Anglo Asian Mining Plc (LSE:AAZ, OTC:AGXKF, FRA:A4A) told investors that first-quarter copper production surged almost sevenfold as its Demirli mine helped drive a sharp step-up in output, while stronger sales and lower debt pushed the group deeper into net cash.
The Azerbaijan-focused producer turned out 3,711 tonnes of copper in the three months to 31 March, up from 534 tonnes a year earlier.
Of that total, 1,462 tonnes came from flotation and SART at Gedabek and 2,249 tonnes from flotation at Demirli.
Gold production was broadly steady at 6,062 ounces, compared with 6,028 ounces in the prior-year quarter, while silver output rose to 42,796 ounces from 30,315 ounces.
It booked total concentrate sales of 18,553 dry metric tonnes worth $45.6 million, including $24.2 million from Gedabek and $21.4 million from Demirli. Gold bullion sales were 4,100 ounces at an average of $4,728 per ounce, sharply above the $2,843 per ounce achieved a year earlier.
That translated into a stronger balance sheet with cash increasing to $37.2 million at the end of March, from $30.2 million at the end of December, while debt fell to $19.5 million from $27.9 million.
Net cash rose by $15.4 million during the quarter to $17.7 million, with unsold gold doré and copper concentrate inventory valued at $30.8 million.
Chief executive Reza Vaziri said the quarter showed continued progress in the group’s strategy to expand copper production and transition into a multi-asset, mid-tier copper-focused producer.
"We are delighted with the progress and performance during the quarter. The excellent copper production from Gedabek and Demirli demonstrates the successful continuing execution of our clear strategy," Vaziri said.