Anglo Asian Mining Experiences Production Decline Pending Regulatory Approval
Anglo Asian Mining reported a significant reduction in its production for the first quarter of the year as it awaits government approval in Azerbaijan to raise the wall of its tailings dam. The copper, gold, and silver producer saw its production drop to 2,548 gold equivalent ounces from 10,969 ounces in the same period last year.
During this quarter, copper production decreased sharply to 54 tonnes from the previous year's 847 tonnes. Gold output also fell to 2,252 ounces from 6,741 ounces, and silver production decreased to 6,410 ounces from 22,566 ounces. The company attributed this decline to the partial shutdown of operations as it waits for the necessary governmental permissions to proceed with essential enhancements to its tailings dam.
Despite the production challenges, the company managed to sell 3,925 ounces of gold bullion at an average price of USD 2,080 per ounce, compared to 5,719 ounces at an average of USD 1,895 per ounce in the prior year's first quarter.
Chief Executive Officer Reza Vaziri commented on the situation, noting the operational hurdles but also highlighting the ongoing progress in the company's development assets. Vaziri expressed optimism that the permit for the tailings dam modification would be granted soon, which would allow the company to resume normal production levels and capitalize on the currently strong metal prices.
Shares of Anglo Asian Mining were observed trading down 0.8% at 63.00 pence each in London on Wednesday afternoon. The company remains hopeful for a prompt resolution to its regulatory challenges to restore and potentially increase production capacities.
