RNS Number : 8529FAnglo Asian Mining PLC13 July 2023

13 July 2023

Anglo Asian Mining plc

Q2 & H1 2023 Production and Operations Review

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, is pleased to provide a production, sales and operational review for the three months to 30 June 2023 ("Q2 2023") and six months to 30 June 2023 ("H1 2023").

Operational highlights

·   

The Company announced its strategic growth plan, that outlined its 4 year transition to mid-tier production status with copper as its principal product

·   

The Company retains its  production target of 50,000 to 54,000 gold equivalent ounces for 2023 and continues to successfully execute its growth strategy 

H1 2023 and Q2 2023 Production update

·   

Total production of 23,391 gold equivalent ounces ("GEOs") in H1 2023 (H1 2022: 28,722 GEOs) and 12,422 GEOs in Q2 2023 calculated using actual metal prices

·   

Copper production increased to 1,860 tonnes in H1 2023 (H1 2022: 1,283 tonnes) and rose by 42 per cent. year-on-year in Q2 2023 to 1,013 tonnes (Q2 2022: 715 tonnes) as part of the Company's growth strategy to increase its copper production

o Ore processed by the expanded flotation plant in Q2 2023 increased to 190,593 tonnes (Q2 2022: 114,099 tonnes)

·   

Gold production of 14,608 ounces during H1 2023 (H1 2022: 20,906 ounces) and 7,867 ounces in Q2 2023 (Q2 2022: 10,866 ounces) due to decreasing grades at Gedabek

o Agitation leaching plant idle from 2 May to 30 May as ore now processed on a campaign basis

·   

Silver production totalled 44,576 ounces in H1 2023 (H1 2022: 99,548 ounces) and 22,010 ounces in Q2 2023 (Q2 2022: 48,874 ounces)

Q2 2023 Sales and cash update

·   

Cash of $9.4 million at 30 June 2023 (31 March 2023: $10.7 million), with inventory valued at $8.9 millionconsisting of 2,366 ounces of gold valued at $4.5 million and copper concentrate valued at $4.4 million

·   

The Company completed the sale of 1,000 ounces of gold bullion on 30 June 2023 at $1,947.5 per ounce under the Company's hedging programme, compared to the LBMA PM price of $1,912.25 generating additional revenue of $35,250

Reza Vaziri, President and Chief Executive Officer of Anglo Asian, commented:

"During the first half of this year, we were delighted to announce our strategic growth plan, which will see Anglo Asian reach its operational potential in becoming a producer of circa 36,000 tonnes of copper equivalent by 2028. This is underpinned by the three new contract areas acquired during 2022 and our enhanced strategic focus on copper. The execution of this plan is progressing well, with a number of our assets achieving developmental milestones during the first half of 2023. In particular, Gilar is still on track to begin production in the fourth quarter of the year."

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: +994 12 596 3350

Bill Morgan, Chief Financial Officer

Tel: +994 502 910 400

Stephen Westhead, Vice President

Tel: +994 502 916 894

SP Angel Corporate Finance LLP(Nominated Adviser and Broker)

Ewan Leggat

Adam Cowl

Tel: +44 (0) 20 3470 0470

Hudson Sandler(Financial PR)

Charlie Jack

Harry Griffiths

Tel: +44 (0) 20 7796 4133 

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 57,618 gold equivalent ounces ("GEOs") for the year ended 31 December 2022. 

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 2028, 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 2023 to 2028 at Zafar, Gilar, Xarxar and Garadag. 

The Company owns approximately 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources. 

https://www.angloasianmining.com/

Q2 2023 Production overview

·   

Gold production of 7,867 ounces (Q2 2022: 10,866 ounces):

o 7,375 ounces contained within gold doré

o 16 ounces from sulphidisation, acidification, recycling and thickening ("SART") processing

o 476 ounces from flotation

·   

Copper production of 1,013 tonnes (Q2 2022: 715 tonnes):

o 146 tonnes from SART processing

o 867 tonnes from flotation processing e

·   

Silver production totalled 22,010 ounces (Q2 2022: 48,874 ounces):

o 3,593 ounces contained within gold doré

o 10,348 ounces from SART processing

o 8,069 ounces from flotation

Q2 2023 Sales overview

·   

Total gold bullion sales of 4,787 ounces at an average of $1,992 per ounce (Q2 2022: 3,754 ounces at an average of $1,895 per ounce)

·   

The 4,787 ounces of gold sold include 1,000 ounces sold on 30 June 2023 under the Company's hedge programme for $1,947.50 per ounce when the LBMA PM gold price was $1,912.25

·   

Total concentrate sales of 5,501 dry metric tonnes ("dmt") with a value of $7.7 million (Q2 2022: 4,642 dmt with a value of $8.1 million)

Q2 2023 Financial overview

·   

Cashof $9.4 million ($10.7million at 31 March 2023)

·   

Unsold gold doréand copper concentrate inventory of $8.9 million

Q1 2023 Operations review

The Company mined the following ore during FY 2022 and the six months to 30 June 2023:

12 months to

 31 December 2022

3 months to

31 March 2023

3 months to

30 June 2023

Mine

Ore mined

Average

gold grade

Ore mined

Average

gold grade

Ore mined

Average

gold grade

(tonnes)

(g/t)

(tonnes)

(g/t)

(tonnes)

(g/t)

Open pit

1,705,337

0.47

415,365

0.43

591,118

0.30

Gadir - u/g

136,715

1.41

38,867

1.64

46,334

1.54

Gedabek - u/g

373,915

1.30

-

-

-

-

Total

2,215,967

0.67

454,232

0.53

637,452

0.39

The Company processed the following amounts and grades of ore by leaching for FY 2022 and the six months to 30 June 2023:

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 2022

115,173

273,577

144,275

0.75

0.48

1.63

30 June 2022

82,814

 299,762

162,239

0.78

0.53

1.40

30 September 2022

92,398

302,714

162,669

0.81

0.57

1.42

31 December 2022

24,606

213,120

156,285

0.72

0.56

1.42

FY 2022

314,991

1,089,173

625,468

0.77

0.56

1.43

31 March 2023

94,518

196,595

62,006

0.74

0.49

1.3

30 June 2023

56,522

203,016

105,213

0.75

0.46

1.4

H1 2023

151,040

399,611

167,219

0.75

0.49

1.4

* includes previously heap leached ore.

The Company processed the following amounts of ore and contained metal by flotation for FY 2022 and the six months ended 30 June 2023:

Quarter ended

Ore processed

Gold content

Silver content

Copper content

(tonnes)

(ounces)

(ounces)

(tonnes)

31 March 2022

104,475

1,921

33,522

577

30 June 2022

114,099

1,293

24,209

745

30 September 2022

143,838

1,314

24,582

724

31 December 2022

119,819

1,389

18,003

670

FY 2022

 482,231

5,917

100,316

2,716

31 March 2023

192,516

1,487

19,787

1,133

30 June 2023

190,593

1,033

10,380

1,191

H1 2023

383,109

2,520

30,167

2,324

The following table summarises gold doré production and sales at Gedabek for FY 2022 and six months ended 30 June 2023:

Quarter ended

Gold produced*

(ounces)

Silver

produced*

(ounces)

Gold sales**

(ounces)

Gold Sales price

($/ounce)

31 March 2022

8,963

7,574

7,519

1,904

30 June 2022

10,137

7,620

3,754

1,895

30 September 2022

10,473

6,949

10,000

1,727

31 December 2022

10,437

4,820

13,645

1,727

FY 2022

40,010

26,963

34,918

1,783

31 March 2023

5,965

2,841

5,719

1,895

30 June 2023

7,375

3,593

4,787

1,992

H1 2023

13,340

6,434

10,506

1,939

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 2022 and the six months ended 30 June 2023 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 2022

5,674

3,289

8,963

4,803

2,771

7,574

30 June 2022

6,196

3,941

10,137

4,654

2,966

7,620

30 Sept 2022

5,517

4,956

10,473

3,673

3,276

6,949

31 Dec 2022

5,831

4,606

10,437

2,684

2,136

4,820

FY 2022

23,218

16,792

40,010

15,814

11,139

26,963

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

H1 2023

5,568

7,772

13,340

2,812

3,622

6,434

The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2022 and the six months ended 30 June 2023 is as follows:

Concentrate

Copper

Gold

Silver

production*

content*

content*

content*

(dmt)

(tonnes)

(ounces)

(ounces)

2022

Quarter ended 31 March

SART processing

330

188

12

25,114

Flotation

2,586

380

1,065

17,986

Total

2,916

568

1,077

43,100

Quarter ended 30 June

SART processing

316

168

14

25,582

Flotation

3,811

547

715

15,672

Total

4,127

715

729

41,254

Quarter ended 30 September

SART processing

367

208

33

24,077

Flotation

2,805

401

581

14,094

Total

3,172

609

614

38,171

Quarter ended 31 December

SART processing

438

244

39

20,833

Flotation

2,648

380

645

11,725

Total

3,086

624

684

32,558

2023

Quarter ended 31 March

SART processing

364

190

25

8,750

Flotation

4,544

657

751

10,975

Total

4,908

847

776

19,725

Quarter ended 30 June

SART processing

272

146

16

10,348

Flotation

5,613

867

476

8,069

Total

5,885

1,013

492

18,417

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 2022 and the six months ended 30 June 2023. 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 2022

2,916

568

1,077

43,100

1,477

3,248

30 June 2022

4,127

715

729

41,254

4,642

8,127

30 September 2022

3,172

609

614

38,171

1,718

3,378

31 December 2022

3,086

624

684

32,558

4,606

7,487

FY 2022

13,301

2,516

3,104

155,083

12,443

22,240

31 March 2023

4,908

847

776

19,725

1,147

2,743

30 June 2023

5,885

1,013

492

18,417

5,501

7,678

H1 2023

10,793

1,860

1,268

38,142

6,648

10,421

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

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