Baku, Azerbaijan, Dec. 22
By Azad Hasanli - Trend:
Anglo-Asian Mining, gold producer in Azerbaijan, assesses which impact the decision by the Central Bank of Azerbaijan on the country's transition to a floating rate of the manat may have on the budget and the plans of the company, said the message of the Anglo-Asian Mining (AAM) published on its website.
The Central Bank of Azerbaijan switched to the floating rate of the national currency (manat) from Dec.21, 2015.
As a result, the exchange rate of the US dollar and euro to manat rose by 47.6 percent and 47.9 percent and stood at 1.55 manats and 1.685 manats, respectively.
"A significant part of the company's operating expenses are denominated in manats, but income - in dollars, so the transition to a floating exchange rate of manat will have a positive impact on the expenditures of the AAM," said the message.
During the first devaluation of the manat in February 2015 by almost 34 percent, the company was able to save about $6.5 million.
The company produced 54,103 ounces of gold, 634 tons of copper and 10,916 ounces of silver in Jan.-Sept. 2015. ААМ plans to produce 80,000 ounces of gold by late 2015 versus 75,000 ounces of gold in 2015.
Based on the production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan: 'Gadabay', 'Ordubad', 'Gosha Bulag', 'Gizil Bulag', 'Vejnali' and 'Soyutlu'.
AAM and Swiss Industrial Minerals SA signed an agreement in May 2014 on selling cooper concentrate produced at Gadabay field.
The contract signed for the period of three years envisages the purchase of copper concentrate by the Swiss company.
Industrial Minerals will purchase both dry and wet copper concentrate.
The gold produced at the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and stored in the government's account.