Next year’s plan for gold production in Azerbaijan revealed

Business Materials 22 November 2015 13:49 (UTC +04:00)

Baku, Azerbaijan, Nov.22
By Azad Hasanli - Trend:

Anglo-Asian Mining PLC (ААМ) company plans to produce 80,000 ounces of gold in Azerbaijan in 2016, the company's director general Reza Vaziri told Trend.

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 south-west of Azerbaijan: 'Gadabay', 'Ordubad', 'Gosha Bulag', 'Gizil Bulag', 'Vejnali' and 'Soyutlu'.

Vaziri noted that the company plans to produce around 74,000-75,000 ounces of gold in 2015.

ААМ doesn't expect to produce more than the abovementioned volume in 2015, as the development of Gadabay field is quite difficult, he added.

Meanwhile, Vaziri said that if the gold production remains at the previous level by late 2015 and its price on the global market doesn't change, the company expects to get $2-$2.5 million worth profit in 2015.

"Otherwise we can end this year with losses," he said. "But if there are no serious changes, we expect to get $16 million worth net profit in 2016."

AAM's revenues in the first half of 2015 stood at $41.8 million, or 27.8 percent more than in the same period of 2014.

During the reporting period, its gross profit totaled $1.9 million, whereas the company suffered $0.8 million worth loss in Jan.-June 2014.

The company produced 54,103 ounces of gold, 634 tons of copper with SART method and 10,916 ounces of silver in Jan.-Sept. 2015.

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.