag.
The group’s total JORC-compliant resources now stand at 328,000 ounces of gold and over one million tonnes of copper.
The company said its current asset base, including the Gilar and Demirli projects as well as future developments at Xarxar and Garadag, supported its ambition to become a mid-tier copper-focused producer.
Updated production guidance for the full year will be provided once operations at Demirli are underway.