(Kitco News) - Azerbaijan-focused mining company Anglo Asian Mining (AIM: AAZ) reported today that in H1 2022, its total production was 28,772 gold equivalent ounces, down 11% compared to H1 2021 (32,171 ounces), due to lower gold grades at Gedabek.
The company said that its total production target for the year to 31 December 2022 expressed as gold equivalent ounces ("GEOs") is between 54,000 GEOs and 58,000 GEOs, compared to total production for the year to 31 December 2021 of 64,610 GEOs. The decrease in production is due to declining ore grades at the Gedabek mine.
Anglo Asian added it performed in keeping with expectations with a half-year revenue of $31.5 million, down from $43.5 million in 2021. Both these decreases were expected, given the previously indicated decreasing rate of production at the existing mines at Gedabek and the higher inventory at 30 June 2022, it noted.
The company also reported that its free cash flow from operations was an outflow of $13.2 million compared to $0.4 million in H1 2021 due to an increase in inventories of $12.1 million arising primarily from an increase in unsold gold to 7,167 ounces.
Due to the lower gold production, the company's all-in sustaining cost of gold production increased in H1 2022 to $983 per ounce compared to $848 in H1 2021.
According to a press-release, profit before taxation was $5.7 million in H1 2022 (H1 2021: $5.9 million), and profit attributable to the equity holders of the parent was $3.5 million (H1 2021: $3.6 million).
The company also announced that its Board recommended an interim dividend of US 4 cents per ordinary share payable to shareholders on the register at the record date of 30 September 2022.
Importantly, the company said that on 5 July 2022, the Government of Azerbaijan ratified amendments to its Production Sharing Agreement, granting Anglo Asian three additional concessions totalling a combined area of 882 square kilometres.
This includes the Garadagh porphyry copper deposit, with a Soviet classified resource of over 300,000 tonnes of copper.
"The acquisition of these concessions is transformational to Anglo Asian's asset portfolio and underpins the strategic target of transitioning into a mid-tier copper focused miner," the company noted in a statement.
Anglo Asian Mining is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.
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