Anglo Asian Mining sees rise in share price
Baku, Azerbaijan, Jan. 4
By Anvar Mammadov – Trend:
Price of shares of Anglo Asian Mining (AAM), a producer of gold, copper and silver in Azerbaijan, rose by 33.3 percent during 2017.
The cost of an AAM share on the London Stock Exchange was 32 pence on December 29, while as of early January 2018, the cost of an AAM share was 24 pence.
In early 2017, the cost of AAM shares fluctuated around 20 pence per one share.
Later, starting from mid-February, prices began to decline, reaching its annual minimum of 15.1525 pence on April 26, 2017.
AAM shares demonstrated insignificant growth from May to July 2017, but the prices started to increase since mid-July.
The maximum price of AAM shares was observed on October 16. The cost of one share was 34.75 pence.
Rise in the cost of AAM shares in 2017 took place against the backdrop of an increase in the value of gold.
Thus, the price of one ounce of gold was $1,313.3 at the end of 2017, while in early 2017, the price of one ounce of gold was $1,214.5. The price of gold increased by 8.1 percent during 2017.
The increase in the value of AAM shares is also related to the fact that the company 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 started producing gold at the new Ugur field in 3Q17 and planned to produce 64,000-72,000 ounces of gold until the end of the year.
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.