Anglo Asian first half hurt by harsh weather

An unseasonably harsh winter at its flagship gold mine Gedabek hurt half year results at aim-listed gold producer Anglo Asian Mining however stronger production levels are anticipated in the second half.

Pre-tax profit fell to US$10.5m for the six months ended June 30th 2012 from $14.2m the same time a year earlier. Revenue for the period also fell to $30.1m from $38.5m before.

The disruption at the Gedabek mine prompted Anglo Asian to reduce its production target to between 49,000 - 51,000 ounces of gold, down from 54,000 ounces. Its target for silver however is unchanged at 26,000 ounces.

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Gold sales fell to 18,135 ounces compared to 24,586 a year earlier at an average price of $1,644 versus $1,450 before. However production issues sent costs up to $767 from $448.

Non-executive Chairman Khosrow Zamani stated: "Due to an unseasonably harsh winter H1 2012, production figures were marginally below management's estimates. However H2 2012 is expected to be stronger in terms of production levels and operating costs at Gedabek."

The group added that it has shipped and sold copper concentrate samples to Glencore from its Gedabek mine at the period end for $1.4m.

"Glencore is currently conducting test smelting of the product and if successful it is envisaged further sales will be made in the future. Anglo Asian intends to find a long term sales partner for the concentrate and will update on progress in due course," it explained in a company statement.

CJ