Since pouring first gold at its flagship Gedabek mine in Azerbaijan in May 2009, AIM listed Anglo Asian Mining Plc (LON:AAZ) has been gradually ramping up production and is on course to hit its target of 53,500 ounces in 2010. With an imminent new mining study promising to increase the Gedabek mine’s resource ounces by at least 50%, the company is looking at bolstering the life of the mine and making further production efficiencies.
Anglo Asian shares a focus on exploring the Caucasus for mineral wealth with companies such as Frontier Mining (LON:FML) and Zincox Resources Plc (LON:ZOX) in Kazakhstan and Kryso Resources (LON:KYS) in Tajikistan. Its portfolio of production and exploration assets in Azerbaijan includes a 1,962 sq km prospective exploration portfolio, assembled on the back of analysis of historic Soviet geological data and held under a production sharing agreement with the country’s government. With production now underway at Gedabek, the company is planning to use its new cash flow to take a closer look at licences at Gosha and Ordubad.
Stockopedia spoke to Anglo Asian Mining’s chief financial officer, Andrew Herbert about the company’s plans to increase production from the Gedabek mine and its strategy for further exploration.
Andrew, you joined Anglo Asian Mining two years ago as the company was heading towards first production. What is your background and why were you tempted to join the company?
I started with the company in July 2008 and I came on board just after the company started constructing the mine at Gedabek. Prior to that I spent almost three years at another gold producer based in Mali in West Africa and prior to that I had various financial jobs, often with overseas developing and start-up companies in emerging economies. I had just come from another gold miner and I saw another opportunity and it seemed to be a good time to come in. They had started building a mine and it looked like it had good potential. From a finance point of view it is interesting to come in to a company that had not yet gone in to production, with the challenge of keeping the cashflow managed properly during that process.
Clearly, you have had a lot of support from the Azerbaijan government as well as funding support…
