Anglo Asian Mining post an improvement in production during Q3
(Kitco News) -
Anglo Asian Mining confirmed an improvement in production during Q3. This equals to an improvement in gold equivalent ounces up 25% on the tally for the preceding three months.
The company has a market cap of £133.04mln and is focus on gold, silver and copper. Year to date the company is 28.25% lower but since the share price hit a low of 26p in March it has recovered to reach £1.10p today. The miner is focused on the Azerbaijan region and it produced 18,451 GEO in the three months ended September 30, 2020, versus 14,819 GEO in the second quarter of the year.
It saw production for the first nine months of the year reach 50,702 GEO, against 60,122 GEO in the comparative period of 2019. Interestingly, the firm sold 6,335 ounces sold in early October at average price of $1,910 per ounce generating proceeds of $12.1 million.
On the negative side, the company have noted, FY 2020 production guidance is currently under review following some minor delays in the underground development arising from the effects of the Azeri and Armenian conflict due to the conscription of a number of engineering staff and some recently encountered temporary delays due to underground rock faulting. This conflict has been going on for months now but if there is to be a ceasefire then it could perk up the share price.
The companies CEO commented saying: "I am very pleased with the better performance so far in the second half of this year with production increasing by twenty-seven percent to 18,190 gold equivalent ounces compared to the previous quarter. The actions we took to improve production in the first half of the year are now taking effect. We will soon start underground mining below the Gedabek open pit which is expected to lead to a further improvement in performance."
Below is the weekly chart and although the price has suffered from a deep retracement the price is still in an uptrend. The 100p level could be a good psychological support and it will be interesting to see what happens to the share price in the next few sessions.