Baku, Azerbaijan, Oct. 20
By Azad Hasanli – Trend:
Shares of Anglo Asian Mining PLC (AAM), a producer of gold, copper and silver in Azerbaijan, renewed the four-year maximum.
The cost of an AAM share on the London Stock Exchange was 33.5 pence on October 19. A few days ago, on October 16, AAM shares were quoted at a price of 34.75 pence. Such prices for the company’s shares were observed in April 2013 – 36.5 pence.
In October, after a small September recession, AAM shares again continued their growth. During the year [in the period from October 19, 2016 to October 19, 2017], the company’s shares rose by 81.1 percent.
Shares of Anglo Asian Mining are growing amid general increase in the value of gold.
Earlier, Anastasia Redko, an analyst of the Russian consulting company Sogra, told Trend that the current gold prices [around $1,200-1,300] are attractive for mining business.
The increase in the value of AAM shares is also related to the fact that the company recently systematically optimizes production and this allows it to increase its profitability.
For example, the company managed to cut production cost of one ounce of gold by almost 20 percent in 2016. The company also reduced annual costs by $2 million by connecting the infrastructure at the Gadabay field to the national electricity supply system.
The AAM plans to produce 64-72,000 ounces of gold.
Based on a production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in southwest 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 then delivered to Azerbaijan and stored in the government's account.