Anglo Asian Mining PLC (LON:AAZ) shares rose on Wednesday as the firm reported an 11% year-on-year rise in first-quarter production from the Gedabek gold, copper and silver mining contract area in western Azerbaijan and saw its net cash increase by 77% to US$10.8mln.
In a production and operations review for the three months to 31 March 2019, the AIM-listed group said it produced 20,287 gold equivalent ounces in the period, up from 18,307 GEOs in the first quarter of 2018.
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The company said gold production increased by 5% year-on-year in the first quarter to 17,245 ounces, up from 16,491 ounces a year earlier, due to increased gold production by flotation processing.
It added that copper production in the period doubled year-on-year to 513 tonnes, up from 255 tonnes a year earlier, also due to flotation processing operating throughout the quarter in parallel with gold doré production by leaching.
Anglo Asian also pointed out that a landmark total of 20 metric tonnes of gold equivalent produced by Gedabek since the start of operations in 2009 was achieved during the quarter.
The group said its net cash as at 31 March 2018 totalled US$10.8mln, up from US6.1mln as at 31 December 2018 with gross cash at US$17.7mln as at 31 March 2019, up from US$8.6mln a year earlier.
Excellent Q1 performance
Anglo Asian CEO Reza Vaziri commented: “The first quarter of the year is historically the poorest quarter of the year due to winter weather, so an 11% year-on-year increase, including a doubling of copper production, demonstrates excellent performance.
“I am also very pleased to report that over 20 metric tonnes of gold equivalent have now been produced since the Company started operations at Gedabek in 2009.”
He concluded: “Notably, the Company continues to generate cash with our net cash balance increasing by US$4.4mln despite a US$3mln payment of corporate taxation in the quarter."
In afternoon trading, shares in Anglo Asian Mining were 8.2% higher at 79p.
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