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Interim results for the six month period to 30 June 2015
Anglo Asian Mining, the AIM listed gold, copper and silver producer focused in Azerbaijan, has issued interim results for the six month period ended 30 June 2015 (“H1 2015”). Note that all references to “$” are to United States dollars.
Operational overview
· Robust H1 2015 production figures from the Gedabek gold, silver and copper mine in Azerbaijan:
o Record gold production of 35,938 ounces (H1 2014: 27,054 ounces)
o Copper concentrate production of 689 dry metric tonnes (H1 2014: 646 dmt)
o Silver production of 6,477 ounces (H1 2014: 21,924 ounces)
· Improved gold and copper sales achieved during H1 2015, despite reduced metal prices:
o Gold sales of 33,295 ounces at an average of $1,204 per ounce (H1 2014: 23,545 ounces at an average of $1,297 per ounce)
o Copper concentrate sales of 692 dmt (H1 2014: 567 dmt)
· H2 2015 gold production performing above management’s plan – 50,779 ounces of gold produced from 1 January to 13 September 2015
· Average cash operating costs significantly reduced – produced gold (including the Government of Azerbaijan’s share) at $736 per ounce, a decrease of approximately 27 per cent. compared to the comparative first half of $1,014 per ounce
· Reduction in net debt to $48.7 million at 30 June 2015 from $52.4 million at 31 December 2014 despite the on-going capital expenditure programme
· Gadir adit at Gedabek has reached the ore body – 2,116 tonnes of ore at 9.45 grammes per tonne of gold has been mined in H1 2015
· 13,850 tonnes of ore at an average grade of 6.12 grammes per tonne from the Gosha mine was processed in H1 2015
· Construction of the small scale flotation plant to improve gold and copper production is very near completion with commissioning now in progress – expected to add approximately 5,000 ounces of gold and 1,600 tonnes of copper for FY 2015
· On target to produce 70,000 ounces to 75,000 ounces of gold for FY 2015 which represents a 16 per cent. to 24 per cent. increase over FY 2014 production of 60,285 ounces
Financial overview
· Increased revenue of $41.8 million (H1 2014: $32.7 million) due to increased precious metal sales
· Gross profit of $1.9 million (H1 2014: gross loss of $0.8 million)
· Loss before taxation reduced to $4.1 million (H1 2014: $7.5 million)
· Increased operating cash flow before movements in working capital of $10.7 million (H1 2014: $2.1 million)
· Capital expenditure of $9.1 million (H1 2014: $7.1 million) mainly on deferred stripping expenditure, increasing the capacity of the tailings facility and the flotation plant
· Decreased net debt of $48.7 million as at 30 June 2015 (31 December 2014: $52.4 million)
· Cash of $1.8 million as at 30 June 2015 (31 December 2014: $0.3 million) and unused credit facilities of $1.4 million
