AGM Statement

RNS Number : 2363C

Anglo Asian Mining PLC

27 June 2016

 

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

27 June 2016

Anglo Asian Mining plc

Annual General Meeting Statement

Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is holding its annual general meeting ('AGM') at 11.00 am today at the offices of Squire Patton Boggs (UK) LLP, 7 Devonshire Square, Cutlers Gardens, London EC2M 4YH.  At the meeting Reza Vaziri, the Company's CEO, will make the following statement:

"The past year was another important year in turning around your Company and it saw us achieve record gold production. We have been highly active as we have focused on development at Gedabek in Azerbaijan and on increasing our gold, copper and silver production at the lowest possible cost.

"We were therefore delighted to report total gold production for 2015 of 72,032 ounces, a 19 per cent. increase over 2014 and copper production of 969 tonnes, a 24 per cent. increase over 2014. We were also pleased to announce that our average cash operating cost per ounce of gold in 2015 reduced significantly to US$724 from US$971 in 2014.

"Whilst we achieved record production, as reported in our final results, the previous year was still not profitable for Anglo Asian as the global environment for mining companies remained poor. However, despite lower average metal prices, Anglo Asian was able to increase turnover to US$78.1 million from US$68.0 million in 2014 and narrow its loss before tax to US$8.9 million from US$14.4 million in 2014. This is a very credible result given the poor environment.

"The successful launch of our flotation plant in the latter part of 2015 was an important milestone in the development of your company. The successful completion of this project and at a cost of US$4.5 million is a credit to all involved. Commissioning encountered a few teething problems but these have now been overcome and as a result production from the flotation plant is currently being ramped up.

"The production in the first quarter of this year unfortunately saw a slow-down due to winter weather conditions and poorer grades. However, we have seen a significant pick up in gold doré production since the beginning of April due to better grades. The second semi-autogenous grinding ("SAG") mill is now in place at Gedabek and is being commissioned. The Company has also started on several initiatives to improve the sustainability and lower the costs at Gedabek. The optimisation of the flotation plant continues and we have also seen a significant pick up in the production of copper and gold concentrate since the beginning of April.

"Given the encouraging pick up of production in the second quarter and the resultant expected H1 2016 production performance (full second quarter production figures will be announced mid-July) we remain positive that we will achieve our gold production target of between 73,000 to 77,000 ounces and our copper production target of 1,700 to 2,100 tonnes of copper for the full year 2016.

"We are confident on the outlook for 2016 and delivery of our strategy to return your company to profitability. I would like to note that the market appears to be watching these achievements and I have been greatly encouraged to see the recent rise in Anglo Asian's share price. I hope that this can continue so that the share price will eventually reflect the inherent value of your company. I look forward to updating shareholders on our progress throughout the rest of the year.

"Finally, I would like to take this opportunity to thank our Anglo Asian shareholders for their continued support as we continue to build the Company into a leading mid-tier profitable gold, copper and silver producer in Azerbaijan and Caucasia."  

**ENDS**

For further information please visit www.angloasianmining.com or contact:

Reza Vaziri	Anglo Asian Mining plc	Tel: [phone]
Bill Morgan	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	SP Angel Corporate Finance LLP Nominated Adviser and Broker	Tel: [phone]
Laura Harrison	SP Angel Corporate Finance LLP	Tel + 44 (0) 20 3470 0470
Lottie Brocklehurst	St Brides Partners Ltd	Tel: [phone]
Susie Geliher	St Brides Partners Ltd	Tel: [phone]

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.  The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

The Company developed Azerbaijan's first operating gold/copper/silver mine, Gedabek, which commenced gold production in May 2009.  Gedabek is an open cast mine with a series of interconnected pits. The Company is also mines high grade ore from the Gadir underground mine which is co-located at the Gedabek site. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.

Gold production for the year ended 31 December 2015 from Gedabek totaled 72,032 ounces with 969 tonnes of copper also produced.  Gedabek is a polymetallic deposit and its ore has a high copper content, and as a result the Company produces copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant. Anglo Asian also produces a copper and precious metal concentrate from its flotation plant, which commenced production in the last quarter of 2015. This is initially processing tailings from the agitation leach plant.

Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.

 

END

 

 

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