Anglo Asian Mining PLC (LON:AAZ) shares surged on Wednesday after the firm declared its maiden dividend amid a jump in profits in its half-year results.
The AIM-listed miner declared an interim dividend of US$0.03 per share as it swung to a pre-tax profit of US$8.1mln from a US$1.3mln loss the year before as revenues climbed to US$40mln from US$29.8mln.
The hefty rise in revenues was attributed to higher production and an increase in the average selling price of metals, with an increase in gold bullion sales to 25,778 ounces at US$1,319 each from 15,689 ounces at US$1,238 each in the year-ago period, offsetting a reduction in sales of copper concentrate, which were down to 2,344 dry metric tonnes (dmt) at US5.9mln from 5,396 dmt at US$10.3mln in the first half of 2017.
The all sustaining cost of production per ounce of gold also fell 4% during the period to US$543 compared to a year ago.
The company also said it had reduced its net debt to US$2.9mln from US$18.1mln previously, while its cash balance rose to US$12.5mln from US$2.5mln last year.
In its outlook, company chairman Khosrow Zamani said its publication of an updated JORC resource for its Gedabek open pit mine, which extended its mine life by around five to six years, as well as the opening of the Ugur mine during the latter part of 2017 and 2018 to date had allowed the firm to “target significantly higher production” for the full year compared to the previous two and was on track to achieve the target.
For the whole of 2018, the company is targeting between 78,000 to 84,000 gold equivalent ounces (GEOs), a 13% increase from 2017.
Shares were up 9.8% at 59.3p.