Assets of gold producer in Azerbaijan increases by nearly half during 2013

Business Materials 26 September 2013 20:39 (UTC +04:00)

Azerbaijan, Baku, Sept. 26 /Trend, A. Akhundov/

The Anglo-Asian Mining plc, gold producer company in Azerbaijan, completed the first half of 2013 with a gross profit of $9.3 million compared to $14.2 million in same period of the last year, a company's report said on Thursday.

Profit before tax amounted to $4.17 million, whereas in the first six months of 2012, it amounted to $10.46 million.

Over 2013, the company's revenues decreased by 8.25 percent and in January-July 2013 amounted to $27.6 million.

The revenues were mainly formed through gold sales. Some 14,229 ounces of gold was sold over six months at an average of $1,561 per ounce ($1,644 at the end of 2012).

Operating cash flows before movement in working capital amounted to $10.5 million ($15.5 million in the first half of 2012).

Over the half-year, the company's total assets increased by 13.66 percent, and over the year by 42.12 percent and amounted to $184.93 million at the end of the first half of 2013.

In the first half of 2013, the company produced 17,497 ounces of gold and 10,661 ounces of silver at the Gadabay mine.

The company has the right to explore and produce mineral resources in an area of about 2,000 square kilometres consisting of three contract areas (Gosha, Gadabay and Ordubad) under the terms of the Production Sharing Agreement (PSA) with the Government of Azerbaijan.

The resource base of the company exceeds 36 tons of gold, 292 tons of silver and 94,000 tons of copper. The largest field developed by Anglo Asian Mining, is the Gadabay Complex Mine. The first gold and silver were mined there in May 2009, and production of copper concentrate began in 2010.

The mined gold from the fields is sent to Switzerland for treatment. The ingots are returned to Azerbaijan and stored in the government's account.