Anglo Asian Mining PLC Hedging of gold sales for remainder of 2016 (5963C)
June 29 2016 - 2:30AM
UK Regulatory
TIDMAAZ
RNS Number : 5963C
Anglo Asian Mining PLC
29 June 2016
Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector:
Mining
29 June 2016
Anglo Asian Mining plc
Hedging of gold sales for remainder of 2016
Anglo Asian Mining plc ("Anglo Asian" or "the Company"), the AIM
listed gold, copper and silver producer focused in Azerbaijan, has
taken advantage of the recent strength of the gold price and
entered into a transaction to hedge 18,000 ounces of its gold sales
for the remainder of 2016. This represents approximately 50 per
cent. of its forecast sales for this period.
The Company has entered into a series of net zero cost options
with a lower (PUT option) sales price of US$1,200 per ounce and an
upper (CALL option) sales price of US$1,426 per ounce. The options
mature in lots of 1,500 ounces of gold with the first lot maturing
on 12 July 2016. The remainder of the lots mature every two weeks
from this date with the final lot maturing on 13 December 2016.
PUT options give the right to the Company (but not the
obligation) to sell gold at the option price. CALL options give the
right to the holder (but not the obligation) to buy gold at the
option price. The 18,000 ounces will therefore have a minimum /
maximum sales price per ounce of US$1,200 / US$1,426. Where the
spot price on date of sale is between US$1,200 and US$1,426, sales
will take place at spot price.
Anglo Asian CEO Reza Vaziri commented, "This is a win win
transaction for us. Whilst protecting the downside in the current
volatile gold market over the coming six months given Anglo Asian's
debt service payments, we also enjoy considerable exposure to any
further increase in the price of gold during this period."
For further information please visit www.angloasianmining.com or
contact:
Anglo Asian Mining Tel: +994 12 596
Reza Vaziri plc 3350
-------------------- ------------------- ------------------
Anglo Asian Mining Tel: +994 502 910
Bill Morgan plc 400
-------------------- ------------------- ------------------
Ewan Leggat SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3470 0470
Nominated Adviser
and Broker
-------------------- ------------------- ------------------
Laura Harrison SP Angel Corporate Tel + 44 (0) 20
Finance LLP 3470 0470
-------------------- ------------------- ------------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
-------------------- ------------------- ------------------
Notes:
Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver
producer in Central Asia with a broad portfolio of production and
exploration assets in Azerbaijan. The Company has a 1,962 square
kilometre portfolio, assembled from analysis of historic Soviet
geological data and held under a Production Sharing Agreement
modelled on the Azeri oil industry.
The Company developed Azerbaijan's first operating
gold/copper/silver mine, Gedabek, which commenced gold production
in May 2009. Gedabek is an open cast mine with a series of
interconnected pits. The Company is also mines high grade ore from
the Gadir underground mine which is co-located at the Gedabek site.
The Company has a second underground mine, Gosha, which is 50
kilometres from Gedabek. Ore mined at Gosha is processed at Anglo
Asian's Gedabek plant.
Gold production for the year ended 31 December 2015 from Gedabek
totaled 72,032 ounces with 969 tonnes of copper also produced.
Gedabek is a polymetallic deposit and its ore has a high copper
content, and as a result the Company produces copper concentrate
from its Sulphidisation, Acidification, Recycling, and Thickening
(SART) plant. Anglo Asian also produces a copper and precious metal
concentrate from its flotation plant, which commenced production in
the last quarter of 2015. This is initially processing tailings
from the agitation leach plant.
Anglo Asian is also actively seeking to exploit its first mover
advantage in Azerbaijan to identify additional projects, as well as
looking for other properties in order to fulfil its expansion
ambitions and become a mid-tier gold and copper metal production
company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUKUNRNWANURR
(END) Dow Jones Newswires
June 29, 2016 02:30 ET (06:30 GMT)
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From Apr 2024 to May 2024
Anglo Asian Mining (LSE:AAZ)
Historical Stock Chart
From May 2023 to May 2024