REG - Anglo Asian Mining - Guidance for 2025

Anglo Asian MiningAnnouncement

26/02/2025 07:00

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RNS Number : 4275Y  Anglo Asian Mining PLC  26 February 2025

26 February 2025

Anglo Asian Mining PLC

Guidance for 2025

 

Anglo Asian Mining PLC ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer primarily focused on Azerbaijan, is pleased to
announce its guidance for 2025 ("FY 2025").

 

Guidance for FY 2025(1)

 

                              Full year 2024  Full year 2025

                    Unit      Actual          Guidance(2)
 Gold production    Ounces    15,073          28,000 to 33,000
 Copper production  Tonnes    377             6,500 to 6,800
 Turnover(3)        $million  To be reported  110 to 125
 EBITDA(3)          $million  To be reported  45 to 55

 

2025 is a pivotal year for Anglo Asian as it begins to increase copper
production with the opening of its new Gilar mine, and the Company expects
that copper production in 2025 will be its highest ever. This guidance
includes a full year of production, compared with production in the previous
two years, which was restricted due to a partial shutdown. Details about the
production plan for FY 2025 are given in the appendix below.

 

The Company continues to evaluate its Demirli mining property and expects to
restart production from the plant before the end of the year. The guidance
provided excludes any production, turnover or costs in respect of Demirli, the
amount of which will depend on when production commences. The Company will
provide a further update to its FY 2025 production guidance as appropriate
later in 2025.

 

Reza Vaziri, CEO of Anglo Asian, commented:

"I am pleased to provide our 2025 production guidance of 28,000 to 33,000
ounces of gold and 6,500 to 6,800 tonnes of copper. Copper is now becoming an
increasing important part of the Group's production. Our production in 2025
will be significantly increased compared to 2024, which was impacted by our
partial shutdown. I am also pleased that the guidance for 2025 turnover is the
highest annual turnover for the Group.

 

"2025 will be a milestone year for the Company as we begin to ramp up our
proportion of copper within our production portfolio, ahead of bringing the
larger Garadag and Xarxar copper assets into production in the coming years."

 

(1) The Group will no longer report headline production guidance in gold
equivalent ounces as copper is becoming an increasingly significant part of
the Group's production. Significant movements in the ratio of the gold to the
copper price in the year can also make reported actual production misleading
compared to guidance. However, to aid comparison, the Group's forecast
production for FY 2025 calculated as gold equivalent ounces is given in the
appendix below. The guidance has been calculated using a gold price of $2,800
per ounce and copper price of $9,000 per tonne.

(2) No production or financial amounts are included in respect of the Demirli
mining property.

(3) The actual figures for 2024 will be reported in May 2025 with along with
the final results for the year ended 31 December 2024

 

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

 Kristina Gaysina

 

APPENDIX

Guidance in gold equivalent ounces ("GEOs")

 

 Metal            Unit                        Full year 2025
                  Full year 2024              Production guidance

                  Actual production
 Gold             Ounces              15,073  28,000 to 33,000
 Copper           Tonnes              377     6,500 to 6,800
 Gold and Copper  GEOs                16,760  49,000 to 55,000

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 2024   Budget 2025   31 December 2024          2025

 Gold    ounce  2,629.00           2,800.00      1.000                     1.000
 Copper  tonne  8,706.00           9,000.00      3.311                     3.215

 

Production plan for 2025

The Company's production profile will change significantly in 2025 compared to
previous years due to commencing mining at Gilar, which will increase copper
as a proportion of total production:

 

·    Production is expected to commence in Q1 2025 from the new Gilar
underground mine. Around 400,000 tonnes of ore is expected to be extracted
from Gilar in 2025 grading 1.8 per cent. copper and 1.47 grammes per tonne of
gold;

·   Ore from the Gilar mine will initially be treated by agitation
leaching to remove the gold and produce gold doré. The Gilar tailings from
agitation leaching will then be treated by flotation to produce a copper
concentrate;

·   Ore from the existing open pit and Gadir underground mine will also
supplement feedstock for the flotation plant and the agitation leaching plant
to ensure they are fully utilised in 2025; and

·   Approximately 425,000 to 475,000 tonnes of ore grading around 0.55
grammes per tonne of gold will be heap leached. All heap leached ore is
forecast to be crushed which is now more financially beneficial than heap
leaching ROM ore at the current gold price.

 

DEFINITION OF FINANCIAL METRICS

 

Turnover

Turnover is sale proceeds of the Group's share of production. The Group's
share of production is assumed to be 87.25 per cent. for 2025.

 

EBITDA

EBITDA is defined as earnings before Interest, tax, depreciation and
amortisation.

 

About Anglo Asian Mining

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 16,760 gold equivalent ounces ("GEOs") for the year
ended 31 December 2024. Production was severely restricted in 2024 due to a
partial environmental shutdown but was fully restarted by the end of the year.

 

The Company's strategic plan for growth shows a clearly defined path for the
Company to transition to a multi-asset, mid-tier, copper and gold producer by
2029, by which time copper will be the principal product of the Company, with
forecast production of around 50,000 to 55,000 copper equivalent tonnes. It
plans to achieve this growth by bringing into production four new mines during
the period 2025 to 2029 at Zafar, Gilar, Xarxar and Garadag. The first of
these new mines, Gilar will start production in early 2025. It is also
planning to bring Demirli, a brownfield copper project to which it acquired
access to 2024, into production in 2025

https://www.angloasianmining.com/ (https://www.angloasianmining.com/)

 

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