Azerbaijan’s leading gold mining company, Anglo Asian Mining Plc, reported a decline in gold production to 11,907 ounces in the first quarter of 2021 from 15,867 ounces in the same period last year.
Anglo Asian produces gold at Gedabek and other Azerbaijan mines in a joint venture with the state in which the London-listed company holds a 51-percent stake.
The company said copper production increased in the first quarter by 14 percent year-on-year to 638 tonnes from 559 tonnes in January-March 2020. Silver production rose to 35,365 ounces from 34,642 ounces.
According to the company website, the total production of gold-equivalent ounces (GEO), which includes other metals, declined to 15,810 GEO from 18,219 GEO.
Anglo Asian said gold bullion sales totalled 5,635 ounces at an average price of $1,697 per ounce. In January-March 2020, 11,236 ounces were sold at an average price of $1,577 per ounce.
The company forecast its gold output this year in a range of 48,000-54,000 ounces, down from 56,864 ounces produced last year.
“Lower gold production forecast due to mining only from the company’s existing Gedabek and Gadir mines in 2021, with no contribution from Ugur, which has now been depleted,” the company said.
The forecast for copper production stood at 2,500-2,800 tonnes. Copper output in 2020 was 2,591.
Anglo Asian projects that total metal production in 2021 will be in a range of 64,000-72,000 GEOs. Last year’s total output was 67,249 GEOs.
“This year, we will only be mining from our existing Gedabek open pit and Gedabek and Gadir underground mines,” Reza Vaziri, the company CEO, said in a statement.
“However, we are expecting an increase in copper production as we take more ore from the Gedabek open pit. The first quarter’s production and the full-year production guidance reflect this fact.”
Gold and silver mining in Azerbaijan is carried out by two companies – Anglo Asian Mining and AzerGold CJSC, established in 2015.
According to the State Statistics Committee, total gold production declined to 829.5 kg in January-March 2021, 12.5 percent less than in the same period last year. Silver production fell 1.2 percent to 1,208 kg.