Anglo Asian Mining PLC (LON:AAZ) has reported record revenues for 2020 as higher gold prices offset disruption from coronavirus (COVID-19) and the new outbreak of fighting between Azerbaijan and Armenia.
The AIM-listed group’s Gedabek mine in Azerbaijan produced 69,000 ounces of gold equivalent ounces during 2020 compared to 82,800 a year earlier, but this decline was offset by a 26% rise in the average gold price achieved from sales to US$1,777 per ounce.
Revenues for the year topped US$100mln as a result, Anglo Asian said, while cash generation was also strong with the group paying off all of its debt and ending the year with net cash of US$21.2mln.
Production in the fourth quarter totalled 16,819 gold equivalent ounces (GEOs), compared to 21,284 GEOs in Q4 2019, with gold production of 13,534 ounces (Q4 2019: 17,907 ounces).
Reza Vaziri, Abglo Asian's chief executive, said that the year just ended had been 'without precedent and extremely demanding for Anglo Asian'.
“The year commenced with the COVID-19 pandemic gradually restricting our ability to operate normally. The second half of the year saw several weeks of conflict with Armenia,” he said in the operating and production update.
Going forward, Vaziri noted that group will continue with the exploration of five priority discoveries at Gedabek to fast track some of these into production.
“in partnership with the Government of Azerbaijan, we will start evaluating additional development of our licenses in the restored Vejnaly, Soutely and Gyzilbulakh contract areas as soon as practically possible.”