REG - Anglo Asian Mining - Q2 & H1 2023 Production and Operations Review

Anglo Asian MiningAnnouncement

13/07/2023 07:00

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RNS Number : 8529F  Anglo Asian Mining PLC  13 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)  Tel: +44 (0) 20 3470 0470

 Ewan Leggat

 Adam Cowl

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

 Charlie Jack

 Harry Griffiths

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/ (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

 ·         Cash of $9.4 million ($10.7 million at 31 March 2023)
 ·         Unsold gold doré and 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             3 months to             3 months to

                 31 December 2022        31 March 2023           30 June 2023
 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       1,705,337   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  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 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*  Silver      Gold sales**  Gold Sales price

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

                                    (ounces)
 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        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
 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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