Anglo Asian Mining reports production in line with guidance

Azerbaijan-focussed gold, copper and silver producer Anglo Asian Mining reported production of 18,609 gold equivalent ounces in its first quarter on Wednesday, calculated using budgeted metal prices, which was in line with the guidance it announced on 11 March.

The AIM-traded company said reportable production at actual metal prices totalled 18,216 gold equivalent ounces for the three months ended 31 March, down from 20,287 ounced year-on-year, as the price of gold continued to increase relative to copper.

It said its current 2020 financial year production guidance stood at between 75,000 and 80,000 gold equivalent ounces, with revenue guidance standing at more than $100m if current metal prices remained unchanged.

Gold production was 15,874 ounces for the first quarter, down from 17,245 ounces year-on-year, while copper production increased to 559 tonnes from 513 tonnes.

Gold doré production in March was shipped to the refiner in April due to Covid-19 delays, but despite that, cash generation in the first quarter still stood at $4.8m.

Anglo Asian noted that it achieved its debt-free milestone during the period, with cash standing at $26m as at 31 March, adding that operations at Gedabek were continuing during the Covid-19 coronavirus pandemic, with the Baku office remaining open.

“I am very pleased to report the first quarter 2020 production in line with the company's guidance despite the Covid-19 emergency,” said chief executive officer Reza Vaziri.

“The protection of our staff remains paramount and all possible measures are being implemented at Gedabek to safeguard their health.

“We did not ship our March gold doré production until April, but the company still generated significant cash in the quarter due to the increasing gold price and is now debt free.”

Vaziri described the global situation as “unprecedented”, adding that it was placing “exceptional demands” on the company and its staff.

“Whilst the future evolution of the Covid-19 health emergency is currently unknown, your company is well placed to weather the challenges and benefit from the increasing gold price,” he told shareholders.

At 1039 BST, shares in Anglo Asian Mining were down 4.85% at 123.7p.