16th May 2019 12:08
LONDON (Alliance News) - Anglo Asian Mining PLC on Thursday said profit and revenue both increased in 2018 thanks to improved gold and silver production and lower costs.
The stock was trading 7.5% higher on Thursday at 101.00 pence a share.
The Azerbaijan-focused gold, copper and silver producer said its pretax profit multiplied in 2018 to USD25.2 million from USD5.7 million a year earlier, as revenue jumped by 26% to USD90.4 million from USD71.8 million.
The company said it paid its first dividend in 2018 of USD0.03 per share.
A total of 83,736 gold equivalent ounces were produced in 2018, a 17% increase year-on-year and a record for the company. Anglo Asian Mining guided annual production of 78,000 to 84,000 ounces.
Gold production was up 22% to 72,798 ounces in 2018, while silver production also increased by 22% to 210,184 ounces compared to 2017.
Copper production decreased during the year, however, to 1,645 tonnes from 1,991 tonnes the year before. The flotation plant was mostly on planned care and maintenance in the first half of the year, Anglo Asian Mining explained.
Under the terms of the production sharing agreement with the government of Azerbaijan, the company and the government share the commercial products of each mine. The government's share is 51% of profit production. Profit production is the value of production, less all capital and operating cash costs incurred.
Bullion sales in 2018 totalled 59,481 ounces of gold and 25,394 ounces of silver, up from 43,496 ounces of gold and 18,442 ounces of silver a year earlier. The average price stood at USD1,265 per ounce of gold and USD16 per ounce of silver, both broadly flat year-on-year.
Anglo Asian Mining said it produced gold at an all-in sustaining cost per ounce of USD541 in 2018 compared to USD604 the year before.
Related Shares:
Anglo Asian