Anglo Asian Mining; H1 update

Anglo Asian Mining (AIM All-Share, Market capitalisation: £141m, 123p and 5.0% of JIC Portfolio and 12.5% of JIC Top 10):

Q2 and H1 update.

Conclusion: No surprises here but good to see net cash increase. It is targeting production of between 82,000 and 86,000 GEOs this year, and at the halfway stage it is happy with that guidance. Its average selling price in Q2 was $1,332 per oz for the 13,467 oz of gold it sold. If the current gold price, over $1,400 per oz, is sustained, one would expect higher cash generation in H2. The share price still looks to be in a strong uptrend, and if the gold price stays strong, upgrades to profits and cash generation are likely later in the year. Happy Holder! 

Main points: 

First-half production was up 7% on H1 2018 at 39,905 GEOs (gold equivalent ounces). 

It generated net cash of $4.6m in Q2, increasing its net cash position to $15.4m at 30th June. 

Anglo Asian CEO Reza Vaziri commented, “This is another good quarter’s production with a 7 per cent year-on-year increase in the first half compared to 2018. The production in the quarter was slightly less than the previous quarter due to the planned mining of lower-grade copper ore, however, we are expecting copper grades to increase for the rest of the year. The logistical issues in selling concentrate reported last quarter were resolved and the Company had gross sales of $7.6 million of concentrate in the quarter. The Company continues to be a strong cash generator and our net cash increased by $4.6 million in the quarter.”

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