Anglo Asian Mining Plc · LSE:AAZ
Anglo Asian Mining — Investor Presentation (September 2016)
28 slides from Anglo Asian Mining's investor presentation, Sep 13, 2016
Slide 1: Anglo Asian Mining Plc Investor Presentation
Anglo Asian Mining Plc Investor Presentation 12-13 September 2016 Azerbaijan gold, copper and silver producer
Slide 2: Disclaimer
Disclaimer The information in this document is subject to updating, revision and amendment. This document neither constitutes nor forms nor should be constructed as constituting or forming part of any offer or invitation to sell or any solicitation of any offer to purchase or to subscribe for any se
Slide 3: Agenda
Agenda 1 Introduction to the Company 2 Company resources and reserves 3 Portfolio overview 4 Production and metal sales 5 Financial results 6 Outlook 3
Slide 4: Introduction to the Company
Introduction to the Company 4 4
Slide 5: Company overview
Company overview • AIM traded Group producing gold, copper and silver in Azerbaijan • Production sharing agreement with the Government of Azerbaijan based on local oil industry model • Main property is the Gedabek mine site: • Main open-cast mine and co-located Gadir underground mine • Company’s pro
Slide 6: Proven board of directors and senior management
Proven board of directors and senior management Khosrow Zamani * Governor John Sununu* Non-executive chairman Non-executive director • Former director Southern Europe and Central Asia of the • Chief of staff to President George H.W. Bush International Finance Corporation (“IFC”) • Former partner in
Slide 7: Shareholder information
Shareholder information Share price 15.25p Shareholders Market AIM Ticker AAZ Market capitalisation £17.1 million Shares in issue 112,661,024 Nominated adviser and broker S.P. Angel As at 06.09.16 1 Year Share Price Graph 7
Slide 8: Tethyan Tectonic belt – highly prospective region
Tethyan Tectonic belt – highly prospective region Gedabek, Gosha and Ordubad are located on the Tethyan Tectonic Belt – one of the world’s significant copper and gold bearing belts 8
Slide 9: Azerbaijan and location of Company portfolio
Azerbaijan and location of Company portfolio 1,962 square kilometre portfolio in Azerbaijan Gosha Gedabek Ordubad Soutely* *Occupied contract Gyzilbulakh* areas to develop when political climate permits Vejnali* • Azerbaijan is situated in south-western Asia, bordering the Caspian Sea between Iran a
Slide 10: Production sharing agreement
Production sharing agreement Production sharing agreement (“PSA”) with the Government of Azerbaijan – a revenue sharing contract modeled on Azerbaijan’s oil industry • Six contract areas • Each contract area entitled to a 15 year production period after notice of discovery and can be extended up to
Slide 11: Company resources and reserves
Company resources and reserves 11 11
Slide 12: Gedabek resource
Gedabek resource 29% increase to JORC compliant gold resource of 1.45 million ounces of gold (measured and indicated) as at June 2014 Classification Tonnage Grades Contained metal Gold Copper Silver Gold Copper Silver tonnes g/t % g/t ounces tonnes ounces Measured 37,189,682 0.822 0.246 5.904 982,29
Slide 13: Gedabek ore reserves estimate
Gedabek ore reserves estimate JORC compliant ore reserves of 682,000 ounces of gold,102,000 tonnes of copper and 76,000 tonnes of recoverable copper as at 1 September 2014 In situ ore In situ grades Contained metal Recovered metal Reserve Au Cu Ag Au Cu Ag Au Cu Ag category tonnes g/t % g/t ounces t
Slide 14: Portfolio overview
Portfolio overview 14 14
Slide 15: Gedabek – The Company's main site
Gedabek – The Company’s main site • 300 square kilometre contract area in western Azerbaijan • Poly-metallic deposit which produces gold, copper and silver from an open-cast mine • Azerbaijan’s first recent gold mine – first pour May 2009 • Gadir underground mine co-located at Gedabek site – full ye
Slide 16: Gedabek – ore processing
Gedabek – ore processing Heap Agitation Flotation SART leaching leaching • Ore from Gedabek and Gosha is processed into gold doré and a copper and precious metal concentrate by various processes: • Heap leaching crushed ore (2009) – ore heaped onto “pads” and irrigated with cyanide • SART (2010) – c
Slide 17: Increasing the Life of Mine at Gedabek
“Increasing the Life of Mine at Gedabek is paramount to long term production success and so we have successfully expanded to underground mining and development of the Gadir Adit” 17 New Gadir underground mine at Gedabek
Slide 18: Production and metal sales
Production and metal sales 18 18
Slide 19: Gedabek – Gold doré production and sales
Gedabek – Gold doré production and sales Gold produced* Silver produced* Gold bullion sales** Gold sales price (ounces) (ounces) (ounces) ($/ounce) Quarter ended 31 March 2015 17,185 597 17,206 1,214 30 June 2015 18,739 900 16,088 1,193 H1 2015 35,924 1,497 33,294 1,204 30 Sept 2015 18,158 907 14,87
Slide 20: Gedabek – SART and flotation production
Gedabek – SART and flotation production Concentrate production* Copper content* Gold content* Silver content* (dry metric tonnes) (tonnes) (ounces) (ounces) Quarter ended 31 March 2016 SART processing 363 181 12 7,789 Flotation 1,458 251 777 24,595 Total 1,821 432 789 32,384 Quarter ended 30 June 20
Slide 21: Gedabek – Total concentrate production and sales
Gedabek – Total concentrate production and sales Concentrate Copper Gold Silver Concentrate Concentrate production* content* content* content* sales** sales (dry metric tonnes) (tonnes) (ounces) (ounces) (dry metric tonnes) (US$000)** Quarter ended 31 March 2015 298 182 8 1,354 234 660 30 June 2015
Slide 22: Gedabek – strongly growing copper production
Gedabek – strongly growing copper production FY 2016 FY 2016 Gold production target Copper production target 69,000 – 71,000 oz 1,700 – 2,100 tonnes FY 2015 FY 2015 Gold production Copper production 72,032 oz 969 t +19% +24% Compared to 2014 Compared to 2014 22
Slide 23: Financial results
Financial results 23 23
Slide 24: H1 2016 – Financial results
H1 2016 – Financial results H1 2016 H1 2015 FY 2015 (US$000) (US$000) (US$000) Revenue 39,323 41,823 78,057 Cost of sales (29,960) (39,940) (75,234) Gross profit 9,363 1,883 2,823 Operating profit / (loss) 6,034 (1,144) (3,189) Profit / (loss) before tax 3,488 (4,124) (8,910) Cash generated from 16,
Slide 25: Outlook
Outlook 25 25
Slide 26: Why Anglo Asian?
Why Anglo Asian? Target of Company has Low cost gold 69,000 to Entrepreneurial Copper long and copper 71,000 with superb in- production established producer ounces of country growing strongly operations gold - FY16 experience production Turnaround to profitability achieved in 2016 • Group has now re
Slide 27: Thank you
TƏŞƏKKÜRLƏR! THANK YOU! Cпасибо! 27
Slide 28: Contacts
Contacts Bill Morgan Stephen Westhead Chief financial officer Director of geology [email protected] [email protected] Tel: +994 502 910 400 Tel: +994 502 291 6894 20, 520 Yard Huseyn Javid Avenue Baku, Republic of Azerbaijan 28
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