Baku, Azerbaijan, Aug. 25
By Azad Hasanli – Trend:
Since early 2016, the share value of Azerbaijan’s gold producer Anglo-Asian Mining PLC (AAM) increased by 3.2 times – from 5.25 pence ($6.9) to 16.88 pence ($22.3) on the London Stock Exchange.
AAM’s shares are being sold on the London Stock Exchange since July 2005.
Over the past five years, AAM shares reached their maximum cost in October 2012, when the cost of one share was 55.25 pence.
At that time, the cost of gold exceeded $1,700 per ounce, while currently its cost is at the level of $1,330 per ounce.
However, despite a significant decline in the price of gold over the recent years, the price of the precious metal increased by 19 percent since early 2016.
Experts of authoritative banking group ABN AMRO Group forecast that the cost of an ounce of gold will reach $1,425 by late September.
The growth in gold prices is related to the decline in its production under the conditions of increasing demand for the precious metal.
As a rule, gold is often seen as a safe asset during political and economic uncertainty.
Against the background of these tendencies, AAM expands its operations and increases gold production.
In 2015, the company produced 72,032 ounces of gold by increasing the output on the Gedabek mine site and commissioning a flotation plant in 4Q2015.
AAM produced 33,837 ounces of gold, 969 tons of copper and 90,782 ounces of silver in 1H2016.
Moreover, two devaluations in Azerbaijan [in February and December of 2015] had a positive impact on AAM.
According to the company’s estimates, AAM will reduce operating expenses by $13 million in 2016 due to the cheapening of manat.
Anglo Asian Mining PLC is a gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan.
Based on the production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan: Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.
The gold produced at the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and are stored in the government’s account.
