Revenues of Azerbaijan from gold sale increase
Baku, Azerbaijan, Sept. 23
By Azad Hasanli - Trend:
Revenues of the Anglo-Asian Mining PLC (AAM), gold producer in Azerbaijan, totaled $41.8 million in the first half of 2015, which is 27.8 percent more than in 2014, said the message of the AAM posted on the company's website.
"Revenue of $41.8 million was generated from the sale of Anglo Asian's share of its production of doré bars and copper concentrate in the six month period to June 30 2015," AAM Non-executive Chairman Khosrow Zamani said. "Doré sales were $40.1 million which comprised 33,295 ounces of gold and 1,281 ounces of silver at an average price of $1,204 and $17 per ounce respectively. Sales of copper concentrate were $1.7 million."
The gross profit of the company totaled $1.9 million in comparison with the gross loss of $0.8 million in the first half of 2014, according to the message.
"Cash generated from operations was $15.6 million which enabled us to fund capital expenditure of $9.1 million whilst continuing to service our borrowings and keep comfortably within our loan covenant," said the message.
"The low level of metal prices, together with a number of operational challenges, saw the company make a loss in 2014," Zamani said. "However, we have made significant progress in operational efficiency in the first half of 2015, which has improved the company's financial performance compared to 2014."
The production in the third quarter of 2015 promises to be similarly encouraging to the first half of 2015 with 50,779 ounces of gold produced from January 1 to September 13, 2015 which is ahead of our production schedule, the AAM representative said.
"In light of the robust production performance in the first half of 2015, the good production seen thus far in the third quarter of 2015 and the imminent start of production from the flotation plant at Gedabek, we remain on target to achieve a gold production target of between 70,000 to 75,000 ounces for 2015," he said.
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 southwest 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.