14th May 2014 13:52
LONDON (Alliance News) - Anglo Asian Mining PLC Wednesday said that, as it continues finalising its full year 2013 results, its profitability for the year is expected to be even further impacted by increased cost of sales and the accounting treatment of certain items.
The gold producer with operations in Azerbaijan, which had already issued a profit warning in January, said that based on the findings it now expects profits for the year to be significantly below market expectations.
The company announced in January that it missed its production target for 2013 and expected to report lower overall profit in the full-year results.
It increased its production to 52,068 ounces, from 50,025 ounces in 2012, but failed to achieve its original production target of 60,000 ounces. It said the lower production, coupled with a lower gold prices during 2013, means that it expects to see the cash cost per ounce increase and profitability for 2013 significantly reduced from 2012.
The company said on Wednesday that it expects to release its final results by the end of May.
Anglo Asian mining shares were down 14.2% to 14.58 pence, putting it in the top five AIM All-Share fallers on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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