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Anglo Asian Mining Plc: THE INVESTMENT CASE

Anglo Asian Mining back in profit as copper output doubles

Production of copper doubled to 1,941 tonnes while silver production increased six-fold to 165,131 ounces.
picture of copper tubes
Copper production set to double again

Anglo Asian Mining Plc (LON:AAU) returned to profit and sharply reduced its outstanding debts on the back of higher copper production and a better gold price.

Sales of gold ounces dropped more than 16% to 53,281 ounces as Anglo ran into lower grades at its Gedabek mine in Azerbaijan, but the average gold price it received rose by US$92 per ounce.

Production of copper meanwhile doubled to 1,941 tonnes while silver production increased six-fold to 165,131 ounces.

The increase in copper and silver production, together with improved precious metal prices, boosted revenues to $79.2mln from $78.1mln.

Costs on an all in sustaining basis also fell to US$616 per ounce of gold from US$858 in 2015, which meant an operating profit of US$11.7mln compared to a loss of US$3.2mln.

Net debt reduced to US$34.6mln from US$49mln at the end of 2015.

Khosrow Zamani, chairman, said gold production would be lower again this year due to plant upgrades at Gedabek and underground development at Gadir, also in Azerbaijan.

This will be offset by increased production of copper, the production target for 2017 is  between 52,000 ounces and 58,000 ounces of gold and 2,000 tonnes and 2,400 tonnes of copper, which equates to a gold equivalent 64,000 ounces and 72,000 ounces compared to 72,304 ounces in 2016. 


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Anglo Asian Mining Plc Timeline

January 17 2017

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