Anglo Asian Mining’s 2023 Performance: Steady Production Amid Operational Challenges

Anglo Asian Mining’s 2023 Performance: Steady Production Amid Operational Challenges

Overview of Anglo Asian Mining’s 2023 Activities

Anglo Asian Mining, an AIM-listed company primarily operating in Azerbaijan, has reported its production and operational review for both the fourth quarter of 2023 (Q4 2023) and the full year (FY 2023). The company, known for producing gold, copper, and silver, faced a challenging year with significant operational interruptions.

The total production for FY 2023 stood at 31,821 gold equivalent ounces (GEOs), aligning with the mid-range of the revised guidance set between 30,000 to 34,000 GEOs. This marks a decrease from the 57,618 GEOs achieved in FY 2022. In Q4 2023 alone, the production was 3,080 GEOs, a substantial drop from the 14,532 GEOs in Q4 2022.

A key factor affecting production was the partial suspension of operations during the year. This suspension was due to the completion of an environmental audit, which led to a temporary shutdown in the third quarter of 2023. A protocol with the Azerbaijani Government allowed operations to restart at the Gedabek open pit in December 2023. Full operations, including flotation production, are expected to ramp up in the second quarter of 2024.

Despite these challenges, Anglo Asian Mining continued to produce gold doré and copper concentrate from heap leaching and SART processing throughout Q4 2023. Additionally, the company has made significant progress in developing the new Gilar mine, with a maiden JORC mineral resource indicating substantial quantities of copper, gold, and zinc.

As of 31 December 2023, Anglo Asian Mining reported a net debt of $10.3 million, a shift from the net cash position of $1.6 million recorded on 30 September 2023. This change is partly due to a $4.7 million payment to Caterpillar for underground mining fleet and equipment. The company is negotiating to refinance $3.7 million of this purchase with vendor financing. As of the end of 2023, gross cash stood at $10.3 million, with various loans drawn down from the International Bank of Azerbaijan and Access Bank.

At the close of 2023, the company held an inventory valued at $7.1 million, including gold and silver bullion and copper concentrate. In the fourth quarter, 1,000 ounces of gold bullion were sold under the gold hedging program at an average price of $2,001 per ounce, generating an additional sales revenue of $44,000. Total gold bullion sales in Q4 2023 amounted to 2,416 ounces at an average price of $2,004 per ounce. icon

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