Anglo Asian Mining plc ('Anglo Asian' or the 'Company'), the AIM listed gold, copper and silver producer focused on Azerbaijan, is pleased to provide a production, sales and operations review for its Gedabek gold, copper and silver mining and production contract area ('Gedabek') in western Azerbaijan for the three months to 31 December 2019 ('Q4 2019') and the year ended 31 December 2019 ('FY 2019').
Note that all references to '$' are to United States dollars.
Overview
Record revenues anticipated for FY 2019 in excess of $90.0 million driven by sustained gold and increased copper production and strong commodity prices
Strong cash generation of $31.3 million before payment of corporation taxes and dividends driven by strong sales and continued operational efficiencies as one of the lowest cash cost gold producers
Net cash increased to $21.1 million at the end of December 2019 from $6.1 million at the beginning of the year
Company will make its final debt repayment in early February 2020 delivering on its strategic plan to be debt free
82,795 gold equivalent ounces ('GEOs') produced during FY 2019 calculated using budgeted metal prices
Reportable GEOs marginally lower at 81,399 due to the increase in the market price of gold relative to the market price of copper during the year
Anglo Asian CEO Reza Vaziri commented: 'We have had another strong year, delivering production in line with expectations and also making good progress with our exploration programme. We report our production in gold equivalent ounces which have reduced due to the increase in the market price of gold relative to the market price of copper during the year. Our production calculated as gold equivalent ounces using our budgeted metal prices was 82,795 ounces and within our original production forecast.
'The Company's financial performance continues to be exceptional. We have increased net cash in 2019 by $15.1 million, notwithstanding paying dividends of $8.7 million and corporation taxes of $7.5 million in the year. The Company will achieve the significant milestone of becoming debt free early next month when the final installment of the refinancing loan is repaid. This strong cash generation will allow the Company to continue to enhance our announced dividend policy.
'The Company is in a strong operational position and robust financial health as we move into 2020. I look forward to updating you on the progress of our exploration programme which we anticipate releasing within quarter one and other activities which the Company will be carrying out during the rest of the year.'
Contact:
Reza Vaziri
Tel: +994 12 596 3350
Notes
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 has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.
The Company's main operating location is the Gedabek contract area ('Gedabek') which is a 300 square kilometer area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009. Mining at Gedabek was initially from its main open pit which is an open cast mine with a series of interconnected pits. The Company also operates the high grade Gadir underground mine which is co-located at the Gedabek site, In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.
The Company produced 83,736 gold equivalent ounces ('GEOs') for the year ended 31 December 2018. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies. The Company produces gold dore through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant.
Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.
ANGLO ASIAN MINING PLC 
