Debt slashed at Anglo Asian Mining

published 23 May 2012

Caucasian miner Anglo Asian Mining hailed 2011 as a successful year and thinks 2012 could see more of the same or even better.

Revenue rose to $83.8m from $72.0m in 2010. Profit before tax improved by 605 to $31.6m from $19.8m the year before.

Diluted earnings per share rose to 16.47p in 2011 from 13.37p in 2010, but there is still no sign of a dividend from the company, which had a net debt of $3.2m at the end of 2011, though this was substantially down from net debt of $25.5m a year earlier.

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Total gold production of in 2011 was 57,068 ounces, down from 67,267 ounces the year before. Silver dore production eased to 39,086 ounces from 43,356 ounces.

Fortunately for the company, while production was lower, selling prices surged. Gold sales of 49,304 ounces were completed at an average of $1,573 per ounce, compared to 2010 sales of 57,398 ounces at $1,241 per ounce. The gold was produced at an average cash operating cost of $448 an ounce, up from $358 an ounce in 2010.

The group said it is focused on producing a JORC (Joint Ore Reserves Committee, a mining industry body) compliant reserve asset for its flagship Gedabek mine in Azerbaijan in the second quarter of 2012.

"Looking ahead to 2012 and beyond, whilst we remain committed to improving the operational efficiency and gold recovery rates at Gedabek, we expect to see continued solid gold, silver and copper production for the year," said Khosrow Zamani, Chairman of the company.

The shares were up a quarter of a penny in the afternoon session to 33.75p.