Anglo Asian Mining (LON:AAZ) will undershoot its gold production targets for 2013 after cold weather came in early and an unusually high copper content in ore mined recently hit gold recoveries.
The high concentrations of copper in the ore at the Gedabek mine in Azjebaijan meant gold recovery was reduced in the latest quarter because the copper used up the cyanide leaching agent.
Winter also gripped much earlier than expected (temperatures fell to minus 15), which affected the new agitation plant.
Fourth quarter production from Gedabek is now forecast at around 15,000 ounces with full year output predicted to hit 52,000 ounces against a previous target of 60,000.
Reza Vaziri, Anglo Asian’s chief executive said: “Naturally we are disappointed to report that we will marginally miss our FY2013 production target, however we believe our commencement of RC drilling to determine copper levels ahead of mining, and the determination of segregation and blending plans for this ore, will prevent a reoccurrence of this problem.
“ It is also important to note that circa 15,000 ounces of gold production for Q4 2013 at Gedabek would result in production for H2 2013 of circa 35,000 ounces of gold, representing a doubling over H1 2013 gold production of 17,497 ounces.
As such, the second half year production will have a positive impact on profitability despite the recent reduction in the gold price.
"In addition, mining development at our second gold development project, Gosha, 50 km away from away from Gedabek, which will feed into the new Agitation Leaching Plant, is progressing well, with production expected to come on line in H1 2014.”