Anglo Asian Mining plc, a copper, gold, and silver producer in Azerbaijan, has announced its interim results for the six-month period ending June 30, 2023. The company's performance during this period was in line with expectations, despite the declining grades of the Gedabek open pit. Anglo Asian Mining also released its strategic plan to become a mid-tier copper-focused miner and double its production. However, the curtailment of the company's agitation leaching and flotation processing presented significant challenges in the latter half of the year.
Financially, Anglo Asian Mining reported total revenues of $30.8 million, slightly lower than the previous year's figure of $31.5 million. This was primarily due to lower gold bullion sales, partially offset by a higher average gold sales price. Profit before taxation was $1.4 million, compared to $5.7 million in the same period last year. The increase in cost of sales was attributed to the higher costs of processing lower-grade ore. The company also made further investment in Libero Copper & Gold Corporation of $0.6 million.
In terms of operational highlights, Anglo Asian Mining produced a total of 23,391 gold equivalent ounces (GEOs) during the period, compared to 28,772 GEOs in the previous year. This decrease was mainly due to lower gold grades at the Gedabek mine. Gold production was 14,608 ounces, copper production was 1,860 tonnes, and silver production was 44,576 ounces. The construction of the Gilar and Zafar mines commenced, but development was stopped between August and September. The company expects to restart development in October.
Anglo Asian Mining's production guidance for FY 2023 is between 30,000 and 34,000 gold equivalent ounces. This decrease is a result of the curtailment of agitation leaching and flotation processing since August 2023. The company expects to only carry out heap leach production between August and December 2023, assuming the restart of agitation leaching and flotation processing in the first quarter of 2024.
The curtailment of agitation leaching and flotation processing was due to an environmental inspection. The company's heap leaching operations have continued as normal, with 3,684 ounces of gold produced from July to September 2023. The development of the Gilar and Zafar mines was delayed due to suspended blasting in August and September. A health, safety, and environmental management review of tailings dam management at Gedabek is being carried out by Micon International Co Limited, and the report is currently being finalized.
Anglo Asian Mining's CEO, Reza Vaziri, commented on the results, stating that they were satisfactory given the declining gold grades at the Gedabek mine. He also mentioned the curtailment of agitation leaching and flotation processing and the company's revised production guidance. Vaziri emphasized the company's commitment to its growth strategy and its confidence in achieving mid-tier production in the medium term, despite the implementation delays caused by the curtailment of processing.