17:00 Wed 15 Jul 2020
Anglo Asian Mining - Q2 & H1 2020 Production and Operations Review
Q2 & H1 2020 Production and Operations Review
Production of 14,819 gold equivalent ounces in Q2 2020 calculated using budget metal prices
Increase in Cash to
Note that all references to "$" are to
Overview
· Cash increased by
· 14,819 gold equivalent ounces ("GEOs") produced in Q2 2020 calculated using budgeted metal prices
· Reportable production at actual metal prices of 14,301 GEOs (Q2 2019: 19,618 GEOs)
· Gold production of 12,048 ounces (Q2 2019: 17,149 ounces)
o Lower gold production in Q2 2020 due to the lower grade of ore processed from the Gedabek open pit and less ore mined from the Gadir underground mine
o COVID-19 restrictions had some impact on efficiency at Gedabek
· Copper production increased to 648 tonnes (Q2 2019: 448 tonnes)
· Gold doré production from 7 May to
· Current FY 2020 production guidance of 75,000 GEOs to 80,000 GEOs and revenue guidance of over
o New portal opened with a decline currently being constructed to allow underground mining of high-grade ore beneath the Gedabek open pit starting in Q4 2020
o Previously heap leached ore with high residual gold grades being recovered from old heaps and reprocessed by agitation leaching
· New JORC resource and reserves statements to be released by the end of Q3 2020
·
Anglo Asian CEO
"The first half of the year has presented a number of challenges for the Company. However, it is pleasing to note that we have maintained gold shipments and increased our net cash position by
"The COVID-19 pandemic has had some effect on our operations at Gedabek including our second quarter production. Our workforce remains highly committed but the COVID-19 restrictions in
"The lower gold production than the previous quarter was also a result of lower than anticipated gold grades. A number of measures are currently on-going to ensure we meet our production guidance for the year. These include constructing a new decline to allow underground mining of the high-grade ore below the Gedabek open pit and the reprocessing by agitation leaching of previously heap leached ore with residual high gold grades.
"The gold price continues to perform favourably and, in Q2 2020, we received an increase of approximately
"I look forward to a more productive second half of the year as we remain on track to meet our FY 2020 production guidance of 75,000 GEOs to 80,000 GEOs and revenue guidance of over
Measures to ensure FY 2020 Guidance is achieved
The Company is carrying out several measures to ensure the FY 2020 Guidance is achieved:
A new portal has been opened and a new decline is being constructed of approximately 500 metres to access the high-grade extension of the ore body under the main open pit. It is anticipated the decline will be completed around the end of the current quarter depending on the hardness of rock encountered. It will join the tunnel currently being constructed from the Gadir underground mine to give the two egresses required to commence mining. It is anticipated underground mining of Gedabek ore will begin in Q4 2020.
Around 100,000 tonnes of previously heap leached ore containing gold grades greater than two grammes per tonne has been identified. This ore, which was processed in the early years of the Company's life, will be recovered from the old heaps and retreated by agitation leaching in H2 2020. The final lift of the tailings dam wall is almost complete, which is releasing earth-moving equipment that will be transferred to this task.
Production Overview
Q2 2020
· Total production of 14,301 GEOs (Q2 2019: 19,618 GEOs)
· Gold production totalled 12,048 ounces (Q2 2019: 17,149 ounces):
o 11,468 ounces contained within gold doré
o Seven ounces from SART processing
o 573 ounces from flotation
· Copper production totalled 648 tonnes (Q2 2019: 448 tonnes):
o 151 tonnes from SART processing
o 497 tonnes from flotation processing
· Silver production totalled 23,884 ounces (Q2 2019: 33,058 ounces):
o 3,449 ounces contained within gold doré
o 10,893 ounces from SART processing
o 9,542 ounces from flotation
H1 2020
· Total reportable production of 32,501 GEOs (H1 2019: 39,905 GEOs)
· Gold production totalled 27,922 ounces (H1 2019: 34,394 ounces)
· Copper production totalled 1,207 tonnes (H1 2019: 963 tonnes)
· Silver production totalled 58,529 ounces (H1 2019: 84,354 ounces)
· On track to achieve forecast production for FY 2020 of 75,000 to 80,000 GEOs
Sales overview
· Q2 2020 gold bullion sales of 12,743 ounces at an average of
· Q2 2020 copper concentrate shipments to the customer totalled 3,526 dry metric tonnes ("dmt") with a sales value of
Company financials
· Net cash, being cash less interest-bearing loans and borrowing equivalents, totalled
Operations review
The Company mined the following ore in the six months ended
|
12 months to 31 December 2019 |
3 months to |
3 months to |
|||
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 |
1,475,278 |
0.73 |
292,480 |
0.86 |
197,014 |
0.99 |
Ugur - o/pit |
1,283,437 |
1.24 |
285,600 |
1.08 |
134,539 |
0.79 |
Gadir - u/g |
147,316 |
2.73 |
20,243 |
2.64 |
26,445 |
2.48 |
Gosha - u/g |
7,235 |
2.81 |
- |
- |
4,517 |
2.50 |
Total |
2,913,266 |
1.06 |
598,323 |
1.03 |
362,515 |
1.04 |
Anglo Asian stacked 139,752 tonnes of dry crushed ore on to heap leach pads with an average gold content of 0.79 grammes per tonne of gold during Q2 2020 (Q1 2020: 132,731 tonnes with an average gold content of 0.84 grammes per tonne of gold). The Company also heap leached uncrushed Run of Mine ("ROM") ore. During Q2 2020, Anglo Asian stacked 134,675 tonnes of ROM ore on to heap leach pads with an average gold content of 0.44 grammes per tonne of gold (Q1 2020: 258,121 tonnes with an average gold content of 0.49 grammes per tonne of gold).
The Company processed 161,079 dry tonnes of ore with an average gold content of 1.95 grammes per tonne of gold through the agitation leaching plant in Q2 2020 (Q1 2020: 163,379 dry tonnes with an average gold content of 2.53 grammes per tonne of gold). 136,314 dry tonnes of ore containing an average copper content of 0.56 per cent. were processed by the flotation plant (Q1 2020: 126,354 dry tonnes of ore containing an average copper content of 0.49 per cent.).
The Company produced gold doré containing 11,468 ounces of gold and 3,449 ounces of silver at Gedabek (Q1 2020: 15,041 ounces of gold and 3,852 ounces of silver) in the quarter. During Q2 2020, the agitation leaching plant produced 8,139 and 2,440 ounces of gold and silver, respectively, and the heap leach operations produced 3,329 and 1,008 ounces of gold and silver, respectively.
SART processing produced 267 dmt of copper concentrate containing 151 tonnes of copper, seven ounces of gold and 10,893 ounces of silver in Q2 2020 (Q1 2020: 221 dmt of copper concentrate containing 114 tonnes of copper, eight ounces of gold and 12,898 ounces of silver).
In Q2 2020, flotation processing produced 2,904 dmt of copper concentrate containing 497 tonnes of copper, 573 ounces of gold and 9,542 ounces of silver (Q1 2020, 2,773 dmt of copper concentrate containing 445 tonnes of copper, 825 ounces of gold and 17,895 ounces of silver).
The Company sold 3,526 dmt of copper concentrate in Q2 2020 for
The following table summarises gold doré production and sales at Gedabek for FY 2019 and H1 2020:
|
Gold produced* (ounces) |
Silver Produced* (ounces) |
Gold sales** (ounces) |
Gold Sales price ($/ounce) |
|||
Quarter ended |
|
|
|
|
|||
|
|
|
|
|
|||
|
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 |
|||
|
|
|
|
|
|||
|
15,041 |
3,852 |
11,236 |
1,577 |
|||
|
11,468 |
3,449 |
12,743 |
1,713 |
|||
H1 2020 |
26,509 |
7,301 |
23,979 |
1,649 |
|||
NOTE |
|
|
|
|
|||
* including Government of
** excludes Government of
The following table summarises copper concentrate production from both the SART and flotation plants for FY 2019 and H1 2020:
|
Concentrate |
Copper |
Gold |
Silver |
|
production* |
content* |
content* |
content* |
|
(dmt) |
(tonnes) |
(ounces) |
(ounces) |
|
|
|
|
|
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 Sept |
|
|
|
|
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 |
|
|
|
|
|
2020 |
|
|
|
|
Quarter ended 31 March |
|
|
|
|
SART processing |
221 |
114 |
8 |
12,898 |
Flotation |
2,773 |
445 |
825 |
17,895 |
Total |
2,994 |
559 |
833 |
30,793 |
|
|
|
|
|
Quarter ended 30 June |
|
|
|
|
SART processing |
267 |
151 |
7 |
10,893 |
Flotation |
2,904 |
497 |
573 |
9,542 |
Total |
3,171 |
648 |
580 |
20,435 |
* including Government of
Note that certain amounts for flotation production maybe different to those previously disclosed due to final reconciliation of production and sales.
The following table summarises total copper concentrate production and sales at Gedabek for FY 2019 and H1 2020. 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
7,350 |
H2 2019 |
6,466 |
1,249 |
3,173 |
66,702 |
5,978 |
10,788 |
FY 2019 |
11,874 |
2,210 |
5,947 |
139,649 |
10,264 |
18,280 |
|
|
|
|
|
|
|
|
2,994 |
559 |
833 |
30,793 |
2,018 |
2,863 |
|
3,171 |
648 |
580 |
20,435 |
3,526 |
4,707 |
H1 2020 |
6,165 |
1,207 |
1,413 |
51,228 |
5,544 |
7,570 |
* including Government of
** excluding Government of
Note that certain figures maybe different to those previously disclosed due to final reconciliation of concentrate production and sales.
Geological exploration report for H1 2020 and new JORC resource and reserves statements
The preparation of the H1 2020 geological exploration report is currently underway and the Company expects this to be released around the end of July. The Company can confirm the new JORC resource and reserves statements are still expected to be released by end of the current quarter (Q3 2020).
Company financial review
Cash
The Company had cash at
Gold doré shipment and sales
Gold doré production for the period 7 May to
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 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 |
|
Nominated Adviser and Broker |
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 kilometre area in the Lesser Caucasus mountains in western
The Company produced 81,399 gold equivalent ounces ("GEOs") for the year ended 31 December 2019. 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 doré 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.
The Company has a production target for the year to
Anglo Asian is also actively seeking to exploit its first mover advantage in
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