Q1 2024 Production and Operations Review

Anglo Asian Mining PLC

17 April 2024

 

17 April 2024

Anglo Asian Mining plc

Q1 2024 Production and Operations Review

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, provides the following production, sales and operational review for its Gedabek contract area ("Gedabek") in western Azerbaijan for the three months to 31 March 2024 ("Q1 2024", or the "Quarter").

Production was significantly reduced during the Quarter due to operations remaining partially shut down as the Company awaits permission to raise its tailings dam wall, which it expects to receive shortly. Gold production from heap leaching and copper production from SART continued throughout the Quarter.

Q1 2024 Production update

·    Total production of 2,548 gold equivalent ounces ("GEOs") (Q1 2023: 10,969 GEOs)

o Copper production of 54 tonnes (Q1 2023: 847 tonnes)

o Gold production of 2,252 ounces (Q1 2023: 6,741 ounces)

o Silver production of 6,410 ounces (Q1 2023: 22,566 ounces)

Q1 2024 Sales and cash update

·    Total gold bullion sales of 3,925 ounces at an average of $2,080 per ounce (Q1 2023: 5,719 ounces at an average of $1,895 per ounce)

·    The Group has maintained a strong focus on cash and strict cost control, with a net debt position of $10.9 million at 31 March 2024 (31 December 2023: $10.2 million)

·    Net cash outflow in Q1 2024 of only $0.7 million due to sale of opening inventory along with strong cost control

·    Inventory valued at $2.0 million at 31 March 2024 (31 December 2023: 2,506 ounces of gold valued at $6.9 million and copper concentrate valued at $0.2 million)

Outlook

·    The Group submitted all necessary documents by 14 March 2024 to the Government of Azerbaijan to raise the tailings dam wall and is now awaiting receipt of the permission

·    Receipt of the permission will enable the resumption of normalised production at Gedabek and, at this stage, the Company will accordingly issue guidance for the full year 2024

·    The Company continues to prioritise the progression of its development portfolio with first production from the new Gilar mine now planned for Q4 2024

Anglo Asian CEO Reza Vaziri commented:

"Amid what has been a challenging time for the Company, we have made important operational progress and our portfolio of development assets is progressing in line with our expectations. We await Government permission to raise our tailings dam wall, a necessary step for resuming normal production levels and our ability to issue production guidance for the year. We anticipate the permit will be issued shortly and this will enable us to take advantage of the current strong metal prices for the benefit of all our stakeholders".

Note that all references to "$" are to United States dollars.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

Anglo Asian Mining plc
Reza Vaziri, Chief Executive Officer	Tel: [phone]
Bill Morgan, Chief Financial Officer	Tel: [phone]
Stephen Westhead, Vice President	Tel: [phone]
SP Angel Corporate Finance LLP (Nominated Adviser and Broker) Ewan Leggat Adam Cowl	Tel: [phone]
Hudson Sandler (Financial PR) Charlie Jack Harry Griffiths	Tel: [phone]

Notes to editors

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer with a high-quality portfolio of production and exploration assets in Azerbaijan. The Company produced 31,821 gold equivalent ounces ("GEOs") for the year ended 31 December 2023. 

On 30 March 2023, the Company published its strategic plan for growth which shows a clearly defined path for the Company to transition to a multi-asset, mid-tier, copper and gold producer by 2028, by which time copper will be the principal product of the Company, with forecast production of around 36,000 copper equivalent tonnes. It plans to achieve this growth by bringing into production four new mines during the period 2024 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

https://www.angloasianmining.com/

Q1 2024 Production overview

·    Gold production of 2,252 ounces (Q1 2023: 6,741 ounces):

o 2,245 ounces contained within gold doré

o 7 ounces from sulphidisation, acidification, recycling and thickening ("SART") processing

·    Copper production of 54 tonnes (Q1 2023: 847 tonnes) from SART processing

·    Silver production totalled 6,410 ounces (Q1 2023: 22,566 ounces):

o 1,517 ounces contained within gold doré

o 4,893 ounces from SART processing

Q1 2024 Sales overview

·    Total gold bullion sales of 3,925 ounces at an average of $2,080 per ounce (Q1 2023: 5,719 ounces at an average of $1,895 per ounce)

·    Total concentrate sales of 71 dry metric tonnes ("dmt") with a value of $0.3 million (Q1 2023: 1,147 dmt with a value of $2.7 million)

·    800 ounces of gold bullion was sold for $2,006.32 per ounce under the Group's hedging program on 31 January 2024 generating lower revenue of $27,000 compared to the closing spot price on the day

Q1 2024 Financials overview

·    Cash of $9.8 million ($10.5 million at 31 December 2023)

·    Debt unchanged at $20.7 million ($20.7 million at 31 December 2023)

·    Net debt of $10.9 million ($10.2 million at 31 December 2023)

·    Unsold gold doré and copper concentrate inventory of $2.0 million

The Company mined the following ore during FY 2023 and Q1 2024:

	12 months to  31 December 2023		3 months to 31 March 2024
Mine	Ore mined	Average gold grade	Ore mined	Average gold grade
	(tonnes)	(g/t)	(tonnes)	(g/t)
Open pit	1,180,695	0.38	186,122	0.81
Gadir - u/g	109,320	1.64	50,964	2.18
Gedabek - u/g	-	-	-	-
Total	1,290,015	0.49	237,086	1.10

The Company processed the following amounts and grades of ore by leaching for FY 2023 and Q1 2024:

Quarter ended	Ore processed			Gold grade of ore processed
	Heap leach pad crushed ore (tonnes)	Heap leach pad ROM ore (tonnes)	Agitation leaching plant* (tonnes)	Heap leach pad crushed ore (g/t)	Heap leach pad ROM ore (g/t)	Agitation leaching plant* (g/t)
31 March 2023	94,518	196,595	62,006	0.74	0.49	1.3
30 June 2023	56,522	202,788	105,213	0.75	0.46	1.4
30 September 2023	25,690	34,621	-	0.83	0.45	-
31 December 2023	-	-	-	-	-	-
FY 2023	176,730	434,004	167,219	0.76	0.48	1.4
31 March 2024	120,528	-	-	0.68	-	-

* includes previously heap leached ore.

The Company processed the following amounts of ore and contained metal by flotation for FY 2023 and Q1 2024:

Quarter ended	Ore processed	Gold content	Silver content	Copper content
	(tonnes)	(ounces)	(ounces)	(tonnes)
31 March 2023	192,516	1,487	19,787	1,133
30 June 2023	190,593	1,033	10,380	1,191
30 September 2023	62,369	478	4,358	363
31 December 2023	-	-	-	-
FY 2023	445,478	2,998	34,525	2,687
31 March 2024	-	-	-	-

The following table summarises gold doré production and sales at Gedabek for FY 2023 and Q1 2024:

Quarter ended	Gold produced* (ounces)	Silver produced* (ounces)	Gold sales** (ounces)	Gold Sales price ($/ounce)
31 March 2023	5,965	2,841	5,719	1,895
30 June 2023	7,375	3,593	4,787	1,992
30 September 2023	4,001	1,488	2,900	1,949
31 December 2023	2,975	1,610	2,416	2,004
FY 2023	20,316	9,532	15,822	1,951
31 March 2024	2,245	1,517	3,925	2,080

Note

* including Government of Azerbaijan's share

** excluding Government of Azerbaijan's share

The gold and silver production from agitation and heap leaching for FY 2023 and Q1 2024 is as follows:

Quarter ended	Gold			Silver
	Agitation leaching (ounces)	Heap leaching (ounces)	Total (ounces)	Agitation leaching (ounces)	Heap leaching (ounces)	Total (ounces)
31 March 2023	2,105	3,860	5,965	1,077	1,764	2,841
30 June 2023	3,463	3,912	7,375	1,735	1,858	3,593
30 Sept 2023	-	4,001	4,001	-	1,488	1,488
31 Dec 2023	-	2,975	2,975	-	1,610	1,610
FY 2023	5,568	14,748	20,316	2,812	6,720	9,532
31 March 2024	-	2,245	2,245	-	1,517	1,517

The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2023 and Q1 2024:

	Concentrate	Copper	Gold	Silver
	production*	content*	content*	content*
	(dmt)	(tonnes)	(ounces)	(ounces)
2023
Quarter ended 31 March
SART processing	364	191	26	8,750
Flotation	4,544	665	762	11,095
Total	4,908	856	788	19,845
Quarter ended 30 June
SART processing	272	145	16	10,316
Flotation	5,613	869	479	8,101
Total	5,885	1,014	495	18,417
Quarter ended 30 September
SART processing	85	43	4	2,194
Flotation	1,316	207	151	1,974
Total	1,401	250	155	4,168
Quarter ended 31 December
SART processing	29	18	4	1,264
Flotation	-	-	-	-
Total	29	18	4	1,264
2024
Quarter ended 31 March
SART processing	89	54	7	4,893
Flotation	0	-	-	-
Total	89	54	7	4,893

Note

* including Government of Azerbaijan's share.

Certain amounts for SART and flotation production may differ to those previously disclosed due to final reconciliation of production.

The following table summarises total copper concentrate production and sales for FY 2023 and Q1 2024. Note that sales of concentrates are initially recorded at provisional amounts until agreement of final assay:

	Concentrate	Copper	Gold	Silver	Concentrate	Concentrate
	production*	content*	content*	content*	sales**	sales**
	(dmt)	(tonnes)	(ounces)	(ounces)	(dmt)	($000)
Quarter ended
31 March 2023	4,908	856	788	19,845	1,147	2,743
30 June 2023	5,885	1,014	495	18,417	5,501	7,678
30 September 2023	1,401	250	155	4,168	2,358	3,066
31 December 2023	29	18	4	1,264	2,186	2,306
FY 2023	12,223	2,138	1,442	43,694	11,192	15,793
31 March 2024	89	54	7	4, 893	71	295

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

Q1 2024 Financial review

The Company's net debt increased from $10.2 million at 31 December 2023 to $10.9 million at 31 March 2024 as follows:

	$million	$million
31 December 2023		(10.2)
Revenue	8.6
VAT refund	1.3
Interest income	0.2
Operating costs	(9.6)
Capital expenditure	(0.7)
Debt servicing	(0.5)
Outflow in Q1 2024		(0.7)
31 March 2024		(10.9)

 

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