logo-loader
viewAnglo Asian Mining PLC

Anglo Asian Mining boosts cash balance in second quarter, retains 2020 guidance

The Azerbaijan-focused miner is forecasting 75,000-80,000 gold equivalent ounces for 2020 and over US$100mln in revenues at current metal prices

Anglo Asian Mining PLC - Anglo Asian Mining boosts cash balance in second quarter, retains 2020 guidance

Anglo Asian Mining PLC (LON:AAZ) has reported that it raked in an extra US$3.2mln in cash in the second quarter of 2020.

In the three months to June 30, 2020, the Azerbaijan-focused miner said its 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.

READ: Anglo Asian Mining says exploration success has brought production target of 100,000 ounces into its sights

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 coronavirus 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.

A new portal has been opened with a decline currently being constructed to allow underground mining of high-grade ore beneath the Gedabek open pit to start in the fourth quarter.

Anglo Asian also said previously leached ore with “high residual gold grades” is being recovered from old heaps and reprocessed by agitation leaching, while a new JORC resources and reserves statement is scheduled to be released by the end of the fourth quarter.

"The first half of the year has presented a number of challenges for the company. However, it is pleasing to note that we have maintained gold shipments and increased our net cash position by US$3.2mln during the quarter and by US$8mln since the start of the year”, Anglo Asian chief executive Reza Vaziri said in the production update.

"The gold price continues to perform favourably and … With prices expected to remain at these levels, this bodes well for the future financial performance of the company”, he added.

The firm's shares were 9.9% lower at 129.3p in mid-morning trading on Wednesday.

--Adds share price--

Quick facts: Anglo Asian Mining PLC

Price: 174 GBX

AIM:AAZ
Market: AIM
Market Cap: £199.04 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Anglo Asian Mining PLC named herein, including the promotion by the Company of Anglo Asian Mining PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

'Rapid development' of Clontibret gold deposit expected following Conroy...

Mining Capital's Alastair Ford discusses the Anglo Asian Mining PLC (LON:AAZ) and Conroy Gold and Natural Resources PLC (LON:CGNR) joint venture announced this week. The idea is to further develop the Longford Down Massif gold project in Ireland, which up until now has been worked solely by...

1 week, 6 days ago

2 min read