TIDMAAZ
RNS Number : 6951Q
Anglo Asian Mining PLC
23 June 2020
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
23 June 2020
Anglo Asian Mining PLC
("Anglo Asian" or the "Company")
AGM 2020 - Letter from Reza Vaziri to Shareholders of the
Company
Anglo Asian Mining plc, the AIM listed gold, copper and silver
producer focused in Azerbaijan, is holding its annual general
meeting ("AGM") at 10:30am today at The London Marriott Hotel
Twickenham, 198 Whitton Road, Twickenham TW2 7BA. As previously
notified, this is a closed AGM and shareholders will not be able to
attend due to COVID-19 pandemic safety concerns. Accordingly, the
following letter to shareholders has been released by Reza Vaziri,
the Company's CEO.
Dear Shareholders
As you are all aware, I cannot be with any of you today. This is
personally a big disappointment as I always enjoy meeting
shareholders at our annual general meetings which are very valuable
opportunities for exchanging views. I and my fellow directors very
much look forward to meeting you all again next year. We all hope
that the COVID-19 pandemic restrictions will be behind us by that
time.
2019 has been another year of consistent delivery for the
Company. Anglo Asian Mining is now a well-established, dividend
paying, low cost producer of gold, copper and silver. The year
demonstrated the Company's ability to deliver excellent financial
performance and production whilst pursuing growth opportunities. To
date, the Company has also been able to weather the COVID-19
pandemic without significant disruption to its operations or
performance.
Our impressive financial performance in 2019 was highlighted by
revenues of US$92.1 million, a two per cent. year-on-year increase.
Profits after tax increased by over 18 per cent. to US$19.3 million
and we ended the year with US$21.1 million in net cash, a
significant increase compared to $6.1 million in the previous year.
I am delighted to report an increased total dividend for 2019 of
US$0.08 per ordinary share. We understand the importance of
dividends for shareholders and, as one of the few mining companies
on the London AIM market that pays dividends, we take great
pleasure in rewarding our shareholders for their continued
support.
Production levels in 2019 remained consistent and within our
forecast range at 81,399 gold equivalent ounces. Despite producing
slightly less during the year compared to 2018, continued
efficiencies, our low cost base and an increased average gold sales
price of $1,410 per ounce meant that revenues and profits again
increased. We look to continue our consistency in production and
our guidance for 2020 is between 75,000 and 80,000 gold equivalent
ounces. Together with this year's increased metal prices, our
excellent financial performance is set to continue.
The Company is now very focused on growing its business by both
leveraging its presence in Azerbaijan and deploying its reliable
cash flow elsewhere. In Azerbaijan, there are two parts to our
strategy: to increase production from our existing concessions and
to obtain new concessions. We have reported extensively on our
exploration programme at Gedabek and elsewhere. Our efforts are
starting to yield results and have already led to new discoveries.
To bring these discoveries into production takes time and we have
announced our expected timelines. The original Gedabek discovery
within the production sharing agreement currently extends to March
2022, but it can be extended for a further 10 years and we have
already started the formalities for this extension. The Company
expects this renewal to be routine and in accordance with the
existing agreement. We continue to operate the Gedabek mine on the
basis that an extension is forthcoming.
The second part of our expansion strategy in Azerbaijan is to
extend our existing concessions. We have had discussions with the
Government of Azerbaijan who appear to be well disposed to granting
us further exploration areas. We have also begun the legal work to
determine how any new concessions can be incorporated into our
existing production sharing arrangement. Although the COVID-19
pandemic has slowed these discussions throughout the first half of
2020, they have been wide-ranging and our relationship with the
Government of Azerbaijan remains strong. We are working together to
maximise the benefit of Azerbaijan's abundant natural resources for
both parties.
We were required to acknowledge publicly in August 2019 that the
Government of Azerbaijan had announced it had appointed advisors
with regard to a possible transaction with Anglo Asian Mining.
There have been no significant subsequent events requiring further
announcements by us. Nevertheless, I can assure shareholders that
it is the Company's understanding that the Government of Azerbaijan
has no intention to nationalise, purchase or otherwise take control
of Anglo Asian Mining or its assets in Azerbaijan.
The other pillar of our overall business strategy is to
diversify and pursue opportunities outside Azerbaijan that
complement our existing operations and where synergies exist. This
is not an easy task. Suitable opportunities of the right size in
good jurisdictions are rare and the landscape is very competitive.
However, the Company has been actively investigating several
opportunities and negotiations are at an advanced stage for one
potential joint venture. I look forward to making further
announcements about this shortly when the negotiations are
concluded.
The Company has seen substantial growth over the past few years
and I am confident that this will continue into the future. The
COVID-19 pandemic has provided challenges, and as we prioritise the
health and safety of all staff, the Company's financially robust
position means we are well positioned to continue to deliver and
develop, in spite of the current health emergency.
Finally, I would like to take this opportunity to thank my
fellow board members, our management team and our employees for
their hard work and dedication through these extraordinary times
and our shareholders for their continued support and
encouragement.
With kind regards
Reza Vaziri
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 until the release of this
announcement.
**S**
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
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Soltan Tagiev SP Angel Corporate Finance Tel + 44 (0) 20 3470
LLP 0470
Nominated Adviser and Broker
------------------------------ ----------------------
Camilla Horsfall Blytheweigh Financial Tel: + 44(0) 20 7138
3224
------------------------------ ----------------------
Megan Ray Blytheweigh Financial Tel: + 44(0) 20 7138
3224
------------------------------ ----------------------
Notes:
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 has a 1,962 square
kilometre portfolio, assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement
modelled on the Azeri oil industry.
The Company's main operating location is the Gedabek contract
area ("Gedabek") which is a 300 square kilometre area in the Lesser
Caucasus mountains in western Azerbaijan. The Company developed
Azerbaijan's first operating gold/copper/silver mine at Gedabek
which commenced gold production in May 2009. Mining at Gedabek was
initially from its main open pit which is an open cast mine with a
series of interconnected pits. The Company also operates the high
grade Gadir underground mine which is co-located at the Gedabek
site. In September 2017, production commenced at the Ugur open pit
mine, a newly discovered gold ore deposit at Gedabek. The Company
has a second underground mine, Gosha, which is 50 kilometres from
Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek
plant.
The Company produced 81,399 gold equivalent ounces ("GEOs") for
the year ended 31 December 2019. Gedabek is a polymetallic ore
deposit that has gold together with significant concentrations of
copper in the main open pit mine, and an oxide gold-rich zone at
Ugur. The Company therefore employs a series of flexible processing
routes to optimise metal recoveries and efficiencies. The Company
produces gold doré through agitation and heap leaching operations,
copper concentrate from its Sulphidisation, Acidification,
Recycling, and Thickening (SART) plant and also a copper and
precious metal concentrate from its flotation plant.
The Company has a production target for the year to 31 December
2020 of 65,000 ounces to 67,000 ounces of gold and 2,200 tonnes to
2,400 tonnes of copper. This total production target expressed as
gold equivalent ounces ("GEOs") at budgeted metal prices is between
75,000 GEOs and 80,000 GEOS.
Anglo Asian is also actively seeking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties elsewhere in order to fulfil its
expansion ambitions and become a mid-tier gold and copper metal
production company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
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