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Anglo Asian reports record revenue as production in Azerbaijan slides in 2020

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(Kitco News) - Anglo Asian Mining (AIM:AAZ) announced Thursday that in 2020, the company produced 67,249 gold equivalent ounces ("GEOs") at its Gedabek gold-copper-silver mine in Azerbaijan, a 17% decline compared to 2019 (81,399 GEOs).

Gold production for 2020 was 56,864 ounces (2019: 70,098 ounces), copper production for 2020 increased by 17% y-o-y to 2,591 tonnes (2019: 2,210 tonnes), and silver production for 2020 was 122,962 ounces (2019: 159,356 ounces). The all-in sustaining cost of gold produced increased to $702 per ounce compared to $591 per ounce in 2019 due to the lower production.

The company said it generated record total revenues in 2020 of $102.1 million, representing an 11% year-on-year increase (2019: $92.1 million). Revenues were boosted by increased metal prices, with gold sales averaging $1,777 per ounce over the year, compared to $1,410 per ounce in 2019.

Profit before taxation for 2020 was $35.7 million (2019: $30.1 million), representing a y-o-y increase of 19 per cent. The company posted strong operating cash flow before movements in working capital of $52.8 million (2019: $50.5 million) driven by increased metal prices and the low cost of production.

The company has also announced a final dividend for the year ended 31 December 2020 of US 3.5 cents per share, giving a total dividend for 2020 of US 9.5 cents per share. Anglo Asian said that its total production target for 2021 between 64,000 and 72,000 GEOs.

Anglo Asian Mining is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The company has a 1,962 square kilometre portfolio at its active Gedabek, Gosha and Ordubad contract areas. The company also has three recently restored contract areas in the formerly Occupied Territories and Karabakh under its PSA and which the company has started to preliminary evaluate.

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