Gold, copper and silver producer Anglo Asian Mining plc (LON: AAZ) announced on-year growth but saw their share price dip after noting that copper production volumes had dipped between Q1 and Q2 2019.
In its summary, the Company noted that quarterly production dipped between Q1 and Q2, which Anglo Asian attributed to a comparative reduction in copper production by 63 tonnes. This was due to planned mining of lower grade copper ore; the Company expects copper grades to increase for the remainder of the year.
Despite this, the Company booked improved production expressed as gold equivalent ounces (GEOs). Q2 production was up 3% year on year, rising to 19,618 GEOs. H1 production was up even further on-year, growing 7% to 39,905 GEOs.
The Company added that they posted strong results on cash generation, with $4.6 million in Q2 and $9.3 million for H1 2019. Further, net cash increase from $10.8 million on March 31 2019 to $15.4 million June 30 2019. Anglo Asian also announced
“Backlog of concentrate production now sold due to resolution of logistical issues by off-taker – gross concentrate sales of $7.6 million in Q2 2019.”
The Company is a Central Asian producer with a 1,962 square kilometre production portfolio in Azerbaijan, assembled from Soviet geological data.
Anglo Asian Mining comments
Company CEO Reza Vaziri attached the following insights to today’s statement,
“This is another good quarter’s production with a 7 per cent year-on-year increase in the first half compared to 2018. The production in the quarter was slightly less than the previous quarter due to the planned mining of lower grade copper ore, however, we are expecting copper grades to increase for the rest of the year. The logistical issues in selling concentrate reported last quarter were resolved and the Company had gross sales of $7.6 million of concentrate in the quarter. The Company continues to be a strong cash generator and our net cash increased by $4.6 million in the quarter.”
The Company’s shares dipped 1.95% or 2.4p in morning trading on Monday, down to 120.6p a share 15/07/19 11:26 GMT.
Elsewhere in the mining and minerals sector, recent updates have come from; Pan African Resources (LON: PAF), Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) and Arc Minerals Ltd (LON: ARCM).