Azerbaijan decreases gold production forecast for 2014

Business Materials 21 November 2014 15:15 (UTC +04:00)

Baku, Azerbaijan, Nov.21

By Azad Hasanli - Trend:

Anglo-Asian Mining PLC, a gold producer in Azerbaijan, has decreased the forecast for the extraction of gold to 60,000 ounces in 2014, said a statement released Nov.21 at the company's website.

Previously, the company planned to bring the total volume of gold production to 62,000 ounces and copper by SART up to 750 metric tons before the end of 2014.

"Reduction of the forecasts is due to the fact that since early November 2014, the level of gold production was lower than the expected one due to the lower bandwidth of the agitation leaching rig," said the statement.

As a result of lower forecasts and the recent decline in gold prices, the AAM Board of Directors expects that the company's loss will be significantly higher than the market's expectations after taxation by the end of 2014.

The company produced 16,178 ounces of gold from the mines Gadabay and Gosha in the third quarter of 2014, which is 2.8 percent more than in the second quarter. For comparison, in the second quarter of 2014, AAM produced 15,736 ounces, and in the first quarter - 11,318 ounces of gold.

The company sold 13,797 ounces of gold at an average price of $1,281 per ounce during the reporting period. For comparison, in the second quarter of 2014, the figure was 13,142 ounces at an average price of $1,292 per ounce, and in the first quarter - 10,403 ounces at an average price of $1,303 per ounce.

The total gold sales amounted to 37,343 ounces at an average price of $1,291 per ounce for the first 9 months of 2014.

The company Anglo Asian Mining PLC has the right to develop six fields in the southwest of Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu based on the agreement of PSA type signed with Azerbaijani government August 1997.

The largest field developed by Anglo-Asian Mining is the Gadabay complex ore. The first gold and silver were mined there in May 2009 and the production of copper concentrate has been carried out since 2010.

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