Anglo Asian Mining, a British company operating gold deposits in Azerbaijan, has reported a decrease in gold production for the period of January-September 2023 compared to the same period last year. The company produced 28,686 thousand ounces of gold equivalent (GEO), a decrease of 33.4%. This includes 18,771 thousand ounces of gold (a 41.3% decrease), 2,111 thousand tons of copper (an 11.6% increase), and 50,272 thousand ounces of silver (a 65.2% decrease).
The Gedabek deposit contributed 17,348 thousand ounces of gold (a 41.3% decrease) and 7,924 thousand ounces of silver (a 64.2% decrease) to the company’s production.
On the global market, Anglo Asian Mining sold 13,406 thousand ounces of gold bars (a 37% decrease) at an average price of $1,949 per ounce during the January-September 2023 period. This is compared to an average price of $1,727 per ounce in the same period in 2022.
During the first nine months of this year, the company produced 12,194 thousand tons of copper concentrate, marking a 19.4% increase. Of this, 9,006 thousand tons were sold for $13,487 million, a 14.9% increase, according to Interfax.
Anglo Asian’s President and CEO, Reza Veziri, acknowledged the impact of an environmental inspection conducted by Micon at the Gedabek mine on the company’s performance. The inspection led to a two-month halt of the flotation and agitated leach plant, as well as the cessation of production at the Gedabek contract area in August. Veziri stated that the company is working with the government to address the identified areas for improvement and emphasized that the allegations of environmental pollution were found to be unfounded.
As of September 30, 2023, Anglo Asian Mining had $1.6 million in cash, compared to $9.6 million on June 30. Additionally, the company paid $4.6 million in final dividends for 2022 in the third quarter.
Anglo Asian Mining implemented a hedging program, selling 1,000 ounces of gold bars for $1,959 per ounce, resulting in additional revenue of $27,075 per ounce. In total, the company sold 2,900 ounces of gold bars in the third quarter. The company currently holds unsold stocks of precious metals worth $7 million, including gold and silver bars valued at $5.9 million, and copper concentrate worth $1.1 million.
Anglo Asian Mining conducts its precious metal production from the Gedabek and Gosha contract areas. The company plans to commence production from the Vejnali and Gilar deposits this year. Under the production-sharing agreement signed in 1997, Anglo Asian Mining holds the rights to develop eight contract areas in Azerbaijan, with the country’s share in the contract standing at 51%.
For 2023, the company forecasts a production range of 30,000 to 34,000 ounces in gold equivalent. Specifically, Anglo Asian Mining expects to produce 22,000 to 23,000 ounces of gold and 2,100 to 2,200 tons of copper.
According to the strategic growth plan for 2023-2028, the company aims to increase its production of precious metals in Azerbaijan. By 2028, the production is projected to reach 175,000 ounces GEO, marking a 3.2-3.5 times increase from 2023.