13th May 2020 13:49
(Alliance News) - Anglo Asian Mining PLC on Wednesday said profit increased in 2019 as revenue climbed while the cost of sales and operating expenses fell.
The miner reported a USD30.1 million pretax profit for 2019, up 19% from USD25.2 million the year before.
Revenue rose 1.9% to USD92.1 million from USD90.4 million while cost of sales declined 3.4% to USD54.6 million from USD56.5 million, meaning gross profit was USD37.5 million, up 11% from USD33.8 million.
A drop in other operating expenses to USD943,000 from USD1.8 million was another contributor to Anglo Asian's higher profit.
The firm announced a final dividend of 4.5 US cents per share, taking the total for the year to 8.0 cents per share, up from 7 cents in 2018.
Chair Khosrow Zamani said: "The company achieved considerable success in 2019 but the Covid-19 health emergency has made the short-term outlook uncertain. However, Anglo Asian is now financially robust and well placed to weather the challenges of Covid-19. The company's main priority during this period is to protect the health and safety of its staff whilst maintaining normal operations wherever possible."
Annual production in 2019 aligned with expectations, with 82,795 gold equivalent ounces produced versus the targeted 82,000 to 84,000 gold equivalent ounces. Gold production fell 4% to 70,098 ounces, copper production rose 34% to 2,210 tonnes, and silver production dropped 24% to 159,356 ounces.
Zamani said: "We have set a production target of 75,000 to 80,000 gold equivalent ounces for 2020, which is a small decrease from 2019. This includes up to 67,000 ounces of gold and between 2,200 and 2,400 tonnes of copper. We are currently still on track to achieve this production target and I look forward to updating shareholders with our progress in the coming months. At current metal prices achieving our production guidance is expected to result in a turnover in excess of USD100 million."
Shares in Anglo Asian Mining were down 1.6% at 124.99 pence in London on Wednesday afternoon.
By Anna Farley; [email protected]
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