News Column

Anglo Asia Expects Small Loss In First-Half On High Costs, Slow Start

June 30, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Anglo Asian Mining PLC said Monday that it expects a small loss for the six months to end-June, as it saw a slow start to the year and incurred high cash costs during the first five months of 2014, in a statement released ahead of its annual general meeting.

The company expressed confidence that 2014 would be a "transformational year" for the company, citing improvements in month-on-month production, cost saving initiatives, increased processing capacity at its Gedabek mine in Azerbaijan, and a second gold project due to contribute in the year.

Anglo Asian said the past 18 months had been challenging for gold companies as gold prices declined from USD1,880 per ounce in 2012 to USD1,199 in 2013, which hit its profit for 2013. However, there is evidence that the gold price has stabilised in 2014, and the company said this is predicted to continue.

Chief Financial Officer Sean Duffy has stepped down as of Monday to pursue new opportunities, the company said, and David Swan has been appointed interim chief financial officer.

The company said it was well advanced in the processing of appointing a full time successor.

At the company's Gedabek mine a new agitation leaching plant was completed in June 2013; it said there had been "teething problems" in higher than expected processing costs, but the new plant had helped to increase gold production at Gedabek.

The company said it was on track for 595 tonnes of copper produced in the financial year 2014.

Anglo Asian reiterated a commitment to advance its second gold project at Gosha, in hopes of developing a small, high grade underground gold mine with an average rate of production of 15,000 to 20,000 ounces per year.

Its total gold production target from the combined Gedabek and Gosha mines is 62,000 to 67,000 ounces of gold for 2014.

Shares in Anglo Asia were trading down 5.1% at 14.00 pence Monday morning.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters