Anglo Asian shares dive after reporting gold output drop in Azerbaijan

By Cecilia Jamasmie / October 13, 2016 / www.mining.com / Article Link

Shares in Azerbaijan-focused miner Anglo Asian Mining (LON:AAZ), the country's top gold producer, took a hit Thursday after it reported its January-September output was lower than in the same period last year, adding it was cutting its 2016 production target.

The company produced 49,874 ounces of gold in the nine months to September, or 7.8% less than in the same quarter last year. As a consequence it has revised down its 2016 output target from 73,000-77,000 ounces to 69,000-71,000 ounces.

Investors reacted negatively to the news. The stock was trading almost 8.33% down in London late afternoon to 19.25p.

Anglo Asian's copper and silver output figures were more positive. It produced 1,363 tonnes of the red metal from both its Gedabek and Gosha mines in the first nine months, up from the 634 tonnes it mined in the period last year.

Silver production increased to 114,915 ounces from 10,916 ounces.

The company, which started mining at its flagship Gedabek operation six years ago, plans to develop seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.

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