Anglo Asian Mining (AIM: AAZ)

The AIM listed copper, gold, and silver producer in Azerbaijan, announced its interim results for the six-months ended 30 June 2022.

The company maintains FY 2022 Production Guidance at 54,000 to 58,000 gold equivalent ounces, and declared an interim Dividend for 2022 of US 4 cents per ordinary share.

Anglo Asian Mining Gedabek mine view, Azerbaijan.

Anglo Asian Mining	AIM: AAZ
Stage	Production, Exploration, development
Metals	Gold, copper, silver
Market cap	£82 m @ 71.5p
Location	Azerbaijan

RNS Number : 5142Z
Anglo Asian Mining PLC
15 September 2022
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining
15 September 2022

,Anglo Asian Mining plc

Interim Results for the six-months to 30 June 2022

FY 2022 Production Guidance at 54,000 to 58,000 gold equivalent ounces

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Interim Dividend for 2022 of US 4 cents per ordinary share

Anglo Asian Mining plc (“Anglo Asian”, the “Company” or the “Group”), the AIM listed copper, gold, and silver producer in Azerbaijan, is pleased to announce its interim results for the six-months ended 30 June 2022 (“H1 2022”).

The Group has achieved encouraging progress in a difficult external environment.

Anglo Asian is pleased to announce its full year 2022 (“FY 2022”) production guidance of 54,000
to 58,000 gold equivalent ounces (“GEOs”).

The Company also announces its 2022 interim dividend of US 4 cents per ordinary share payable on 3 November 2022 to shareholders on record on 30 September 2022.

Financial highlights

· Total revenues of $31.5 million (H1 2021: $43.5 million)
o Lower gold doré sales of 11,273 ounces (H1 2021: 19,582 ounces) partially
offset by higher average gold sales price of $1,901 per ounce (H1 2021:
$1,776 per ounce)
o Unsold gold inventory on 30 June 2022 of $13.0 million valued at the market
price on that date
· Profit before taxation of $5.7 million (H1 2021: $5.9 million)
o Profit before taxation includes a total charge of $1.6 million in respect of
Libero Copper & Gold Corporation (“Libero”) which became an associate
company of the Group in January 2022
· All-in sustaining cost (“AISC”) of gold production increased to $983 per ounce
(H1 2021: $848 per ounce)
o Total costs were broadly flat as higher electricity and material costs were
offset by lower cyanide usage but lower gold production resulted in a
higher AISC per ounce
· Free cash flow was a net outflow of $13.2 million (H1 2021: $0.4 million) due to
an increase in working capital of $17.2 million mainly due to unsold gold
inventory at 30 June 2022
· Cash of $21.2 million as at 30 June 2022 (31 December 2021: cash of $37.5
million) and the Company remains debt free
· 2022 interim dividend declared of US 4 cents per ordinary share
o Dividend modestly increases the pay-out in Sterling at current exchange
rates due to the depreciation in the value of the pound Sterling against the
US dollar

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Operational highlights

· Total production of 28,772 GEOs (H1 2021: 32,171 GEOs) due to lower gold
grades at Gedabek
o Gold production of 20,906 ounces (H1 2021: 24,247 ounces)
o Copper production of 1,283 tonnes (H1 2021: 1,333 tonnes)
o Silver production of 99,499 ounces (H1 2021: 78,980 ounces)
· Gold bullion sales of 11,273 ounces (H1 2021: 19,582 ounces) completed at
an average price of $1,901 per ounce (H1 2021: $1,776 per ounce)
· Excellent progress made at Zafar towards commencing mining next year
o Final JORC ore resource published in March 2022
o Location of portal established and acquisition of the mining fleet underway
o First new centrifugal flotation cell for zinc production line under test
· Good progress at Vejnaly and Gosha
o Mine camp now established at Vejnaly and activity ramping up
o Underground tunnelling towards new Hasan vein at Gosha nearing
completion

Anglo Asian CEO Reza Vaziri commented:

“I am pleased to report these interim results for 2022. The Company produced 28,722 gold equivalent ounces during the period, down slightly versus last year, although this was expected due to lower gold grades at Gedabek.

“We are pleased to announce our full year production guidance of 54,000 to 58,000 gold equivalent ounces.

“We are expecting a modest amount of production from Vejnaly and the Hasan vein at Gosha this year so anticipate an outcome at the upper end of the guidance.

“I am also very pleased to announce an interim dividend of four United States cents per share. For the majority of our shareholders, who are based in the United Kingdom, this will be an increase in their Sterling interim dividend at current exchange rates.

“We made significant progress in the development of our portfolio with excellent progress made at Zafar, Vejnaly and Hasan, all of which will enter production in the next 3 to 12 months. This will ease our reliance on production from Gedabek as they are set to produce meaningful quantities of ore next year.

“This is an exciting time for Anglo Asian Mining, with the acquisition of our three new contract areas. These will transform our business and are substantial drivers for growth. We are in the process of further developing our growth strategy which I look forward to publishing later in 2022.

For brevity, this summary has been redacted, to read the full news release, please click HERE

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