Azerbaijani company increases gold production

Business Materials 16 January 2014 21:57 (UTC +04:00)

Baku, Azerbaijan, Jan. 16

By Abbas Akhundov - Trend:

Anglo-Asian Mining PLC (AAM), gold producer in Azerbaijan, produced 52,068 ounces of gold in 2013 from the Gedabek mine complex, according to a message posted on the company's website.

In 2012 AAM produced 50,215 ounces of gold.

In 2013, the company sold 46,076 ounces of gold, while in 2012 the gold sales totalled 42,743 ounces. The company sold gold in 2012 at an average price of $1,660 per ounce, but the last year the gold was sold at a price of $1,387 per ounce.

"Whilst we increased gold production at Gedabek in 2013 to 52,068 ounces from 50,025 ounces in 2012, naturally we are disappointed to have missed our production target for the year due to unexpected weather conditions and processing issues in the fourth quarter of 2013, especially given the successful commissioning of our new Agitation Leaching Plant in June 2013. This, in tandem with the lower gold price, in particular during the second half, will see the cash cost per ounce increase and profitability for 2013 significantly reduced from fiscal year 2012," the message quoted Anglo Asian CEO, Reza Vaziri as saying.

Anglo Asian Mining has the right of exploration and production of mineral resources in an area of about 2000 square kilometres consisting of three contract areas of Gosh, Gedabey and Ordubad under the terms of the Production Sharing Agreement (PSA) with the government of Azerbaijan.

The resource base of the company exceeds 36 tonnes of gold, 292 tonnes of silver and 94.000 tonnes 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 the production of copper concentrate has been working since 2010.

Translated by E.A.