Anglo Asian production grows, cautions on GEO guidance

18th September 2019 By: Mariaan Webb - Creamer Media Deputy Editor Online

Azerbaijan copper/gold miner Anglo Asian produced 39 905 gold-equivalent ounces (GEOs) in the six months ended June 30, which is a 7% increase on the first half of 2018.

Gold production increased to 34 349 oz and copper production increased to 963 t, the Aim-listed company reported on Wednesday.

Revenue increased by $3.3-million to $43.3-million, owing to higher gold bullion and copper sales. Profit after tax increased to $6.6-million, from $5.1-million in the first half of 2018.

The all-in sustaining cost increased in the six months under review to $603/oz, which Anglo Asian said reflected a $2.7-million increase in cash costs, owing to mining a higher volume of ore.

Some of the additional ore mined has been stockpiled for use in 2020, which would reduce the mining costs next year.

Anglo Asian has a production target of between 82 000 and 86 000 GEOs for 2019, which was calculated using metal prices at the beginning of the year. However, the increase in the price of gold and decrease in the price of copper since had resulted in one tonne of copper decreasing in value from about 4.7 to 3.8 GEOs.

“We are on track to achieve our initial production target, but when translated into GEOs at actual metal prices, the 2019 forecast outcome is now around the bottom end of the guidance range,” chairperson Khosrow Zamani said in a statement.

Anglo Asian declared an interim dividend, in respect of the year ended December 2019, of 3.50c an ordinary share, which would be paid gross on October 31, 2019.