Anglo Asian Mining PLC (AIM:AAZ) is back in the black after the company reported a pre-tax profit of $3.5 million for the six months ended 30 June 2017. The turnaround was driven by a doubling of copper production and a surge in gold sales. The London-listed company, which operates the Gedabek gold, copper and silver mine in western Azerbaijan, reported a pre-tax loss of $7.7 million for the same period in 2016.
Revenues for the six-month period rose to $25.5 million, up from $18.7 million in the same period last year, driven by a surge in gold sales, which rose to 6,934 ounces from 4,979 ounces in the previous year. Copper sales also rose to 1,939 tonnes from 1,919 tonnes last year. The company said that the increase in gold sales was due to higher production from the open pit and higher grade ore being mined from the underground mine.
The company also reported a significant increase in copper production, with output doubling to 1,939 tonnes from 968 tonnes in the same period last year. The increase in copper production was due to the successful commissioning of a new agitated leaching plant in April 2017. The plant is expected to increase copper production to 3,000 tonnes by the end of 2017.
The company also reported a significant reduction in costs, with cash costs per ounce of gold sold falling to $541 from $694 in the same period last year. Commenting on the results, Anglo Asian Mining’s Chief Executive Officer, Reza Vaziri, said: “We are very pleased with the progress made in the first half of 2017, with a significant increase in gold and copper production and a reduction in costs. The successful commissioning of our new agitated leaching plant has been a major driver of the increase in copper production, and we are on track to reach our target of 3,000 tonnes of copper by the end of the year.”
Looking ahead, Vaziri said the company was well positioned to capitalise on the positive outlook for gold and copper prices. “We are confident that our strategic focus on increasing production, reducing costs and expanding our operational footprint will continue to deliver value for our shareholders,” he said.
The company is also planning to expand its operations in Azerbaijan, with plans to develop a new open-pit copper mine at Gedabek. The new mine is expected to produce up to 10,000 tonnes of copper a year. Anglo Asian Mining is a gold, copper and silver producer with a portfolio of assets in Azerbaijan. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 index.
