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Gold & silver

Anglo Asian sees 2015 as turnaround year

Anglo Asian shares nudged higher on Monday as it said 2015 had started well and it expects gold production of between 70 and 75,000 ounces for the whole year...

Anglo Asian (LON:AAZ) shares nudged higher on Monday as it said 2015 had started well and it expects gold production of between 70 and 75,000 ounces for the whole year.

That will be a 16 to 24% improvement on 2014, it said at the AGM today.

At Gedabek in Azerbaijan, output in the first half has been strong with first quarter 2015 production of 17,053 ounces of gold - a 52% increase on Q1 2014.

"In addition, Q2 2015 looks to be similarly encouraging with 11,839 ounces of gold produced in April and May 2015," the firm said.

Following the recent updated ore reserve estimate, the miner is also building a small scale flotation plant which is due to be completed in the third quarter, which if achieved, should mean an additional 5,000 ounces of gold and 1,200 tonnes of copper produced in full year 2015.

The miner noted the difficulties for gold companies over the past year, including Anglo, with lower metal prices, together with the first full year's operational cost of the agitation leach plant at Gedabek, adversely impacting profitability in 2014.

"However, 2015 marks an important year for our Company and a time which we believe marks our turnaround strategy to restore profitability for Anglo Asian," it told investors.

Anglo Asian shares added 2.71% to 5.125p.

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