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Anglo Asian Mining sees lower gold production this year, higher copper output

Total metal production for 2021 is expected to be 64,000-72,000 gold equivalent ounces versus the 67,249 gold equivalent ounces achieved last year

Anglo Asian Mining PLC -

Anglo Asian Mining PLC (LON:AAZ) expects its gold production to fall this year, as the Ugur mine in Azerbaijan has now been depleted, although it forecast an increase in copper output.

The AIM-listed miner forecast gold production of between 48,000 and 54,000 ounces this year, down from the 56,864 ounces achieved in 2020, as it will mine only from the existing Gedabek and Gadir mines in 2021 with no contribution from Ugur.

"This year we will only be mining from our existing Gedabek open pit and Gedabek and Gadir underground mines,” said chief executive Reza Vaziri.

“However, we are expecting an increase in copper production as we take more ore from the Gedabek open pit. The first quarter's production and the full-year production guidance reflect this fact,” he said.

Copper output is expected to rise to between 2,500 and 2,800 tonnes, up from the 2,591 tonnes achieved last year.

The production forecast assumes no contribution from the three restored contract areas in Nagorno Karabakh during 2021.

Total metal production for 2021 is expected to be 64,000 to 72,000 gold equivalent ounces versus actual output of 67,249 gold equivalent ounces last year.

It produced 15,810 gold equivalent ounces, using budgeted metal prices, in the first quarter of this year. First-quarter gold production fell to 11,907 ounces, from 15,867 ounces in the year-earlier quarter, while copper output rose 14% to 638 tonnes and silver production grew 2% to 35,365 ounces.

Anglo Asian had cash of US$22.9mln at the end of March 2021 and an unsold gold doré and copper concentrate inventory of US$15.2mln.

Some gold doré production from the quarter was not shipped to the refiner until April to minimise shipping costs. It sold 2,000 ounces of the contained gold bullion on April 6 for US$3.5mln.

The company continued its exploration programme in 2020.

“We are looking forward to starting to reap the benefits of this exploration with production next year from Avshancli,” said CEO Vaziri.

“The drilling results from Zafer continue to be encouraging and we have now engaged third-party consultants to provide indicative estimates of resources.

“We are also just starting to understand the potential of the newly restored contract areas. A recent visit to the Vejnaly contract area in Zangilan has identified some high-grade ore stockpiles and the feasibility of transporting this ore to Gedabek for processing is being evaluated.”

Quick facts: Anglo Asian Mining PLC


Price: 124 GBX

Market Cap: £141.85 m

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