REG - Anglo Asian Mining - Q3 2024 Production and Operations Review
10/10/2024 07:00
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RNS Number : 6132H Anglo Asian Mining PLC 10 October 2024
10 October 2024
Anglo Asian Mining plc
Q3 2024 Production and Operations Review
Full year production guidance of 15,000 to 19,500 gold equivalent ounces
maintained
Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold,
copper and silver producer focused in Azerbaijan, provides the following
production, sales and operational review for the three months to 30 September
2024 ("Q3 2024"or the "Quarter") and nine months to 30 September 2024 ("9M
2024").
Operational highlights
· Authorisation to raise the Group's tailing dam wall received on 5
August 2024
o First lift of 2.5 metres on track to be completed in November 2024
· Production restarted from its agitation leaching plant in September
2024
o 1,369 ounces of gold produced in September 2024 (August 2024: 824 ounces)
· Maiden JORC Mineral resources estimate for the Garadag deposit
published on 24 September 2024 confirming approximately 900,000 tonnes of
copper metal hosted in 285 million tonnes of mineralisation with average
grades of 0.32 per cent. copper
o Garadag is a considerable asset in delivering the growth strategy of
transitioning to a mid-tier producer in the medium term
Q3 and 9M 2024 Production update
· Total Q3 2024 production of 3,040 gold equivalent ounces ("GEOs") (Q3
2023: 5,295 GEOs)
o Copper production of 11 tonnes (Q3 2023: 250 tonnes)
o Gold production of 2,956 ounces (Q3 2023: 4,156 ounces)
o Silver production of 3,315 ounces (Q3 2023: 5,656 ounces)
· Total 9M 2024 production of 8,310 GEOs (9M 2023: 28,686 GEOs)
o Copper production of 111 tonnes (9M 2023: 2,120 tonnes)
o Gold production of 7,660 ounces (9M 2023: 18,779 ounces)
o Silver production of 16,061 ounces (9M 2023: 50,352 ounces)
Q3 2024 Sales and cash update
· Total gold bullion sales of 3,220 ounces at an average price of
$2,497 per ounce (Q3 2023: 2,900 ounces at an average price of $1,949 per
ounce)
· $3.7 million proceeds of Caterpillar financing received in the
Quarter
· Net debt position of $14.0 million at 30 September 2024 (30 June
2024: $12.0 million) as a result of the partially suspended production during
the year
· Inventory valued at $2.7 million at 30 September 2024 (30 June 2024:
$3.6 million)
The Company maintains its full year 2024 ("FY 2024") production guidance of
15,000 to 19,500 GEOs.
Having restarted regular production from its agitation leaching plant in
September 2024, the Group remains on schedule to restart its flotation
processing in November 2024 with first production from the Gilar mine in
December 2024.
Anglo Asian CEO Reza Vaziri commented:
"This quarter has been a turning point for the Company as we move towards
fully restarting production after a year of partial shutdown. Our agitation
leaching production restarted in September, with only minor snagging, and the
effect on our production was felt immediately. Despite only limited agitation
leaching production in September, our doré production increased in the month
to 1,369 ounces from 824 ounces in August.
"The restart of agitation leaching production has generated considerable
momentum for the Company. Adding to this momentum is the opening of the
flotation plant in November and mining the first ore from Gilar, which remains
on track to commence in December. We are also benefiting from the recent
increases in the gold price. I look forward to updating everybody on our
progress in the months ahead."
Note that all references to "$" are to United States dollars.
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 31,821 gold equivalent ounces ("GEOs") for the year
ended 31 December 2023.
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 which time 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 the period 2024 to 2028 at Zafar, Gilar,
Xarxar and Garadag.
https://www.angloasianmining.com/ (https://www.angloasianmining.com/)
Q3 2024 Production overview
· Gold production of 2,956 ounces (Q3 2023: 4,156 ounces):
o 2,955 ounces contained within gold doré
§ 2,349 ounces from heap leaching
§ 606 ounces from agitation leaching
o 1 ounce from sulphidisation, acidification, recycling and thickening
("SART") processing
· Copper production of 11 tonnes from SART processing (Q3 2023: SART
processing 43 tonnes and flotation 207 tonnes)
· Silver production totalled 3,315 ounces (Q3 2023: 5,656 ounces):
o 1,979 ounces contained within gold doré
§ 415 ounces from agitation leaching
§ 1,564 ounces from heap leaching
o 1,336 ounces from SART processing
Q3 2024 Sales overview
· Total gold bullion sales of 3,220 ounces at an average price of
$2,497 per ounce (Q3 2023: 2,900 ounces at an average price of $1,949 per
ounce)
· There were no concentrate sales (Q3 2023: 2,358 dmt with a value of
$3.1 million)
Q3 2024 Financials overview
· Cash of $8.1 million ($7.9 million at 30 June 2024) including
restricted cash
· Debt of $22.1 million ($19.9 million at 30 June 2024)
· Net debt of $14.0 million ($12.0 million at 30 June 2024)
· Unsold gold doré and copper concentrate inventory of $2.7 million at
30 September 2024
The Company mined the following ore during FY 2023 and the nine months to 30
September 2024:
12 months to 6 months to 3 months to
31 December 2023 30 June 2024 30 September 2024
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 1,180,695 0.38 287,321 0.78 12,803 0.33
Gadir - u/g 109,320 1.64 94,290 1.78 31,019 1.03
Gedabek - u/g - - - - - -
Total 1,290,015 0.49 381,611 1.03 43,822 0.83
The Company processed the following amounts and grades of ore by leaching for
FY 2023 and the nine months to 30 September 2024:
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 2023 94,518 196,595 62,006 0.74 0.49 1.30
30 June 2023 56,522 202,788 105,213 0.75 0.46 1.40
30 September 2023 25,690 34,621 - 0.83 0.45 -
31 December 2023 - - - - - -
FY 2023 176,730 434,004 167,219 0.76 0.48 1.40
31 March 2024 120,528 - - 0.68 - -
30 June 2024 110,225 9,698 - 0.59 0.52 -
H1 2024 230,753 9,698 - 0.66 0.52 -
30 September 2024 110,152 - 18,009 0.65 - 2.03
* includes previously heap leached ore.
The Company processed the following amounts of ore and contained metal by
flotation for FY 2023 and the nine months ended 30 September 2024:
Quarter ended Ore processed Gold content Silver content Copper content
(tonnes) (ounces) (ounces) (tonnes)
31 March 2023 192,516 1,487 19,787 1,133
30 June 2023 190,593 1,033 10,380 1,191
30 September 2023 62,369 478 4,358 363
31 December 2023 - - - -
FY 2023 445,478 2,998 34,525 2,687
31 March 2024 - - - -
30 June 2024 - - - -
H1 2024 - - - -
30 September 2024 - - - -
The following table summarises gold doré production and sales at Gedabek for
FY 2023 and the nine months 30 September 2024:
Quarter ended Gold produced* Silver Gold sales** Gold Sales price
produced*
(ounces) (ounces) (ounces) ($/ounce)
31 March 2023 5,965 2,841 5,719 1,895
30 June 2023 7,375 3,593 4,787 1,992
30 September 2023 4,001 1,488 2,900 1,949
31 December 2023 2,975 1,610 2,416 2,004
FY 2023 20,316 9,532 15,822 1,951
31 March 2024 2,259 1,512 3,925 2,080
30 June 2024 2,433 1,532 2,075 2,350
H1 2024 4,692 3,044 6,000 2,174
30 September 2024 2,955 1,979 3,220 2,497
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 2023
and the nine months ended 30 September 2024 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 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
30 Sept 2023 - 4,001 4,001 - 1,488 1,488
31 Dec 2023 - 2,975 2,975 - 1,610 1,610
FY 2023 5,568 14,748 20,316 2,812 6,720 9,532
31 March 2024 - 2,259 2,259 - 1,512 1,512
30 June 2024 - 2,433 2,433 - 1,532 1,532
H1 2024 - 4,692 4,692 - 3,044 3,044
30 Sept 2024 606 2,349 2,955 415 1,564 1,979
The following table summarises copper concentrate production from both the
Company's SART and flotation plants at Gedabek for FY 2023 and the nine months
ended 30 September 2024:
Concentrate Copper Gold Silver
production* content* content* content*
(dmt) (tonnes) (ounces) (ounces)
2023
Quarter ended 31 March
SART processing 364 191 26 8,750
Flotation 4,544 665 762 11,095
Total 4,908 856 788 19,845
Quarter ended 30 June
SART processing 272 145 16 10,316
Flotation 5,613 869 479 8,101
Total 5,885 1,014 495 18,417
Quarter ended 30 September
SART processing 85 43 4 2,194
Flotation 1,316 207 151 1,974
Total 1,401 250 155 4,168
Quarter ended 31 December
SART processing 29 18 4 1,264
Flotation - - - -
Total 29 18 4 1,264
2024
Quarter ended 31 March
SART processing 89 54 7 4,893
Flotation - - - -
Total 89 54 7 4,893
Quarter ended 30 June
SART processing 77 46 5 4,809
Flotation - - - -
Total 77 46 5 4,809
Quarter ended 30 September
SART processing 19 11 1 1,336
Flotation - - - -
Total 19 11 1 1,336
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 2023 and nine months to 30 September 2024. 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 2023 4,908 856 788 19,845 1,147 2,743
30 June 2023 5,885 1,014 495 18,417 5,501 7,678
30 September 2023 1,401 250 155 4,168 2,358 3,066
31 December 2023 29 18 4 1,264 2,186 2,306
FY 2023 12,223 2,138 1,442 43,694 11,192 15,793
31 March 2024 89 54 7 4,893 71 295
30 June 2024 77 46 5 4,809 260 1,002
H1 2024 166 100 12 9,702 331 1,297
30 September 2024 19 11 1 1,336 - -
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
9M 2024 Financial review
The Company's net debt increased from $10.2 million at 1 January 2024 to $14.0
million at 30 September 2024 as follows:
H1 2024 Q3 2024
$m $m $m $m
1 Jan / 1 July 2024 (10.2) (12.0)
Revenue 14.6 8.1
VAT refund 1.9 0.4
Interest income 0.2 -
Operating costs (19.2) (9.6)
Capital expenditure (1.5) (0.6)
Debt servicing (0.8) (0.3)
Trafigura advance 3.0 -
Outflow in the period (1.8) (2.0)
30 June / 30 Sept 2024 (12.0) (14.0)
Note the $3.0 million advance from Trafigura has been treated as a prepayment
and not included in net debt.
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