Revenue and Production Guidance for Full Year 2020

RNS Number : 6778F

Anglo Asian Mining PLC

11 March 2020

 

11 March 2020

Anglo Asian Mining plc

Revenue and Production Guidance for Full Year 2020

Full Year 2020 Revenue will Significantly Increase to Over $100 million at Current Metal Prices

Production of 75,000 to 80,000 Gold Equivalent Ounces

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to announce its revenue and production guidance for the year ended 31 December 2020 ("FY 2020").

Note that all references to "$" are to the United States Dollar.

Overview

· FY 2020 Revenue will significantly increase to over $100 million at current metal prices

· Forecast metal production for FY 2020 between 75,000 to 80,000 gold equivalent ounces ("GEOs") compared to FY 2019 production of 81,399 GEOs

· Forecast production for FY 2020 between 65,000 to 67,000 ounces of gold (FY 2019: 70,098 ounces of gold produced) and between 2,200 to 2,400 tonnes of copper (FY 2019: 2,210 tonnes of copper produced)

· Lower gold production forecast due to a higher proportion of Gedabek open pit ore processed by agitation leaching and reduced mining from Ugur - open pit ore has lower gold grades and requires longer processing

· GEOs production will be reported in future using both budget and actual rates to aid comparison

Anglo Asian CEO Reza Vaziri commented , "Once again, 2020 is set to be another year of solid performance from Anglo Asian Mining with forecast revenue of over 100 million dollars and production between 75,000 to 80,000 gold equivalent ounces. Despite the marginal reduction on the previous year's production, due to lower production from the Ugur mine, the increased metal prices seen so far this year should enable the Company to maintain its financial performance as we progress into exploiting our recently reported new mineral deposits.

"Future growth in both production and our resources and reserves continue to be highly important to Anglo Asian. We are continuing at pace with our exploration programme to identify possible further production expansion in our three existing contract areas. In this respect, we recently released the highly encouraging results from our exploration programme which highlights their potential. We also continue to look at other opportunities for expansion. I look forward to keeping the market informed of future developments."

Assumptions

The production guidance has been calculated using the following metal prices used for the 2020 budget:

-  Gold: $1,480 per ounce

-  Silver: $17 per ounce

-  Copper: $5,700 per tonne 

The production guidance is for 100 per cent. of the Company's production which will be subject to an expected 12.75 per cent. production share throughout 2020 with the Government of Azerbaijan under the Company's existing production sharing agreement.

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 until the release of this announcement.

**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]
Stephen Westhead	Anglo Asian Mining plc	Tel: [phone]
Ewan Leggat	SP Angel Corporate Finance LLP Nominated Adviser and Broker	Tel: [phone]
Soltan Tagiev	SP Angel Corporate Finance LLP Nominated Adviser and Broker	Tel + 44 (0) 20 3470 0470
Camilla Horsfall	Blytheweigh Financial	Tel: + 44(0) 20 7138 3224
Megan Ray	Blytheweigh Financial	Tel: + 44(0) 20 7138 3224

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's main operating location is the Gedabek contract area ("Gedabek") which is a 300 square kilometre area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009.  Mining at Gedabek was initially from its main open pit which is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site. In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. 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.

The Company produced 81,399 gold equivalent ounces ("GEOs") for the year ended 31 December 2019. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies.  The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation 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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