TIDMAAZ

RNS Number : 7158C

Anglo Asian Mining PLC

13 October 2022

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

13 October 2022

Anglo Asian Mining plc

Q3 and 9M 2022 Production and Operations review

Production of 14,309 gold equivalent ounces in Q3 2022

Cash of $15.3 million at 30 September 2022

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM-listed gold, copper and silver producer operating in Azerbaijan, is pleased to provide a production, sales and operations review for the three and nine months to 30 September 2022 ("Q3 2022" and "9M 2022" respectively).

Operational update

-- Transformational acquisition of rights to three new concessions with significant copper reserves was passed into law on 5 July 2022

   --    Zafar mine design has advanced well 

o Portal location has been identified close to the processing facilities

o Geotechnical drilling is complete, with drill core testing underway

o Underground mining fleet and ancillary equipment have been selected for purchase

Production update

   --    Q3 2022 production of 14,309 gold equivalent ounces ("GEOs") (Q3 2021: 16,316 GEOs) 
   --    9M 2022 total production of 43,081 GEOs (9M 2021: 48,487 GEOs) 
   --    Full Year 2022 ("FY 2022") production guidance of 54,000 to 58,000 GEOs maintained 

Cash and inventory update

-- Cash of $15.3 million at 30 September 2022 (30 June 2022: $21.2 million) with the following payments made in Q3 2022

o Final 2021 dividend of $4.0 million

o Profits tax of $0.3 million

o Further investment of $0.8 million in Libero Copper & Gold Corporation

o $1.2 million paid for the acquisition of exploration data and associated studies and reports relating to Garadagh and Xarxar from AzerGold

-- An interim dividend for 2022 of US 4 cents ( Sterling 3.5559 pence) per ordinary share will be paid gross to shareholders on 3 November 2022

-- The Company had inventory at market value of $15.5 million at 30 September 2022 (gold and silver bullion of $11.8 million and copper concentrate of $3.7 million)

Anglo Asian CEO Reza Vaziri commented:

"The Company is delighted to report a good third quarter and year to date performance. Production figures remain robust, with total production of 14,309 gold equivalent ounces in the quarter, which remains largely in line with the output in the same period in the previous year. Copper production totalled 609 tonnes and silver totalled 45,063 ounces, an increase in production relative to the prior year period.

"We are also pleased to report an excellent advancement of the new mine at Zafar. Geotechnical drilling is complete, and the drill core is now in the process of being tested. We remain on track to bring Zafar into production in 2023.

"We look forward to updating the market on our strategy for developing of our new mines and the three new license areas in due course."

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, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please contact:

 
 Reza Vaziri        Anglo Asian Mining plc          Tel: +994 12 596 3350 
 Bill Morgan        Anglo Asian Mining plc          Tel: +994 502 910 400 
                   ------------------------------  ---------------------- 
 Stephen Westhead   Anglo Asian Mining plc          Tel: +994 502 916 894 
                   ------------------------------  ---------------------- 
 Ewan Leggat        SP Angel Corporate Finance      Tel: +44 (0) 20 3470 
  Adam Cowl          LLP                             0470 
                     Nominated Adviser and Broker 
                   ------------------------------  ---------------------- 
 Charlie Jack       Hudson Sandler                  Tel: +44(0) 20 7796 
  Harry Griffiths                                    4133 
                   ------------------------------  ---------------------- 
 

Notes to editors:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company produced 64,610 gold equivalent ounces ("GEOs") for the year ended 31 December 2021.

In December 2021, the Company undertook a private placement which acquired 19.8 per cent. of Libero Copper & Gold Corporation ("Libero"). The transaction was completed in January 2022. Libero is listed on the TSX Venture Exchange in Canada and owns, or has the option to acquire, several copper exploration properties in North and South America, including Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources.

On 5 July 2022, the Government of Azerbaijan ratified amendments to its Production Sharing Agreement, granting Anglo Asian three additional concessions totalling a combined area of 882 square kilometres. This includes the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper. The acquisition of these concessions is transformational to Anglo Asian's asset portfolio and underpins the strategic target of transitioning into a mid-tier copper focused miner.

https://www.angloasianmining.com/

Production overview

Q3 2022

   --    Total production of 14,309 GEOs (Q3 2021: 16,316 GEOs) 
   --    Gold production of 11,087 ounces (Q3 2021: 12,847 ounces): 

o 10,473 ounces contained within gold doré

o 33 ounces from sulfidisation, acidification, recycling and thickening ("SART") processing

o 581 ounces from flotation processing

   --    Copper production totalled 609 tonnes (Q3 2021: 573 tonnes): 

o 208 tonnes from SART processing

o 401 tonnes from flotation processing

   --    Silver production totalled 45,063 ounces (Q3 2021: 36,912 ounces): 

o 6,949 ounces contained within gold doré

o 24,020 ounces from SART processing

o 14,094 ounces from flotation processing

9M 2022

   --    Total production of 43,081 GEOs (9M 2021: 48,487 GEOs) 
   --    Gold production of 31,993 ounces (9M 2021: 37,096 ounces) 
   --    Copper production totalled 1,892 tonnes (9M 2021: 1,906 tonnes) 
   --    Silver production totalled 144,562 ounces (9M 2021: 115,843 ounces) 

Sales

-- Q3 2022 gold bullion sales of 10,000 ounces at an average of $1,727 per ounce (Q3 2021: 6,828 ounces sold at an average of $1,815 per ounce)

-- Q3 2022 copper concentrate shipments totalled 1,618 dry metric tonnes ("dmt") with a sales value of $3.1 million (excluding Government of Azerbaijan profit share) (Q3 2021: 3,549 dmt with a sales value of $5.7 million)

Company financials

-- The Company had cash of $15.3 million at 30 September 2022 ($21.2 million at 30 June 2022). The Company made the following payments in Q3 2022

o Final dividend for 2021: $4.0 million

o Profits tax: $0.3 million

o Further investment in Libero Copper & Gold Corporation: $0.8 million

o Data purchase from AzerGold: $1.2 million

Zafar mine update

-- Mine design and geotechnical sampling for construction planning is well advanced for the Zafar mine

-- A site for the portal has been identified close to the Company's existing processing facilities and about 1,000 metres from the planned underground gallery. Geotechnical drilling has been completed and the drill core is now being tested

-- Underground mining equipment has been selected with the major drilling equipment being supplied by Epiroc and the mining and loading equipment being supplied by Caterpillar. The procurement of auxiliary and support is also well advanced from regional suppliers mainly located in Turkey

Gedabek - mining, detailed production and sales

The Company mined the following amounts and grades of ore in the nine months to 30 September 2022:

 
                    6 months to           3 months to            9 months to 
                   30 June 2022*        30 September 2022      30 September 2022 
                            Average                Average                Average 
                               gold                   gold                   gold 
 Mine           Ore mined     grade    Ore mined     grade    Ore mined     grade 
                 (tonnes)     (g/t)     (tonnes)     (g/t)     (tonnes)     (g/t) 
               ----------  --------  -----------  --------  -----------  -------- 
 Open pit         910,541      0.50      360,730      0.36    1,277,271      0.46 
 Gadir - u/g       67,007      1.43       33,452      1.39      100,459      1.42 
 Gedabek - 
  u/g             189,764      1.24      110,102      1.12      299,866      1.19 
               ----------  --------  -----------  --------  -----------  -------- 
 Total          1,167,312      0.67      504,284      0.59    1,677,596      0.65 
-------------  ----------  --------  -----------  --------  -----------  -------- 
 

* There have been some minor changes to the previously reported figures following the reconciliation of ore stockpiles.

The Company processed the following amounts and grades of ore by leaching for FY 2021 and Q1 to Q3 2022:

 
 Quarter ended              Ore processed               Gold grade of ore processed 
                 ----------------------------------  -------------------------------- 
                    Heap        Heap                    Heap       Heap 
                    leach       leach                   leach      leach 
                     pad         pad      Agitation      pad        pad     Agitation 
                   crushed       ROM       leaching    crushed      ROM      leaching 
                     ore         ore        plant*       ore        ore       plant* 
                   (tonnes)    (tonnes)    (tonnes)     (g/t)      (g/t)      (g/t) 
                 ----------                          ----------  --------  ---------- 
 31 March 2021     110,612     258,097     154,373      0.90       0.61       1.92 
 30 June 2021      154,619     177,369     164,288      0.81       0.59       1.64 
 30 September 
  2021             154,112     194,816     171,029      0.79       0.51       1.65 
 31 December 
  2021             113,623     309,374     151,701      0.68       0.49       1.53 
                 ----------  ----------  ----------  ----------  --------  ---------- 
 FY 2021           532,966     939,656     641,391      0.80       0.54       1.68 
---------------  ----------  ----------  ----------  ----------  --------  ---------- 
 31 March 2022     115,173     273,577     144,275      0.75       0.48       1.63 
 30 June 2022      82,814      299,168     162,239      0.78       0.53        1.4 
                 ----------  ----------  ----------  ----------  --------  ---------- 
 H1 2022           197,987     572,745     306,514      0.76       0.51       1.48 
---------------  ----------  ----------  ----------  ----------  --------  ---------- 
 30 September 
  2022             92,398      302,714     162,669      0.81       0.57       1.42 
---------------  ----------  ----------  ----------  ----------  --------  ---------- 
 

* includes previously heap leached ore.

The Company processed the following amounts of ore and contained metal by flotation for FY 2021 and Q1 to Q3 2022 :

 
                  Ore processed   Gold content    Silver     Copper 
 Quarter ended                                    content    content 
                    (tonnes)        (ounces)     (ounces)   (tonnes) 
                 --------------  -------------  ---------  --------- 
 31 March 2021       111,060          920         15,782      652 
 30 June 2021        116,910         1,251        23,870      596 
 30 September 
  2021               121,283         1,231        19,939      519 
 31 December 
  2021               129,384         1,856        28,480      762 
                 --------------  -------------  ---------  --------- 
 FY 2021             478,637         5,258        88,071     2,529 
---------------  --------------  -------------  ---------  --------- 
 31 March 2022       104,475         1,921        33,522      577 
 30 June 2022        114,099         1,293        24,209      745 
                 --------------  -------------  ---------  --------- 
 H1 2022             218,574         3,214        57,731     1,322 
---------------  --------------  -------------  ---------  --------- 
 30 September 
  2022               150,867         1,314        18,141      724 
---------------  --------------  -------------  ---------  --------- 
 

The following table summarises gold doré production and sales at Gedabek for FY 2021 and Q1 to Q3 2022:

 
Quarter ended     Gold produced*        Silver      Gold sales**    Gold Sales 
                     (ounces)          produced*      (ounces)         price 
                                       (ounces)                      ($/ounce) 
 
31 March 2021         11,541            4,916          5,635           1,697 
30 June 2021          11,789            5,921          13,947          1,808 
                ------------------  -------------  -------------  --------------- 
H1 2021               23,330            10,837         19,582          1,776 
                ------------------  -------------  -------------  --------------- 
30 September 
 2021                 12,314            5,473          6,828           1,815 
31 December 
 2021                 10,561            5,430          13,153          1,825 
                ------------------  -------------  -------------  --------------- 
H2 2021               22,875            10,903         19,981          1,821 
                ------------------  -------------  -------------  --------------- 
FY 2021               46,205            21,740         39,563          1,799 
--------------  ------------------  -------------  -------------  --------------- 
31 March 2022         8,963             7,574          7,519           1,904 
30 June 2022          10,137            7,620          3,754           1,895 
                ------------------  -------------  -------------  --------------- 
H1 2022               19,100            15,194         11,273          1,901 
--------------  ------------------  -------------  -------------  --------------- 
30 September 
 2022                 10,473            6,949          10,000          1,727 
--------------  ------------------  -------------  -------------  --------------- 
Note 
 
 

* including Government of Azerbaijan's share

** excluding Government of Azerbaijan's share

The gold and silver production from agitation and heap leaching for Q3 2022 is as follows:

 
 Quarter                        Gold                               Silver 
  ended 
--------------- 
                  Agitation     Heap        Total     Agitation     Heap        Total 
                   leaching    leaching                leaching    leaching 
                   (ounces)    (ounces)    (ounces)    (ounces)    (ounces)    (ounces) 
---------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 31 March 2022      5,674       3,289       8,963       4,803       2,771       7,574 
                 ----------  ----------  ----------  ----------  ----------  ---------- 
 30 June 2022       6,196       3,941      10,137       4,654       2,966       7,620 
                 ----------  ----------  ----------  ----------  ----------  ---------- 
 H1 2022           11,870       7,230      19,100       9,457       5,737      15,194 
---------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 30 Sept 2022       5,517       4,956      10,473       3,673       3,276       6,949 
                 ----------  ----------  ----------  ----------  ----------  ---------- 
 

The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2021 and Q1 to Q3 2022 :

 
                              Concentrate    Copper      Gold      Silver 
                              production*   content*   content*   content* 
                                 (dmt)      (tonnes)   (ounces)   (ounces) 
                             ------------  ---------  ---------  --------- 
 2021 
 Quarter ended 31 March 
 SART processing                  473         276         13       19,850 
 Flotation                       2,375        362        353       10,599 
                             ------------  ---------  ---------  --------- 
 Total                           2,848        638        366       30,449 
                             ------------  ---------  ---------  --------- 
 
 Quarter ended 30 June 
 SART processing                  512         301         12       22,428 
 Flotation                       2,652        394        539       15,216 
                             ------------  ---------  ---------  --------- 
 Total                           3,164        695        551       37,644 
                             ------------  ---------  ---------  --------- 
 
 Quarter ended 30 September 
 SART processing                  503         265         13       19,526 
 Flotation                       2,600        308        517       11,913 
                             ------------  ---------  ---------  --------- 
 Total                           3,103        573        530       31,439 
                             ------------  ---------  ---------  --------- 
 
 Quarter ended 31 December 
 SART processing                  338         193         16       16,414 
 Flotation                       3,584        550       1,012      16,829 
                             ------------  ---------  ---------  --------- 
 Total                           3,922        743       1,028      33,243 
                             ------------  ---------  ---------  --------- 
 
 2022 
 Quarter ended 31 March 
 SART processing                  330         188         12       25,108 
 Flotation                       2,586        380       1,065      18,007 
                             ------------  ---------  ---------  --------- 
 Total                           2,916        568       1,077      43,115 
                             ------------  ---------  ---------  --------- 
 Quarter ended 30 June 
 SART processing                  316         168         14       25,548 
 Flotation                       3,811        547        715       15,642 
                             ------------  ---------  ---------  --------- 
 Total                           4,127        715        729       41,190 
                             ------------  ---------  ---------  --------- 
 Quarter ended 30 September 
 SART processing                  367         208         33       24,020 
 Flotation                       2,805        401        581       14,094 
                             ------------  ---------  ---------  --------- 
 Total                           3,172        609        614       38,114 
                             ------------  ---------  ---------  --------- 
 

Note

* including Government of Azerbaijan's share.

Certain amounts for SART and flotation production may differ to those previously disclosed due to final reconciliation of production.

The following table summarises total copper concentrate production and sales for FY 2021 and Q1 to Q3 2022. 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)         ($000) 
 Quarter ended 
 
 31 March 2021       2,848        638        366       30,499         -              - 
 30 June 2021        3,164        695        551       37,644       3,467          9,066 
                 ------------  ---------  ---------  ---------  ------------  -------------- 
 H1 2021             6,012       1,333       917       68,143       3,467          9,066 
                 ------------  ---------  ---------  ---------  ------------  -------------- 
 
 30 September 
  2021               3,103        573        530       31,439       3,549          5,712 
 31 December 
  2021               3,922        743       1,028      33,243       4,132          8,941 
                 ------------  ---------  ---------  ---------  ------------  -------------- 
 H2 2021             7,025       1,316      1,558      64,682       7,681         14,653 
                 ------------  ---------  ---------  ---------  ------------  -------------- 
 FY 2021            13,037       2,649      2,475     132,825      11,148         23,719 
---------------  ------------  ---------  ---------  ---------  ------------  -------------- 
 
 31 March 2022       2,916        568       1,077      43,115       1,477          3,248 
 30 June 2022        4,127        715        729       41,190       4,642          8,127 
                 ------------  ---------  ---------  ---------  ------------  -------------- 
 H2 2022             7,043       1,283      1,806      84,305       6,119         11,375 
---------------  ------------  ---------  ---------  ---------  ------------  -------------- 
 30 September 
  2022               3,172        609        614       38,114       1,718          3,378 
---------------  ------------  ---------  ---------  ---------  ------------  -------------- 
 

* including Government of Azerbaijan's share

** excludes Government of Azerbaijan's share

**ENDS**

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October 13, 2022 02:00 ET (06:00 GMT)

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