Anglo Asian's Azerbaijan first-half gold output down 6 percent

   

In 2015, the company increased its gold output by 19 percent to 72,032 ounces, hitting its target for the year.

   

The London-listed firm said it increased copper production at Azerbaijan's Gedabek main mine and the Gosha mine to 969 tonnes in the first six months, from 418 tonnes a year earlier.

   

Its silver output rose to 90,782 ounces from 6,477 ounces.

   

"The second half of the year has historically been our best performing half due to the seasonally better weather and our production will also benefit from the second SAG (semi autogenous grinding) mill which is due to start operating next month," Anglo Asian CEO Reza Vaziri said in a statement.

   

"We are therefore confident of meeting our production target for 2016 of between 73,000 and 77,000 ounces of gold and 1,700 to 2,100 tonnes of copper."

   

The SAG mill, which is due to be installed in early August, is used to crush and grind ore.

   

The company commissioned its new flotation plant at Gedabek in the third quarter of last year and it began commercial production in the fourth quarter.

   

Gold dore sales in the second quarter of this year totalled 15,661 ounces at an average price of $1,265 per ounce, up from 12,058 ounces sold in the first quarter at $1,184 per ounce. 

   

Gold is produced at Gedabek and other Azeri mines under a production venture with Anglo Asian, in which the government owns 49 percent.

   

Anglo Asian began production at Gedabek, 350 km west of the capital Baku, in July 2009 with plans to extract 22 tonnes of gold. Overall, Anglo Asian plans to exploit seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.