REG - Anglo Asian Mining - 2023 Production Guidance

Anglo Asian MiningAnnouncement

23/02/2023 07:00

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RNS Number : 7651Q  Anglo Asian Mining PLC  23 February 2023

23 February 2023

 

Anglo Asian Mining PLC

2023 Production Guidance

63 to 71 per cent. forecast increase in copper production

 

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer primarily focused in Azerbaijan, is pleased to
announce its production guidance for the full year 2023 ("FY 2023"). The
Company is forecasting to produce between 50,000 and 54,000 gold equivalent
ounces comprising 4,100 to 4,300 tonnes of copper and 30,000 to 32,000 ounces
of gold.

 

2023 is a pivotal year for Anglo Asian as it begins its transition to achieve
significant copper production with the opening of its new Gilar and Zafar
mines and the delivery of the increased capacity of its flotation plant.
Copper production is forecast to increase by 63 to 71 per cent. and gold
production to decrease by 26 to 30 per cent. This is in accordance with the
Company's growing focus on copper, capitalising on the global decarbonisation
agenda. More information about Anglo Asian's medium-term growth strategy and
its increasing focus on copper will be announced later this quarter.

 

FY 2023 production guidance is as follows:

 

 Metal                   Unit                        Full year 2023
                         Full year 2022              Production guidance

                         Actual production
 Gold                    Ounces              43,114  30,000 to 32,000
 Copper                  Tonnes              2,516   4,100 to 4,300
 Gold equivalent ounces  GEOs                57,618  50,000 to 54,000

Note the Company does not forecast silver production as it is not material.

 

The gold equivalent ounces have been computed using the following budget
rates:

 

                Price of metal ($)               Weight of metal equivalent to one ounce of gold

 Metal   Unit   Actual                           Actual                    Budget

                31 December 2022   Budget 2023   31 December 2022          2023

 Gold    ounce  1,797.55           1,800.00      1.000                     1.000
 Silver  ounce  23.97              20.00         0.013                     0.011
 Copper  tonne  8,387.00           8,500.00      4.666                     4.722

 

Production plan for 2023

The Company's production profile will change significantly in 2023 as copper
becomes a greater proportion of its production:

 

·    The agitation leaching plant will operate on a "campaign basis"
during the year, processing mainly gold rich ore from Gedabek open pit and
underground mines. There is a diminishing amount of ore suitable for agitation
leaching at Gedabek. Additionally, it is more commercially advantageous to use
the plant's crushing and grinding circuit to treat ore for the expanded
flotation plant.

·    As previously announced, capacity at the flotation plant will double
in 2023 as a result of investment of approximately $3 million.

·    Copper rich ore from the Gedabek open pit will be used as feedstock
for the flotation plant during 2023. From Q4 2023, Gilar ore will also be
processed and its gold content extracted by agitation leaching.

·    The Zafar mine will be constructed in 2023, but ore extraction will
not be required to maintain the operation of the flotation plant at its
maximum capacity during the year. Production in 2023 will be maximised by
processing Gilar ore which also contains gold.

·    Only a very minimal amount of ore will be processed from the Vejnaly
and Gosha mines in 2023. The recent decision to fast-track the Gilar mine into
production has required redeployment of resources away from these two
projects.

 

Outlook for 2024

The Company will start 2024 with a flotation plant with double its original
capacity and the Gilar and Zafar mines ready to provide the ore feedstock.
This will enable to Company to produce copper in 2024 at the same or greater
rate than 2023. The Company also anticipates increased gold production in 2024
in anticipation of a full year of production from Gilar. Drilling and resource
estimation for Gilar will continue during 2023, expanding upon the already
known resources recently reported.

 

Reza Vaziri, CEO of Anglo Asian, commented:

"2023 will be a critical year for Anglo Asian as we pivot the Company towards
copper. We remain focused on production in the short-term, creating value for
our shareholders, as well as finalising our medium-term growth strategy that
culminates in our transition to a mid-tier production profile. We look forward
to releasing this later this quarter."

 

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)  Tel: +44 (0) 20 3470 0470

 Ewan Leggat

 Adam Cowl

 Hudson Sandler (Financial PR)                                  Tel: +44 0) 20 7796 4133

 Charlie Jack

 Harry Griffiths

 

About Anglo Asian Mining

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in south-west Asia with a broad portfolio of production and exploration
assets in Azerbaijan. The Company produced 57,618 gold equivalent ounces
("GEOs") for the year ended 31 December 2022.

 

In December 2021, the Company undertook a private placement which acquired
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. Two further follow-on investments have been made
in Libero to maintain the Company's shareholding at 19.8 per cent.

 

On 5 July 2022, the Parliament of Azerbaijan ratified amendments to the
Company's Production Sharing Agreement, which granted it legal title to three
additional concessions with a combined area of 882 square kilometres,
including the Garadagh porphyry copper deposit, with a Soviet classified
resource of over 300,000 tonnes of copper. https://www.angloasianmining.com/
(https://www.angloasianmining.com/)

 

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