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Anglo Asian Mining PLC (LSE:AAZ) is advancing towards full production at its Gedabek mine following the recent authorization to raise the tailings dam wall. Construction of the new wall commenced on August 6, 2024, marking a significant step in the mining company’s efforts to normalize production levels.
Prior to receiving the necessary approvals, Anglo Asian had suspended agitation leaching and flotation production, which contributed to a decline in half-year revenues, dropping from $30.8 million to $13.4 million. The company reported gold bullion sales of 6,000 ounces during the first half of 2024, down from 10,506 ounces in the same period last year. However, this decrease was partially offset by a higher average gold price of $2,174 per ounce compared to $1,939 per ounce in the prior year.
The interim results showed a loss of $5.5 million, contrasting with a profit of $1.4 million reported for the first half of 2023. At the end of the reporting period, net debt stood at $12 million. Despite these challenges, Anglo Asian has maintained its production guidance for the full year, aiming to produce between 15,000 to 19,500 gold equivalent ounces.
Chief Executive Reza Vaziri commented on the performance, describing it as satisfactory given the partial suspension of processing operations throughout the reporting period. “During this time of significantly reduced production, we have taken a number of important steps to deliver future growth and achieve our medium-term target of becoming a mid-tier producer,” Vaziri noted.
With the ramp-up towards previous production rates underway, the company is also nearing the commencement of production at its Gilar site. This strategic approach aims to bolster production levels and enhance operational efficiency as Anglo Asian Mining navigates the complexities of the current mining landscape.
