Thursday, July 24, 2014

Anglo Asian Mining’s production costs to tumble

Friday, July 12th, 2013

Anglo Asian’s (LON:AAZ) new agitation leaching plant, allied to more copper sales, are set to slash costs per ounce at its Gedabek mine this year.

Reza Vaziri, Anglo Asian’s chief executive, said that with the additional copper credits, costs per gold ounce could fall to between US$450 – 500 for the full year, from US$668 in 2012.

“This would be a significant milestone in Gedabek’s development as a low-cost gold producer in Azerbaijan,” he added.

The new plant has operated at 67 hours tonnes per hour since commissioning last month, producing 3,035 ounces of gold, but this will ramp up to 100 tonnes of ore per hour over the rest of the year.

The production target for the second half is 42,500 ounces, to make 60,000 ounces (oz) total gold production for the full year.

Output in the three months to June at Gedabek totalled 8,912oz, with gold sales of 5,505oz at an average price of US$1,438per oz. An additional 5,620oz of gold was shipped in the first week of July.

A further 1,040 wet metric tonnes (wmt) of copper concentrate was sold to Glencore during the quarter while Anglo Asian has signed an off-take deal with Seagate for ongoing sales.

Anglo Asian chief executive Reza Vaziri said, “During the quarter we were delighted to announce the successful commissioning of our new agitation leaching plant at Gedabek.

In addition, he said, the copper concentrate sales would increase profitability for the second half of the year.

Net debt was US$47mln at the half-year end.

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