18:00 Tue 14 Jan 2020
Anglo Asian Mining - Q4 & Full Year 2019 Production & Operations Review
Quarter 4 and Full Year 2019 Production and Operations review
Full year production of 82,795 gold equivalent ounces calculated at budgeted prices and net cash of
Note that all references to "$" are to
Overview
· Record revenues anticipated for FY 2019 in excess of
· Strong cash generation of
o Net cash increased to
o Company will make its final debt repayment in early
· 82,795 gold equivalent ounces ("GEOs") produced during FY 2019 calculated using budgeted metal prices
o 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
"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
"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."
Production Overview
Q4 2019
· Three per cent. year on year ("y-o-y") decrease in total production to 21,284 GEOs (Q4 2018: 21,945 ounces)
· Copper production totalled 729 tonnes (Q4 2018: 588 tonnes)
o 113 tonnes from SART processing
o 616 tonnes from flotation
· Gold production totalled 17,907 ounces (Q4 2018: 18,209 ounces):
o 15,912 ounces contained within gold doré
o 16 ounces from SART processing
o 1,979 ounces from flotation
· Silver production totalled 41,686 ounces (Q4 2018: 65,822 ounces):
o 3,880 ounces contained within gold doré
o 11,159 ounces from SART processing
o 26,647 ounces from flotation
FY 2019
· Total production of 82,795 GEOs (FY 2018: 83,736 GEOs) at budgeted metal prices (81,399 GEOs at actual metal prices)
· 34 per cent y-o-y increase in copper production to 2,210 tonnes (FY 2018: 1,645 tonnes)
· Four per cent. y-o-y decrease in gold production to 70,098 ounces (FY 2018: 72,798 ounces)
· Silver production totalled 159,356 ounces (FY 2018: 210,184 ounces)
Sales
Q4 2019
· Q4 2019 gold bullion sales of 12,509 ounces at an average of
· Q4 2019 copper concentrate shipments to the customer totalled 3,723 dry metric tonnes ("dmt") with a sales value of
FY 2019
· FY 2019 gold bullion sales of 54,061 ounces at an average of
· FY 2019 copper concentrate shipments to the customer totaled 10,264 dmt with a sales value of
Company financials
· Net cash, being cash and cash equivalents less interest-bearing loans and borrowings, totalled
Gedabek - mining, production and sales
The Company mined the following ore in the year ended
|
9 months to |
3 months to |
12 months to 31 December 2019 |
|||
Mine |
Ore mined |
Average gold grade |
Ore mined |
Average gold grade |
Ore mined |
Average gold grade |
|
(tonnes) |
(g/t) |
(tonnes) |
(g/t) |
(tonnes) |
(g/t) |
Open pit |
1,140,657 |
0.72 |
334,621 |
0.78 |
1,475,278 |
0.73 |
Ugur - o/pit |
906,499 |
1.35 |
376,938 |
1.02 |
1,283,437 |
1.24 |
Gadir - u/g |
127,028 |
2.78 |
20,288 |
2.43 |
147,316 |
2.73 |
Gosha - u/g |
- |
- |
7,235 |
2.81 |
7,235 |
2.81 |
Total |
2,174,184 |
1.10 |
739,082 |
0.97 |
2,913,266 |
1.06 |
Note that there may have been some minor changes to the previously reported figures following reconciliation of ore stockpiles.
As previously reported, low grade ore (less than 1.5 grammes per tonne of gold) is being treated by heap leaching, whilst higher grade ore (more than 1.5 grammes per tonne of gold) is being processed through the agitation leaching plant.
Anglo Asian stacked 98,280 tonnes of dry crushed ore onto heap leach pads with an average gold content of 0.86 grammes per tonne during Q4 2019 (Q3 2019: 148,269 tonnes with an average gold content of 0.93 grammes per tonne). The Company also heap leached uncrushed Run of Mine ("ROM") ore. During Q4 2019, Anglo Asian stacked 288,583 tonnes of ROM ore onto heap leach pads with an average gold content of 0.49 grammes per tonne (Q3 2019: 261,414 tonnes with an average gold content of 0.46 grammes per tonne).
The Company processed, during Q4 2019, 181,710 dry tonnes of ore with an average gold content of 2.44 grammes per tonne through the agitation leaching plant (Q3 2019: 192,097 dry tonnes with an average gold content of 2.25 grammes per tonne). 125,205 dry tonnes of ore containing an average copper content of 0.63 per cent. were processed by the flotation plant in Q4 2019 (Q3 2019: 127,762 dry tonnes of ore containing an average copper content of 0.55 per cent).
During Q4 2019, the Company produced gold doré containing 15,912 ounces of gold and 3,880 ounces of silver at Gedabek (Q3 2019: 16,619 ounces of gold and 4,420 ounces of silver). During Q4 2019, the agitation leaching plant produced 12,647 and 3,037 ounces of gold and silver, respectively, and the heap leach operations produced 3,265 and 843 ounces of gold and silver, respectively.
SART processing in Q4 2019 produced 165 dmt of copper concentrate containing 113 tonnes of copper and 16 ounces of gold (Q3 2019: 154 dmt of copper concentrate containing 70 tonnes of copper and 10 ounces of gold). During FY 2019 SART produced 311 tonnes of copper and 45 ounces of gold compared to FY 2018 production of 399 tonnes of copper and 32 ounces of gold.
Flotation processing in Q4 2019 produced 3,354 dmt of copper concentrate containing 616 tonnes of copper, 1,979 ounces of gold and 26,647 ounces of silver (Q3 2019: 2,793 dmt of copper concentrate containing 450 tonnes of copper, 1,168 ounces of gold and 17,142 ounces of silver).
The following table summarises gold doré production and sales at Gedabek for FY 2018 and FY 2019:
|
Gold produced* (ounces) |
Silver Produced* (ounces) |
Gold sales** (ounces) |
Gold Sales price ($/ounce) |
Quarter ended |
|
|
|
|
|
15,750 |
7,110 |
14,956 |
1,328 |
|
15,537 |
6,014 |
10,822 |
1,307 |
H1 2018 |
31,287 |
13,124 |
25,778 |
1,319 |
|
18,885 |
7,416 |
18,637 |
1,216 |
|
15,444 |
5,646 |
15,066 |
1,231 |
H2 2018 |
34,329 |
13,062 |
33,703 |
1,223 |
FY 2018 |
65,616 |
26,186 |
59,481 |
1,265 |
|
|
|
|
|
|
15,547 |
6,634 |
13,191 |
1,306 |
|
16,073 |
4,773 |
13,467 |
1,332 |
H1 2019 |
31,620 |
11,407 |
26,658 |
1,319 |
|
16,619 |
4,420 |
14,894 |
1,513 |
|
15,912 |
3,880 |
12,509 |
1,481 |
H2 2019 |
32,531 |
8,300 |
27,403 |
1,498 |
FY 2019 |
64,151 |
19,707 |
54,061 |
1,410 |
Note that some of the figures in the above table may differ from previously reported due to agreement of final assay.
* including Government of
** excludes Government of
The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2018 and FY 2019:
|
Concentrate |
Copper |
Gold |
Silver |
|
production* |
content* |
content* |
content* |
2018 |
(dmt) |
(tonnes) |
(ounces) |
(ounces) |
Quarter ended 31 March |
|
|
|
|
SART processing |
223 |
114 |
6 |
22,118 |
Flotation |
819 |
141 |
735 |
11,587 |
Total |
1,042 |
255 |
741 |
33,705 |
|
|
|
|
|
Quarter ended 30 June |
|
|
|
|
SART processing |
260 |
137 |
6 |
21,800 |
Flotation |
1,136 |
195 |
1,226 |
16,387 |
Total |
1,396 |
332 |
1,232 |
38,187 |
|
|
|
|
|
Quarter ended 30 September |
|
|
|
|
SART processing |
162 |
81 |
7 |
17,357 |
Flotation |
2,501 |
389 |
2,437 |
34,573 |
Total |
2,663 |
470 |
2,444 |
51,930 |
|
|
|
|
|
Quarter ended 31 December |
|
|
|
|
SART processing |
109 |
67 |
13 |
14,229 |
Flotation |
3,557 |
521 |
2,752 |
45,947 |
Total |
3,666 |
588 |
2,765 |
60,176 |
|
|
|
|
|
2019 |
|
|
|
|
Quarter ended 31 March |
|
|
|
|
SART processing |
142 |
63 |
11 |
16,201 |
Flotation |
2,871 |
450 |
1,687 |
28,461 |
Total |
3,013 |
513 |
1,698 |
44,662 |
|
|
|
|
|
Quarter ended 30 June |
|
|
|
|
SART processing |
143 |
65 |
8 |
12,794 |
Flotation |
2,252 |
383 |
1,068 |
15,491 |
Total |
2,395 |
448 |
1,076 |
28,285 |
Quarter ended 30 September |
|
|
|
|
SART processing |
154 |
70 |
10 |
11,754 |
Flotation |
2,793 |
450 |
1,168 |
17,142 |
Total |
2,947 |
520 |
1,178 |
28,896 |
Quarter ended 31 December |
|
|
|
|
SART processing |
165 |
113 |
16 |
11,159 |
Flotation |
3,354 |
616 |
1,979 |
26,647 |
Total |
3,519 |
729 |
1,995 |
37,806 |
Certain amounts for flotation production may different to those previously disclosed due to final reconciliation of production.
* including Government of
The following table summarises total copper concentrate production and sales at Gedabek for FY 2018 and FY 2019. 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) |
( |
Quarter ended |
|
|
|
|
|
|
|
1,042 |
255 |
741 |
33,705 |
608 |
1,715 |
|
1,396 |
332 |
1,232 |
38,187 |
1,736 |
4,221 |
H1 2018 |
2,438 |
587 |
1,973 |
71,892 |
2,344 |
5,936 |
|
|
|
|
|
|
|
|
2,663 |
470 |
2,444 |
51,930 |
1,557 |
3,368 |
|
3,666 |
588 |
2,765 |
60,176 |
3,774 |
6,131 |
H2 2018 |
6,329 |
1,058 |
5,209 |
112,106 |
5,331 |
9,499 |
FY 2018 |
8,767 |
1,645 |
7,182 |
183,998 |
7,675 |
15,435 |
|
|
|
|
|
|
|
|
3,013 |
513 |
1,698 |
44,662 |
279 |
718 |
|
2,395 |
448 |
1,076 |
28,285 |
4,007 |
6,771 |
H1 2019 |
5,408 |
961 |
2,774 |
72,947 |
4,286 |
7,492 |
|
|
|
|
|
|
|
|
2,947 |
520 |
1,178 |
28,896 |
2,255 |
3,438 |
|
3,519 |
729 |
1,995 |
37,806 |
3,723 |
6,931 |
H2 2019 |
6,466 |
1,249 |
3,173 |
66,702 |
5,978 |
10,369 |
FY 2019 |
11,874 |
2,210 |
5,947 |
139,649 |
10,264 |
17,861 |
|
|
|
|
|
|
|
* including Government of
** excludes Government of
FY 2019 production expressed as gold equivalent ounces
The Company calculates the gold equivalent of copper and silver by multiplying the quantity of the metal by its price and then dividing by the price of gold. This is done at the following prices:
For calculation of forecast production: Budget prices set prior to the start of the financial year.
For calculation of actual production: Actual market prices at the time of production.
The budgeted prices of gold, silver and copper and their market prices at the start and end of 2019 together with their corresponding gold equivalent ounces are as follows:
|
Price of metal |
Gold equivalent ounces of metal |
||||
Metal |
Budget
$ |
$ |
$ |
Budget
Ounces |
Ounces |
Ounces |
Gold |
1,250 |
1,283 |
1,517 |
1.000 |
1.000 |
1.000 |
Silver |
15.00 |
15.51 |
17.85 |
0.012 |
0.012 |
0.012 |
Copper |
6,100 |
5,965 |
6,174 |
4.880 |
4.649 |
4.070 |
The increase in the market price of gold relative to the market price of copper throughout the year has resulted in the steady decrease of one tonne of copper expressed as gold equivalent ounces from 4.88 ounces used for the budget to 4.07 ounces at
Net cash
The Company had net cash at
|
$m |
Cash at bank and on hand |
22.9 |
|
(1.7) |
Net cash |
21.2 |
The Company made payments of
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 until the release of this announcement.
**ENDS**
For further information please visit www.angloasianmining.com or contact:
|
|
Tel: +994 12 596 3350 |
|
|
Tel: +994 502 910 400 |
|
|
Tel: +994 502 916 894 |
|
Nominated Adviser and Broker |
Tel: +44 (0) 20 3470 0470 |
|
|
Tel + 44 (0) 20 3470 0470 |
|
Blytheweigh Financial |
Tel: +44 (0) 20 7138 3224 |
|
Blytheweigh Financial |
Tel: +44 (0) 20 7138 3224 |
Notes:
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
The Company produced 83,736 gold equivalent ounces ('GEOs') for the year ended
Anglo Asian is also actively seeking to exploit its first mover advantage in
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