Q1 2024 Production and Operations Review
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Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer focused in Azerbaijan, provides the following production, sales and operational review for its Gedabek contract area ("Gedabek") in western Azerbaijan for the three months to 31 March 2024 ("Q1 2024", or the "Quarter").
Production was significantly reduced during the Quarter due to operations remaining partially shut down as the Company awaits permission to raise its tailings dam wall, which it expects to receive shortly. Gold production from heap leaching and copper production from SART continued throughout the Quarter.
Q1 2024 Production update
- Total production of 2,548 gold equivalent ounces ("GEOs") (Q1 2023: 10,969 GEOs)
o Copper production of 54 tonnes (Q1 2023: 847 tonnes)
o Gold production of 2,252 ounces (Q1 2023: 6,741 ounces)
o Silver production of 6,410 ounces (Q1 2023: 22,566 ounces)
Q1 2024 Sales and cash update
- Total gold bullion sales of 3,925 ounces at an average of $2,080 per ounce (Q1 2023: 5,719 ounces at an average of $1,895 per ounce)
- The Group has maintained a strong focus on cash and strict cost control, with a net debt position of $10.9 million at 31 March 2024 (31 December 2023: $10.2 million)
- Net cash outflow in Q1 2024 of only $0.7 million due to sale of opening inventory along with strong cost control
- Inventory valued at $2.0 million at 31 March 2024 (31 December 2023: 2,506 ounces of gold valued at $6.9 million and copper concentrate valued at $0.2 million)
Outlook
- The Group submitted all necessary documents by 14 March 2024 to the Government of Azerbaijan to raise the tailings dam wall and is now awaiting receipt of the permission
- Receipt of the permission will enable the resumption of normalised production at Gedabek and, at this stage, the Company will accordingly issue guidance for the full year 2024
- The Company continues to prioritise the progression of its development portfolio with first production from the new Gilar mine now planned for Q4 2024
Anglo Asian CEO Reza Vaziri commented:
"Amid what has been a challenging time for the Company, we have made important operational progress and our portfolio of development assets is progressing in line with our expectations. We await Government permission to raise our tailings dam wall, a necessary step for resuming normal production levels and our ability to issue production guidance for the year. We anticipate the permit will be issued shortly and this will enable us to take advantage of the current strong metal prices for the benefit of all our stakeholders".
Note that all references to "$" are to United States dollars.
Q1 2024 Production overview
Gold production of 2,252 ounces (Q1 2023: 6,741 ounces):
o 2,245 ounces contained within gold doré
o 7 ounces from sulphidisation, acidification, recycling and thickening ("SART") processing
- Copper production of 54 tonnes (Q1 2023: 847 tonnes) from SART processing
- Silver production totalled 6,410 ounces (Q1 2023: 22,566 ounces):
o 1,517 ounces contained within gold doré
o 4,893 ounces from SART processing
Q1 2024 Sales overview
- Total gold bullion sales of 3,925 ounces at an average of $2,080 per ounce (Q1 2023: 5,719 ounces at an average of $1,895 per ounce)
- Total concentrate sales of 71 dry metric tonnes ("dmt") with a value of $0.3 million (Q1 2023: 1,147 dmt with a value of $2.7 million)
- 800 ounces of gold bullion was sold for $2,006.32 per ounce under the Group's hedging program on 31 January 2024 generating lower revenue of $27,000 compared to the closing spot price on the day
Q1 2024 Financials overview
- Cash of $9.8 million ($10.5 million at 31 December 2023)
- Debt unchanged at $20.7 million ($20.7 million at 31 December 2023)
- Net debt of $10.9 million ($10.2 million at 31 December 2023)
- Unsold gold doré and copper concentrate inventory of $2.0 million
The Company mined the following ore during FY 2023 and Q1 2024:
| 12 months to 31 December 2023 | 3 months to 31 March 2024 | |||
|---|---|---|---|---|
| Mine | Ore mined | Average gold grade | Ore mined | Average gold grade |
| (tonnes) | (g/t) | (tonnes) | (g/t) | |
| Open pit | 1,180,695 | 0.38 | 186,122 | 0.81 |
| Gadir - u/g | 109,320 | 1.64 | 50,964 | 2.18 |
| Gedabek - u/g | - | - | - | - |
| Total | 1,290,015 | 0.49 | 237,086 | 1.10 |
The Company processed the following amounts and grades of ore by leaching for FY 2023 and Q1 2024:
| Quarter ended | Ore processed | Gold grade of ore processed | ||||
|---|---|---|---|---|---|---|
| Heap leach pad crushed ore (tonnes) | Heap leach pad ROM ore (tonnes) | Agitation leaching plant* (tonnes) | Heap leach pad crushed ore (g/t) | Heap leach pad ROM ore (g/t) | Agitation leaching plant* (g/t) | |
| 31 March 2023 | 94,518 | 196,595 | 62,006 | 0.74 | 0.49 | 1.3 |
| 30 June 2023 | 56,522 | 202,788 | 105,213 | 0.75 | 0.46 | 1.4 |
| 30 September 2023 | 25,690 | 34,621 | - | 0.83 | 0.45 | - |
| 31 December 2023 | - | - | - | - | - | - |
| FY 2023 | 176,730 | 434,004 | 167,219 | 0.76 | 0.48 | 1.4 |
| 31 March 2024 | 120,528 | - | - | 0.68 | - | - |
* includes previously heap leached ore.
The Company processed the following amounts of ore and contained metal by flotation for FY 2023 and Q1 2024:
| Quarter ended | Ore processed | Gold content | Silver content | Copper content |
|---|---|---|---|---|
| (tonnes) | (ounces) | (ounces) | (tonnes) | |
| 31 March 2023 | 192,516 | 1,487 | 19,787 | 1,133 |
| 30 June 2023 | 190,593 | 1,033 | 10,380 | 1,191 |
| 30 September 2023 | 62,369 | 478 | 4,358 | 363 |
| 31 December 2023 | - | - | - | - |
| FY 2023 | 445,478 | 2,998 | 34,525 | 2,687 |
| 31 March 2024 | - | - | - | - |
The following table summarises gold doré production and sales at Gedabek for FY 2023 and Q1 2024:
| Quarter ended | Gold produced* (ounces) | Silver produced* (ounces) | Gold sales** (ounces) | Gold Sales price ($/ounce) |
|---|---|---|---|---|
| 31 March 2023 | 5,965 | 2,841 | 5,719 | 1,895 |
| 30 June 2023 | 7,375 | 3,593 | 4,787 | 1,992 |
| 30 September 2023 | 4,001 | 1,488 | 2,900 | 1,949 |
| 31 December 2023 | 2,975 | 1,610 | 2,416 | 2,004 |
| FY 2023 | 20,316 | 9,532 | 15,822 | 1,951 |
| 31 March 2024 | 2,245 | 1,517 | 3,925 | 2,080 |
Note
* including Government of Azerbaijan's share
** excluding Government of Azerbaijan's share
The gold and silver production from agitation and heap leaching for FY 2023 and Q1 2024 is as follows:
| Quarter ended | Gold | Silver | ||||
|---|---|---|---|---|---|---|
| Agitation leaching (ounces) | Heap leaching (ounces) | Total (ounces) | Agitation leaching (ounces) | Heap leaching (ounces) | Total (ounces) | |
| 31 March 2023 | 2,105 | 3,860 | 5,965 | 1,077 | 1,764 | 2,841 |
| 30 June 2023 | 3,463 | 3,912 | 7,375 | 1,735 | 1,858 | 3,593 |
| 30 Sept 2023 | - | 4,001 | 4,001 | - | 1,488 | 1,488 |
| 31 Dec 2023 | - | 2,975 | 2,975 | - | 1,610 | 1,610 |
| FY 2023 | 5,568 | 14,748 | 20,316 | 2,812 | 6,720 | 9,532 |
| 31 March 2024 | - | 2,245 | 2,245 | - | 1,517 | 1,517 |
The following table summarises copper concentrate production from both the Company's SART and flotation plants at Gedabek for FY 2023 and Q1 2024:
| Concentrate | Copper | Gold | Silver | |
|---|---|---|---|---|
| production* | content* | content* | content* | |
| (dmt) | (tonnes) | (ounces) | (ounces) | |
| 2023 | ||||
| Quarter ended 31 March | ||||
| SART processing | 364 | 191 | 26 | 8,750 |
| Flotation | 4,544 | 665 | 762 | 11,095 |
| Total | 4,908 | 856 | 788 | 19,845 |
| Quarter ended 30 June | ||||
| SART processing | 272 | 145 | 16 | 10,316 |
| Flotation | 5,613 | 869 | 479 | 8,101 |
| Total | 5,885 | 1,014 | 495 | 18,417 |
| Quarter ended 30 September | ||||
| SART processing | 85 | 43 | 4 | 2,194 |
| Flotation | 1,316 | 207 | 151 | 1,974 |
| Total | 1,401 | 250 | 155 | 4,168 |
| Quarter ended 31 December | ||||
| SART processing | 29 | 18 | 4 | 1,264 |
| Flotation | - | - | - | - |
| Total | 29 | 18 | 4 | 1,264 |
| 2024 | ||||
| Quarter ended 31 March | ||||
| SART processing | 89 | 54 | 7 | 4,893 |
| Flotation | 0 | - | - | - |
| Total | 89 | 54 | 7 | 4,893 |
Note
* including Government of Azerbaijan's share.
The following table summarises total copper concentrate production and sales for FY 2023 and Q1 2024. Note that sales of concentrates are initially recorded at provisional amounts until agreement of final assay:
| Concentrate | Copper | Gold | Silver | Concentrate | Concentrate | |
|---|---|---|---|---|---|---|
| production* | content* | content* | content* | sales** | sales** | |
| (dmt) | (tonnes) | (ounces) | (ounces) | (dmt) | ($000) | |
| Quarter ended | ||||||
| 31 March 2023 | 4,908 | 856 | 788 | 19,845 | 1,147 | 2,743 |
| 30 June 2023 | 5,885 | 1,014 | 495 | 18,417 | 5,501 | 7,678 |
| 30 September 2023 | 1,401 | 250 | 155 | 4,168 | 2,358 | 3,066 |
| 31 December 2023 | 29 | 18 | 4 | 1,264 | 2,186 | 2,306 |
| FY 2023 | 12,223 | 2,138 | 1,442 | 43,694 | 11,192 | 15,793 |
| 31 March 2024 | 89 | 54 | 7 | 4, 893 | 71 | 295 |
* including Government of Azerbaijan's share
** excludes Government of Azerbaijan's share
Q1 2024 Financial review
The Company's net debt increased from $10.2 million at 31 December 2023 to $10.9 million at 31 March 2024 as follows:
| $million | $million |
|---|---|
| 31 December 2023 | (10.2) |
| Revenue | 8.6 |
| VAT refund | 1.3 |
| Interest income | 0.2 |
| Operating costs | (9.6) |
| Capital expenditure | (0.7) |
| Debt servicing | (0.5) |
| Outflow in Q1 2024 | (0.7) |
| 31 March 2024 | (10.9) |
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