UK

Anglo Asian Mining boosts cash balance in second quarter, retains 2020 guidance

Anglo Asian Mining PLC (LON:AAZ) has reported that it raked in an extra US$3.2mln in cash in the second quarter of 2020.

In the three months to June 30, 2020, the Azerbaijan-focused miner said its cash balance stood at US$29.2mln at the end of the period, while gold production in the quarter had come in at 12,048 ounces (oz) compared to 17,149 oz in the prior year.

READ: Anglo Asian Mining says exploration success has brought production target of 100,000 ounces into its sights

Anglo Asian said the lower figure was due to lower ore grades processed from its Gedabek open pit operation, which had been its efficiency impacted by the coronavirus pandemic, and less ore from the Gadir underground mine.

However, gold bullion sales in the period had benefitted from higher prices of the yellow metal, with Anglo Asian selling 12,743 oz at an average price of US$1,713 per oz compared to 13,467 oz at US$1,332 in 2019. Copper production, meanwhile, increased to 648 tonnes from 448 in 2019, while silver output totalled 23,884 oz compared to 33,058 oz a year ago.

Looking ahead, the firm reiterated its full-year production guidance of 75,000-80,000 gold equivalent ounces and over US$100mln in revenues at current metal prices, adding that it has taken various measures to increase production in the second half of the year.

A new portal has been opened with a decline currently being constructed to allow underground mining of high-grade ore beneath the Gedabek open pit to start in the fourth quarter.

Anglo Asian also said previously leached ore with “high residual gold grades” is being recovered from old heaps and reprocessed by agitation leaching, while a new JORC resources aRead More – Source