Home Shares Anglo Asian set to reach record annual revenue in impressive Tuesday update

Anglo Asian set to reach record annual revenue in impressive Tuesday update

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Anglo Asian set to reach record annual revenue in impressive Tuesday update

Anglo Asian Mining PLC (LON:AAZ) have given shareholders an impressive updated on Tuesday.

The firm said that it is looking at record annual revenue, due to solid production and a rise in commodity prices.

Anglo Asian’s 2019 production was 82,795 gold equivalent ounces, 1.1% lower than the year before. Copper was up 34% to 2,210 tonnes, with gold down 4% to 70,098 ounces.

The firm however did note that silver production had declined by 24% in the period, to 159,356 ounces.

In the fourth quarter, gold ounce production fell 3% year on year to 21,284 ounces. Gold fell 1.7%, silver by 37% however copper rose 24%.

The firm had accounted for $1,250 per ounce gold price in 2019, however the price rose over 18% across the year which contributed to the impressive performance highlighted in the update.

Copper prices rose 3.5% over the year, and were ahead of budget, with silver climbing 15% and easily topping Anglo Asian’s budgeted price.

Anglo Asian CEO Reza Vaziri commented:

“We have had another strong year, delivering production in line with expectations and also making good progress with our exploration programme. We report our production in gold equivalent ounces which have reduced due to the increase in the market price of gold relative to the market price of copper during the year. Our production calculated as gold equivalent ounces using our budgeted metal prices was 82,795 ounces and within our original production forecast.

“The Company’s financial performance continues to be exceptional. We have increased net cash in 2019 by $15.1 million, notwithstanding paying dividends of $8.7 million and corporation taxes of $7.5 million in the year. The Company will achieve the significant milestone of becoming debt free early next month when the final installment of the refinancing loan is repaid. This strong cash generation will allow the Company to continue to enhance our announced dividend policy.

“The Company is in a strong operational position and robust financial health as we move into 2020. I look forward to updating you on the progress of our exploration programme which we anticipate releasing within quarter one and other activities which the Company will be carrying out during the rest of the year.”

Anglo Asian recover from setback in July

The firm announced in July 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.

The update today shows that the firm is keen to develop and hungry to increase their capacities of production.

Shareholders of Anglo Asian can be optimistic for what 2020 if the firm can deliver their expectations.

Shares in the firm trade at 147p (+1.73%). 14/1/20 12:31BST.