Anglo Asian Mining PLC (LON:AAZ) shres jumped higher on Thursday as the Azerbaijan-focused gold miner saw annual profits surge as production in 2018 came in at the top of its forecast and sales jumped by over a third.
Output in the year to December rose 17% to 83,736 gold equivalent ounces, while sales jumped 36% to just under 59,500oz at an unchanged price of US$1,265 per oz.
That helped pre-tax profits soar 342% to US$25.2mln (from US$5.7mln) as costs also fell to US$541 per ounce on a sustaining basis.
Chairman Khosrow Zamani described as it as truly transformational year for the miner, which is now 'in an enviable position' to move forward.
“Gedabek is now generating stable cash flow which provides funds for both investment and to pay dividends.
“The company's solid balance sheet and excellent relationships with banks in Azerbaijan and elsewhere means loan finance can be easily obtained if required.
“Together, this means the company has ample financial resources to seize any suitable opportunities that may arise.”
Strong cashflows meant Anglo ended the year with cash of US$6.1mln and also paid out its first dividends worth in total 7c for the year.
Gedabek produces gold at one of the lowest costs in the industry, added Zamani, and the aim is to maintain this position as it extends its production life.
Anglo added it has licences over an area of 1,000 sq Km and a recent aerial survey had already identified additional targets at Gedabek and a discovery at Gosha, another of its mines nearby.
In late afternoon trading, shares in Anglo Asian Mining were up 4.3% at 98.0p.
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