Anglo Asian Mining delivers strong Q2 production

JOHANNESBURG (miningweekly.com) – Aim-listed gold, copper and silver producer Anglo Asian Mining on Monday reported a decline in production, from 36 729 gold-equivalent ounces in the first half of 2016, to 28 554 gold-equivalent ounces in the first half of this year.

The Azerbaijan-focused miner produced 23 218 oz of gold – 18 389 oz contained within gold doré, 9 oz from sulphidisation, acidification, recycling and thickening (Sart) processing and 4 820 oz from flotation – down from the 33 837 oz produced in the prior corresponding period.

First-half copper production increased to 1 322 t, comprising 397 t from Sart processing and 925 t from flotation, compared with the 969 t produced in the six months to June 30, 2016.

Silver production for the half-year under review decreased from 90 782 oz to 85 087 ox, including 5 713 oz contained within gold doré, 10 240 oz from Sart processing and 69 134 oz from flotation.

Quarter-on-quarter, the three months to June proved to be the stronger quarter, with total production rising to 14 775 gold-equivalent ounces from 13 779 gold-equivalent ounces in the first quarter.

“This has been a strong quarter for Anglo Asian with a 7% increase in production to 14 775 oz expressed as gold-equivalent ounces, despite the introduction of our production optimisation activities, which we had anticipated would temporarily impact on our production profile,” said Anglo Asian CEO Reza Vaziri.

Second-quarter gold production rose to 12 140 oz from first-quarter output of 11 078 oz, while copper production ticked up from 606 t to 716 t.

Silver production for the second quarter to June 30 totalled 45 718 oz, an increase on the 39 369 oz produced in the first quarter.

Anglo Asian maintained its production guidance for the full year at between 64 000 and 72 000 gold-equivalent ounces, just under the 72 304 gold-equivalent ounces achieved in the 2016 financial year.

Meanwhile, the company reported second-quarter gold bullion sales of 7 406 oz at an average of $1 258/oz, compared with the first quarter’s sales of 8 283 oz at an average of $1 220/oz.

Copper concentrate shipments during the three months to June totalled 3 166 dry metric tonnes (dmt) with a sales value of $6.1-million, excluding the government of Azerbaijan’s production share, compared with the 2 230 dmt achieved with a sales value of $4.4-million in the first quarter.