Gold production in Azerbaijan slightly decreases

Business Materials 14 July 2016 16:16 (UTC +04:00)

Baku, Azerbaijan, July 14

By Anvar Mammadov – Trend:

Anglo Asian Mining PLC (AAM), producer of gold in Azerbaijan, produced 33,837 ounces of gold in H1 2016, which is 5.8 percent less than in the same period of 2015, says the AAM report posted on its website July 14.

The company produced 35,938 ounces of gold in January-June 2015.

In total, AAM produced 71,670 ounces of gold in 2015, and it plans to produce 73,000-77,000 ounces of gold until the end of 2016, according to the report.

The AAM produced 19,665 ounces of gold in Q2 2016, which is 4.9 percent more than 18,745 ounces of gold produced in the same period of 2015.

The report also says the company sold 12,058 ounces of gold at an average price of $1,184 per ounce in January-March 2016, and 15,661 ounces of gold ($1,265 per ounce) in Q2 2016.

Copper production totaled 969 tons in H1 2016 in Azerbaijan, which is 2.3 times more than in January-June 2015 (418 tons), according to the report.

The AAM’s copper production through SART (sulphidization, acidification, recycling and thickening) totaled 195 tons in Q2 2016 (a decrease by 17.4 percent during the year).

During H1 2016, 1,988 dry metric tons of copper concentrate was produced. The volume contained 342 tons of copper and 1,735 ounces of gold, according to the report.

Silver production amounted to 90,782 ounces in H1 2016 - 34,342 ounces from this were produced in Q1 2016 and 56,440 ounces in Q2 2016, said the report, adding that the silver output increased by more than 14 times as compared to 6,477 ounces in January-June 2015.

The AAM’s net debt totaled $40.8 million as of June 30, 2016. Out of the net debt, $22.2 million was owed to Amsterdam Trade Bank, $11.5 million – to the International Bank of Azerbaijan, $1.5 million – to Atlas Copco, $1.4 million – to Yapikredi, $3.3 million – to PASHA Bank, $3.9 million – to the company’s CEO Reza Vaziri.

Anglo Asian Mining PLC is a gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan.

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.

The gold produced at the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and are stored in the government’s account.