Anglo Asian Mining (AAZ) H1 2024 earnings summary

Executive summary

• Production was severely reduced in H1 2024 due to suspension of agitation leaching and flotation processing, resulting in a loss before tax of $5.5 million compared to a profit of $1.4 million in H1 2023.

• Authorisation to raise the tailings dam wall was received in August 2024, enabling a ramp-up to full production, with agitation leaching to restart imminently and flotation processing in November.

• Gilar mine development progressed, with first ore expected in December 2024, supporting the transition to a mid-tier copper producer.

• No interim dividend declared due to losses; directors intend to resume dividends when conditions allow.

Financial highlights

• Revenue fell to $13.4 million (H1 2023: $30.8 million) due to suspended processing.

• Gross loss of $1.7 million (H1 2023: gross profit of $5.6 million); net cash from operating activities was $3.2 million (H1 2023: $0.6 million).

• Net debt increased to $12.0 million as of 30 June 2024 (31 December 2023: $10.3 million).

• Higher finance costs at $1.2 million (H1 2023: $0.7 million) due to increased borrowings.

• No AISC reported for H1 2024 due to non-production costs and idle plant.

Outlook and guidance

• Full year 2024 production guidance maintained at 15,000–19,500 gold equivalent ounces (GEOs), with 14,000–16,000 ounces of gold and 250–850 tonnes of copper.

• Agitation leaching to restart imminently; flotation processing to resume in November; Gilar mine to commence production in December.

• Free cash flow expected from January 2025 as full production resumes.