Tue, 24th Nov 2020 12:23
(Sharecast News) – Azerbaijan-focussed gold, copper and silver producer Anglo Asian Mining updated its guidance for turnover and production at the Gedabek contract area in the west of the country on Monday, to between 68,000 and 72,000 gold equivalent ounces for the year ending 31 December.
The AIM-traded firm said that was primarily due to some delays in underground development, resulting from the conscription of a number of engineering staff, together with slowed tunnelling progress due to underground rock faulting.
It confirmed that it was still on track to achieve turnover for 2020 of more than $100m.
The board said staff members who were conscripted due to the territorial dispute with Armenia were expected to return to work early in 2021, after the military demobilised.
Its operations at Gedabek suffered no physical damage, and were said to be operating normally.
Anglo Asian said that, with a peace agreement signed, it would shortly inform the market on its plans for the three contract areas, included in its 1997 production sharing agreement with Azerbaijan, located within those areas that had now become accessible.
"On reflection, this has been a challenging year for the company," said chief executive officer Reza Vaziri.
"The difficulties started with the on-going restrictions imposed due to the Covid-19 pandemic."
Vaziri said the year was ending with a peace treaty in place between Azerbaijan and Armenia, with international peacekeepers helping maintain the agreement.
"Despite all these headwinds, it is a testament to the entire workforce that the company has continued in operation and remains on track to achieve a turnover of over $100m for the year, with a significantly strengthened balance sheet, whilst still paying dividends to shareholders."
At 1207 GMT, shares in Anglo Asian Mining were down 3.61% at 121.45p.