British company sharply reduces precious metals output in Azerbaijan

British Anglo-Asian Mining Plc engaged in gold, silver and copper mining in Azerbaijan produced 5,270 gold equivalent ounces (GEO) of precious metals in the first half of 2024, down 77.5% year-on-year, Report informs, citing the company.

At the same time, the company produced 4,704 ounces of gold (67.8% less), 100 tons of copper (18.7 times less), and 12,740 ounces of silver (71.5% less) in Azerbaijan.

During the reporting period, 4,692 ounces of gold (64.8% less) and 3,044 ounces of silver (52.7% less) were produced from the Gadabay field.

The company’s gold bullion sales totaled 6,000 ounces at an average of $2,174 per ounce in the first half of the current year. Meanwhile, the figures stood at 10,506 ounces at an average of $1,939 per ounce in the corresponding period of 2023.

In January-June of this year, the company produced 166 tons (98.5% less) of copper concentrate, and sold 331 tons of copper concentrate (95% less) for $1,297 (87.6% less).

The company had an unsold gold doré and copper concentrate inventory of $3.6 million on 30 June 2024.

Meanwhile, the company's net debt increased from $10.2 million on January 1, 2024, to $12.1 million on June 30, 2024.

The Production Sharing Agreement (PSA) type contract was signed on August 21, 1997, and provided for the development of eight fields. Azerbaijan’s share in the contract is 51%, Anglo Asian Mining PLC - 49%.

Anglo Asian Mining is extracting precious metals from the contract areas of Gadabay and Gosha. The first gold mining began in 2009 from the Gadabay deposit, silver mining started in 2010. In September 2013, the company began developing the Gosha contract area.