BAKU, Azerbaijan, June 19. Anglo Asian Mining PLC, the AIM listed gold, copper and silver producer focused in Azerbaijan, has announced that it has taken a forward sale position for 4,600 ounces of gold bullion over a 7 month period from June through December 2023, Trend reports.
This move supports the company's medium-term growth strategy, culminating in its transition to a mid-tier copper producer, and is prudent in light of forthcoming capital expenditure requirements.
"Monthly forward sales of gold bullion have been made equivalent to approximately 25 to 30 percent. of each month's budgeted gold doré production. The contracts mature at the end of each respective month and a total of 4,600 ounces of gold bullion has been forward sold. The forward sales have been made at prices between $1,949.75 to $1,979.25 per ounce of gold. The spot price of gold at the time of contracting the forward sales was $1,947.50," said the company.
Back in April 2023, the company said it expects to increase the production of precious metals in Azerbaijan by up to 50 percent.
The expectations are to bring these figures up to 70,000-75,000 tons in gold equivalent and up to 15,500 tons in silver equivalent, the company had said.
From 2028, Anglo Asian Mining expects an increase in production in copper equivalent to 36,000 tons and 175,000 tons in gold equivalent. Production growth is also expected due to the discovery of four new deposits. Besides, the company is expected to produce up to 54,000 ounces in gold equivalent this year.
Anglo Asian Mining PLC in 2022 produced 57,618 gold equivalent ounces (GEOs), in line with the upper bound of the company's guidance. This was achieved despite a decrease in grade at the Gadabay mine - the company's main asset. The company's production forecast for 2023 stands at 50,000 and 54,000 GEOs.
Anglo Asian mainly exports gold bars produced in Azerbaijan to Switzerland. Meanwhile, copper is exported to Georgia, Uzbekistan, and Türkiye.