Baku, Azerbaijan, Oct. 13
By Azad Hasanli – Trend:
Net debt of Anglo Asian Mining PLC (AAM), producer of gold in Azerbaijan, to the country’s PASHA Bank OJSC increased by $1 million in the 3Q2016, says the AAM report posted on its website Oct. 13.
The AAM’s debt to PASHA Bank increased from $3.16 million to $4.2 million during the reporting period, says the report.
PASHA Bank issued the first loan worth $2.5 million for the company in 2014. The funds were used to finance the letter of credit on the construction of a flotation plant. In 2015, the bank allocated additional $1 million for the AAM. Moreover, the AAM obtained a PASHA Bank loan worth $3 million for the purchase of cyanide in 2014.
The AAM’s net debt was $37.7 million as of Sept. 30, 2016 ($40.8 million as of June 30, 2016), a reduction of $11.3 million since Dec. 31, 2015.
The company’s debt to the Amsterdam Trade Bank is $19.7 million, International Bank of Azerbaijan - $8.7 million, Atlas Capco company - $1 million, Yapi Kredi - $0.9 million, PASHA Bank - $4.2 million, AAM CEO Reza Vaziri – $3.9 million.
The AAM produced 49,874 ounces of gold, 1,363 tons of copper and 114,915 ounces of silver in January-September 2016.
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.