REG - Anglo Asian Mining - Q2 & H1 2022 Production and Operations review

Anglo Asian MiningAnnouncement

14/07/2022 07:00

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RNS Number : 4124S  Anglo Asian Mining PLC  14 July 2022

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

 

14 July 2022

 

 

Anglo Asian Mining plc

Q2 & H1 2022 Production and Operations review

Production of 15,052 gold equivalent ounces in Q2 2022

Parliamentary ratification granted for three new Contract Areas

 

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 operations review for the three months to 30 June 2022
("Q2 2022") and six months to 30 June 2022 ("H1 2022").

 

Note that all references to "$" are to United States dollars.

 

Operational update

·    On 5 July 2022, amendments to the Company's Production Sharing
Agreement were signed into law granting the Company three new Contract Areas
as announced on 29 September 2021

o Xarxar, Garadagh and Demirli, the three new Contract Areas, cover a combined
area of 882 square kilometres

Q2 2022 Production update

·    Gold production totalled 10,866 ounces (Q2 2021: 12,340 ounces)

·    Copper production totalled 715 tonnes (Q2 2021: 695 tonnes)

·    Silver production totalled 48,810 ounces (Q2 2021: 43,565 ounces)

·    Total production of 15,052 GEOs (Q2 2021: 16,740 GEOs)

 

H1 2022 Production update

·    Gold production totalled 20,906 ounces (H1 2021: 24,247 ounces)

·    Copper production totalled 1,283 tonnes (H1 2021: 1,333 tonnes)

·    Silver production totalled 99,499 ounces (H1 2021: 78,980 ounces)

·    Total production of 28,772 GEOs (H1 2021: 32,171 GEOs)

Q2 2022 sales and cash update

·    Cash of $21.1 million at 30 June 2022 (31 March 2022: $29.4
million)

·    Inventory valued at $15.6 million as at 30 June 2022 (7,000
ounces of gold valued at $12.7 million and copper concentrate valued
at $2.9 million)

 

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

 

"We are delighted to have received Parliamentary Ratification for the new
contract areas in early July, allowing our team access to the Garadagh and
Xarxar sites. We are now working on our three-year production plan and to
summarise our resources. The three new contract areas transform our asset
base, and we are excited to begin our transition into a copper focused miner.

 

"We are also pleased to have reported solid rates of production during quarter
two and the first half of 2022, with quarter two being slightly above quarter
one and both generally being consistent with last year. This is despite lower
grades at Gedabek due to the resource nearing the end of its life.

 

"The Company remains focused on developing Vejnaly and the Hasan vein at
Gosha, both of which we anticipate entering production in H2 2022, as well as
bringing the major new mine at Zafer into production in 2023."

 

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:

 Reza Vaziri       Anglo Asian Mining plc          Tel: +994 12 596 3350
 Bill Morgan       Anglo Asian Mining plc          Tel: +994 502 910 400
 Stephen Westhead  Anglo Asian Mining plc          Tel: +994 502 916 894
 Ewan Leggat       SP Angel Corporate Finance LLP  Tel: +44 (0) 20 3470 0470

                   Nominated Adviser and Broker
 Adam Cowl         SP Angel Corporate Finance LLP  Tel + 44 (0) 20 3470 0470

                   Nominated Adviser and Broker
 Charlie Jack      Hudson Sandler                  Tel: +44(0) 20 7796 4133

 Harry Griffiths   Hudson Sandler                  Tel: +44(0) 20 7796 4133

 

Notes to editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer
in Central Asia with a broad portfolio of production and exploration assets
in Azerbaijan. The Company produced 64,610 gold equivalent ounces ("GEOs")
for the year ended 31 December 2021.

 

In December 2021, the Company undertook a private placement which acquired
19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). The
transaction was completed in January 2022. 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.

 

On 5 July 2022, the Government of Azerbaijan ratified amendments to its
Production Sharing Agreement, granting Anglo Asian three additional
concessions totalling a combined area of 882 square kilometres. This includes
the Garadagh porphyry copper deposit, with a Soviet classified resource of
over 300,000 tonnes of copper. The acquisition of these concessions is
transformational to Anglo Asian's asset portfolio and underpins the strategic
target of transitioning into a mid-tier copper focused miner.

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

 

 

Appendix

 

Q2 2022 Production Overview

·    Total production of 15,052 GEOs (Q2 2021: 16,740 GEOs)

·    Gold production totalled 10,866 ounces (Q2 2021: 12,340 ounces):

o 10,137 ounces contained within gold doré

o 14 ounces from SART processing

o 715 ounces from flotation

·    Copper production totalled 715 tonnes (Q2 2021: 695 tonnes):

o 168 tonnes from SART processing

o 547 tonnes from flotation processing

·    Silver production totalled 48,810 ounces (Q2 2021: 43,565 ounces):

o 7,620 ounces contained within gold doré

o 25,548 ounces from SART processing

o 15,642 ounces from flotation

 

H1 2022 Production Overview

·    Total production of 28,772 GEOs (H1 2021: 32,171 GEOs)

·    Gold production totalled 20,906 ounces (H1 2021: 24,247 ounces):

o 19,100 ounces contained within gold doré

o 26 ounces from SART processing

o 1,780 ounces from flotation

·    Copper production totalled 1,283 tonnes (H1 2021: 1,333 tonnes):

o 356 tonnes from SART processing

o 927 tonnes from flotation processing

·    Silver production totalled 99,499 ounces (H1 2021: 78,980 ounces):

o 15,194 ounces contained within gold doré

o 50,656 ounces from SART processing

o 33,649 ounces from flotation

 

Operations Review

The Company mined the following ore in the six months ended 30 June 2022:

 

                12 months to             3 months to             3 months to

                 31 December 2021        31 March 2022           30 June 2022
 Mine           Ore mined   Average      Ore mined  Average      Ore mined  Average

                            gold grade              gold grade              gold grade
                (tonnes)    (g/t)        (tonnes)   (g/t)        (tonnes)   (g/t)
 Open pit       1,815,857   0.74         469,500    0.52         441,041    0.47
 Gadir - u/g    115,943     1.91         30,712     1.44         36,295     1.43
 Gedabek - u/g  248,792     1.42         77,937     1.60         111,827    1.25
 Total          2,180,592   0.80         578,149    0.71         589,163    0.68

 

The Company processed the following amounts and grades of ore by leaching for
FY 2021 and H1 2022:

 

 Quarter ended      Ore processed                                                       Gold grade of ore processed
                    Heap leach pad crushed ore  Heap leach pad ROM  Agitation leaching  Heap leach pad crushed ore  Heap leach pad ROM  Agitation leaching

                    (tonnes)                    ore                 plant*              (g/t)                       ore                 plant*

                                                (tonnes)            (tonnes)                                        (g/t)               (g/t)
 31 March 2021      110,612                     258,097             154,373             0.90                        0.61                1.92
 30 June 2021       154,619                     177,369             164,288             0.81                        0.59                1.64
 30 September 2021  154,112                     194,816             171,029             0.79                        0.51                1.65
 31 December 2021   113,623                     309,374             151,701             0.68                        0.49                1.53
 FY 2021            532,966                     939,656             641,391             0.80                        0.54                1.68
 31 March 2022      115,173                     273,577             144,275             0.75                        0.48                1.63
 30 June 2022       82,814                       299,168            162,239             0.78                        0.53                1.4
 H1 2022            197,987                     572,745             306,514             0.76                        0.51                1.48

 

* includes previously heap leached ore.

 

The Company processed the following amounts of ore and contained metal by
flotation for FY 2021 and H1 2022:

 

 Quarter ended      Ore processed  Gold content  Silver content  Copper content
                    (tonnes)       (ounces)      (ounces)        (tonnes)
 31 March 2021      111,060        920           15,782          652
 30 June 2021       116,910        1,251         23,870          596
 30 September 2021  121,283        1,231         19,939          519
 31 December 2021   129,384        1,856         28,480          762
 FY 2021            478,637        5,258         88,071          2,529
 31 March 2022      104,475        1,921         33,522          577
 30 June 2022       114,099        1,293         24,209          745
 H1 2022            218,574        3,214         57,731          1,322

 

 

The following table summarises gold doré production and sales at Gedabek for
FY 2021 and H1 2022:

 

 Quarter ended  Gold produced*       Silver          Gold sales**      Gold Sales price

                (ounces)             produced*       (ounces)          ($/ounce)

                                     (ounces)

 31 March 2021  11,541               4,916           5,635             1,697
 30 June 2021   11,789               5,921           13,947            1,808
 H1 2021        23,330               10,837          19,582            1,776
 30 Sept 2021   12,314               5,473           6,828             1,815
 31 Dec 2021    10,561               5,430           13,153            1,825
 H2 2021        22,875               10,903          19,981            1,821
 FY 2021        46,205               21,740          39,563            1,799
 31 March 2022  8,963                7,574           7,519             1,904
 30 June 2022   10,137               7,620           3,754             1,895
 H1 2022        19,100               15,194          11,273            1,901
 Note

* including Government of Azerbaijan's share

** excluding Government of Azerbaijan's share

 

Gold and silver production from agitation and heap leaching for H1 2022 is as
follows:

 

 Quarter        Gold                             Silver

 ended
                Agitation  Heap       Total      Agitation  Heap       Total

                leaching   leaching              leaching   leaching

                (ounces)   (ounces)   (ounces)   (ounces)   (ounces)   (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
 H1 2022        11,870     7,230      19,100     9,457      5,737      15,194

 

The following table summarises copper concentrate production from both the
Company's SART and flotation plants at Gedabek for FY 2021 and H1 2022:

 

                            Concentrate  Copper    Gold      Silver
                            production*  content*  content*  content*
                            (dmt)        (tonnes)  (ounces)  (ounces)
 2021
 Quarter ended 31 March
 SART processing            473          276       13        19,850
 Flotation                  2,375        362       353       10,599
 Total                      2,848        638       366       30,449

 Quarter ended 30 June
 SART processing            512          301       12        22,428
 Flotation                  2,652        394       539       15,216
 Total                      3,164        695       551       37,644

 Quarter ended 30 Sept
 SART processing            503          265       13        19,526
 Flotation                  2,600        308       517       11,913
 Total                      3,103        573       530       31,439

 Quarter ended 31 December
 SART processing            338          193       16        16,414
 Flotation                  3,584        550       1,012     16,829
 Total                      3,922        743       1,028     33,243

 2022
 Quarter ended 31 March
 SART processing            330          188       12        25,108
 Flotation                  2,586        380       1,065     18,007
 Total                      2,916        568       1,077     43,115
 Quarter ended 30 June
 SART processing            316          168       14        25,548
 Flotation                  3,811        547       715       15,642
 Total                      4,127        715       729       41,190

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 2021 and H1 2022. 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 2021  2,848        638       366       30,499    -            -
 30 June 2021   3,164        695       551       37,644    3,467        9,066
 H1 2021        6,012        1,333     917       68,143    3,467        9,066

 30 Sept 2021   3,103        573       530       31,439    3,549        5,712
 31 Dec 2021    3,922        743       1,028     33,243    4,132        8,941
 H2 2021        7,025        1,316     1,558     64,682    7,681        14,653
 FY 2021        13,037       2,649     2,475     132,825   11,148       23,719

 31 March 2022  2,916        568       1,077     43,115    1,477        3,248
 30 June 2022   4,127        715       729       41,190    4,642        8,127
 H2 2021        7,043        1,283     1,806     84,305    6,119        11,375

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

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