Share value of Anglo Asian Mining PLC hits seven-year high
Baku, Azerbaijan, Sept. 19
By Azad Hasanli – Trend:
The share value of Anglo Asian Mining PLC (AAM), a producer of gold, copper and silver in Azerbaijan, has reached a seven-year high, according to a report on trades at the London Stock Exchange.
As of 13:00 (GMT +4) on Sept. 19, the value of one share of the company was 58.7 pence. AAM shares began to go up in value after the news was published that the company will carry out airborne geophysical surveys of a contract area in Azerbaijan’s Gadabay District in order to identify new gold and copper deposits.
The information was published on Sept. 13 and starting from that date, the value of the company’s shares soared by one third. The growth was also spurred by the publication of information on the Gadabay field's gold reserves of over one million ounces, which will ensure the life cycle of the field for about 5-6 years.
Over the past two years, the company has been working to optimize production and lower production costs. This year, AAM also reduced almost all of its credit debt to $2.9 million.
Due to the increase in gold production, the company’s revenues in the first half of this year amounted to $40 million, which is 34 percent more than in the first half of 2017.
In January-June 2018, AAM produced 33,255 ounces of gold (a 43.2 percent increase), 587 tons of copper (a decrease by 2.2 times) and 84,785 ounces of silver (a 0.4 percent decrease).
Anglo Asian Mining PLC has a broad portfolio of production and exploration assets in Azerbaijan.
AAM and Swiss Industrial Minerals SA signed an agreement in May 2014 on selling cooper concentrate produced at the Gadabay field 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 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.
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