What it does
Its key operations span three contract areas in Azerbaijan covering 1,062 square kilometres: Gedabek, Gosha and Ordubad.
Three additional contract areas covering 900 square kilometres are held in occupied territories which will be developed when the political situation allows.
In July 2020 it entered Ireland via a joint venture with Conroy Gold and Natural Resources.
How it is doing
In July, Anglo Asian formed a joint venture with Conroy Gold and Natural Resources PLC (LON:CGNR) for the further development of the Longford Down Massif gold project in Ireland, hitherto held and worked solely by Conroy.
Anglo Asian is to acquire up to a 55% interest in the project by investing in stages. The initial 17.5% will be earned by Anglo Asian investing €2mln in further exploration.
Its interest will increase progressively to 55% if it develops the Clontibret gold deposit to mine construction-ready status.
The Conroy licences in question cover over 800 square kilometres in a major gold district in the north-east of the island of Ireland, known as the Longford Down Massif, which contain significant gold targets including Clontibret, where there is an existing 500,000-ounce resource, and Clay Lake, which has long been considered highly prospective.
In the three months to June 30, the cash balance stood at US$29.2mln at the end of the period, while gold production in the quarter had come in at 12,048 ounces (oz) compared to 17,149 oz in the prior year.
Anglo Asian said the lower figure was due to lower ore grades processed from its Gedabek open pit operation, which had been its efficiency impacted by the pandemic, and less ore from the Gadir underground mine.
However, gold bullion sales in the period had benefitted from higher prices of the yellow metal, with Anglo Asian selling 12,743 oz at an average price of US$1,713 per oz compared to 13,467 oz at US$1,332 in 2019. Copper production, meanwhile, increased to 648 tonnes from 448 in 2019, while silver output totalled 23,884 oz compared to 33,058 oz a year ago.
Looking ahead, the firm reiterated its full-year production guidance of 75,000-80,000 gold equivalent ounces and over US$100mln in revenues at current metal prices, adding that it has taken various measures to increase production in the second half of the year.
What the boss says: Stephen Westhead, director of geology & mining
“Exploration of the near-surface gold targets at Gedabek are taking priority to rapidly develop mineral resources and advance mineral deposits towards production. Both Avshancli and Gilar will be explored by ground-based induced polarisation and magnetic geophysics in the second half of the year.”
“Deeper drilling at Ugur and Zafer have yielded significant copper intersections and zones of extensive sulphide mineralisation, which provide for a secondary layer of future resource development."
"Ordubad exploration was hampered by COVID-19 travel restrictions and only trench work was carried out during the first half of the year on the recently discovered gold vein systems."
- Joint venture with Conroy
- Gets full benefit of strong gold price
- Exploration boosts resources across its three mines