Anglo Asian Mining PLC

Annual report and accounts 2023

A mining business with an exceptional portfolio of assets to deliver sustainable growth

Anglo Asian Mining


Anglo Asian Mining

01 Highlights

  1. Anglo Asian Mining at a glance
  2. Gedabek, Xarxar and Garadag
  3. Gosha, Vejnaly and Ordubad
  4. Kyzlbulag, Demirli and Gedabek town
  5. Our growth strategy

Chairman's statement and President and chief executive's review

07 Chairman's statement

09 President and chief executive's review

Strategic report

12 Strategic report

26 Section 172(1) statement and stakeholder engagement

Sustainability and environment

  1. Sustainability and health and safety
  1. Climate change and TCFD disclosures

Financial review

42 Financial review

Corporate governance

  1. Board of directors
  2. Senior management
  3. Corporate governance
  1. Directors' report
  1. Report on directors' remuneration
  2. Statement of directors' responsibilities

Group financial statements

  1. Independent auditor's report
  1. Group statement of income
  1. Group statement of comprehensive income
  2. Group statement of financial position
  3. Group statement of cash flows
  4. Group statement of changes in equity
  5. Notes to the Group financial statements

Company financial statements

111 Company statement of financial position

112 Company statement of changes in equity

113 Notes to the Company financial statements

Annual general meeting

119 Letter to shareholders from the Chairman

121 Notice of annual general meeting of shareholders

Company information

123 Company information

Anglo Asian Mining PLC Annual report and accounts 2023

Anglo Asian Mining PLC is an established gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan. The Company produced 31,821 gold equivalent ounces in the year ended

31 December 2023. The Company has a well-defined strategy to grow production and become a mid-tier copper producer. Production will commence from Gilar, a new copper and gold mine at Gedabek, in the second half of 2024.

The Company has an exciting portfolio of greenfield assets which lay the foundation for substantial future growth of the business. In addition to Gilar - Zafar, Xaxar and Garadag all host significant ore deposits. The Company is developing these opportunities at pace with JORC mineral resources now published for the Zafar, Gilar and Xarxar deposits. These deposits contain total JORC mineral resources (measured, indicated and inferred) of over 200,000 tonnes of copper and 328,000 ounces of gold. A non-JORC Company estimate for the Garadag deposit contains an "indicated" and "inferred" mineral resource of over 324,000 tonnes of copper.

Sustainability, and minimising the risk of any adverse impact to the environment, is at the core of our business and everything we do. The Company has committed to implement the Global Industry Standard on Tailings Management ('GISTM') by the end of 2026. A sustainability policy has been implemented and the Company is now reporting climate related financial and other information.

Discover more online

For the latest news and investor information, visit the Company's website at

Front cover: New Caterpillar loader at Gilar.

Anglo Asian Mining PLC Annual report and accounts 2023


year ended 31 December 2023

Anglo Asian Mining


Operational highlights

  • Total production for 2023 was 31,821 gold equivalent ounces ("GEOs") compared to 57,618 GEOs in 2022
  • Gold production for 2023 of 21,758 ounces, compared to 43,114 ounces produced in 2022
  • Gold bullion sales in 2023 of
    15,822 ounces (2022: 34,918 ounces) completed at an average of $1,951 per ounce (2022: $1,783 per ounce)
  • Copper production for 2023 was 2,138 tonnes compared to 2,516 tonnes produced in 2022
  • Silver production for 2023 totalled 53,226 ounces compared to 2022 production of 182,046 ounces
  • Gold produced in 2023 at an all-in- sustaining cost ("AISC")*, net of by- product credits, of $1,510 (2022: $1,064) per ounce. Higher AISC in 2023 mainly due to lower production
  • Non-IFRSindicator: see definition in financial review on pages 42 to 47.
  • Including cash in transit and restricted cash used to secure a borrowing.

Financial highlights











Profit/(loss) before taxation










Free cash flow*†










All-in sustaining cost ("AISC")*

($ per ounce)









Net cash/(debt)*†










Operating cash flow before movements in working capital











Anglo Asian Mining

Anglo Asian Mining PLC Annual report and accounts 2023

Anglo Asian Mining at a glance

Anglo Asian Mining is an established and sustainable mining business with a portfolio of wholly owned copper, gold and silver producing and development stage assets in Azerbaijan. These assets are situated on the Tethyan Tectonic belt, one of the world's most significant gold and copper bearing trends.

Azerbaijan contract areas

Azerbaijan is situated in southwest Asia,

bordering the Caspian Sea, with a small

European portion north of the Caucasus



range. Azerbaijan borders Armenia,

Georgia, Iran, Russia and Türkiye, and

is split into two parts by Armenia; the

smaller part is called the Autonomous



Republic of Nakhchivan. Full sovereignty

was restored over the Karabakh region


of Azerbaijan in 2023. The country has

an established democratic government,



which is fully supportive of international

investment initiatives. Infrastructure is

reasonably extensive. Low cost labour

is also available.


Active - Production and exploration


Currently no access

Ordubad Vejnaly

The Group has eight concessions, called contract areas, in Azerbaijan with a total area of 2,544 square kilometres. Gedabek, Gosha, Xarxar and Garadag form a contiguous territory of 1,408 square kilometres which is developing as

a potential copper district. Vejnaly is located in the Zangilan region of Azerbaijan and Kyzlbulag and Demirli are a contiguous territory in Karabakh. Ordubad is in the Nakhchivan exclave of Azerbaijan. Access has not yet been granted to Kyzlbulag and Demirli.

The Group has historically produced gold, copper and silver from its open pit and underground mines at Gedabek. These mines are now very mature and the Group is transitioning to production from its new deposits of Zafar and Gilar situated at Gedabek, and Xarxar and Garadag. Gilar will commence production in the second half of 2024.

JORC minerals resource estimates have now been published for Zafar, Gilar and Xarxar. In total, these deposits contain total JORC mineral resources (measured, indicated and inferred) of over 200,000 tonnes of copper and 328,000 ounces of gold.

  1. non-JORCCompany estimate for the Garadag deposit contains an "indicated" and "inferred" mineral resource of over 324,000 tonnes of copper.

The Group's processing facilities are located at Gedabek. Gold doré is produced by leaching and copper concentrate by flotation. The capacity of the Group's flotation plant was doubled in 2023. Extensive refurbishment and maintenance of the Group's production facilities was also carried out in 2023.

The Group's contract areas are all highly prospective, exploration territory. The Group has a proven track record of mineral discovery having discovered the Ugur, Gadir, Zafar and Gilar deposits in the last eight years.

Gosha and Vejnaly both host existing underground mines built in the Soviet era. Exploration is carried out at these two locations.

Anglo Asian Mining PLC Annual report and accounts 2023

Anglo Asian Mining


Azerbaijan contract areas


300 square kilometre

Gedabek is the main production asset of the Group. It hosts the Gedabek open pit and the contiguous Gedabek and Gadir underground mines. Gilar,

a new copper-gold mine, will commence production in the second half of 2024. The Zafar deposit is also located at Gedabek but is not currently being developed as the Company is currently focused on bringing Gilar into production. All processing facilities are currently located at Gedabek which comprise an agitation leaching plant, a flotation plant and SART processing. The capacity of the flotation plant has been doubled in 2023. Heap leaching is also carried out using both crushed and ROM ore.

Gedabek is now a very mature site with excellent road access, power from the Azeri national grid and a water treatment plant. Only minimal capital expenditure is now required to sustain its operations. Mining and exploration rights are until March 2027 which can be extended for a further five years.

The Company's tailing management facility is situated approximately 4.5 kilometres from the Company's processing facilities at Gedabek and is a downstream rock

fill embankment. There have been four construction phases and a final wall raise will be carried out which is awaiting the approval of the Government of Azerbaijan. The Company has committed to implement the Global Industry Standard on Tailings Management ('GISTM') by the end of 2026.


464 square kilometre

Xarxar is situated 1.5 kilometres from the northern boundary of the Gedabek contract area.

Extensive geological fieldwork was carried out in 2023 including core drilling from both surface and underground.

An exploration portal has been constructed and the underground tunnel developed. The historic data acquired in 2022 from the previous owner of the deposit was also extensively analysed. A JORC mineral resource estimate has been announced containing total JORC mineral resources of 119,100 tonnes

of copper.

The Xarxar contract area extends the Gedabek contract area to the north. The Gilar mine is situated within the Gedabek contract area close to its northern boundary. Geological exploration indicates that the Gilar deposit trends to the north into the Xarxar contract area. The Xarxar contract area will therefore enable the Gilar deposit to be fully mined.


344 square kilometre

Garadag abuts the northern boundary of Xarxar and hosts the Garadag deposit. Garadag has been extensively explored since the end of the Soviet era by its previous owners.

In 2022, the Group acquired the historical geological exploration and other data of the previous owners of the deposit. The data included 9,645 chemical assays taken from 23,454 metres of drill core which have been transferred to the Group. The data also included geochemical and geophysical data, including maps and interpretative reports.

No geological fieldwork was carried out in 2023. However, extensive collating and analysis was carried out of the historical data which was acquired.

  1. non-JORCCompany estimate for the Garadag deposit contains an "indicated" and "inferred" mineral resource of over 324,000 tonnes of copper. A JORC mineral resource estimate for Garadag will be published later in 2024.


Anglo Asian Mining

Anglo Asian Mining PLC Annual report and accounts 2023

Anglo Asian Mining at a glance continued

Azerbaijan contract areas continued


300 square kilometre

Gosha is situated in western Azerbaijan, 50 kilometres northwest of Gedabek. Gosha is the location of a high grade, underground gold mine. Ore mined at Gosha is transported by road to Gedabek for processing. No mining was carried out in the Gosha mine in the year ended 31 December 2023.

"Hasan", a new sub-vertical high gold grade mineralised vein, immediately south of the existing Gosha mine has recently been discovered. Hasan can be accessed via a short tunnel from the existing tunnelling at Gosha. A further vein close to Hasan called "Akir" is also showing promising mineralisation.

The Group is also carrying out geological fieldwork at Asrikchay, a copper and gold target situated in the northeast corner of the Gosha Contract Area, about 7 kilometres from the Gosha mine, within the Asrikchay valley.


300 square kilometre

Vejnaly is a 300 square kilometre contract area located in the Zangilan district in southwest Azerbaijan. It borders Iran

to the south and Armenia to the west. It hosts the Vejnaly deposit.

There are both open pit and underground workings and the main ore body was extensively mined during the Armenian occupation. There is also an existing crusher and flotation processing plant at the mine which will need extensive renovation to recommence operation. A camp is now established at Vejnaly and approximately 30 full time employees, who are mainly geologists, are exploring in the vicinity of the existing mine.

There was no mining or production at Vejnaly in 2023. Minor amounts of ore are being extracted from the underground mine as the geologists clean out and rehabilitate the tunnels as part of their exploration. This ore will be transported to Gedabek for processing.


462 square kilometre

Ordubad is an exploration area in Nakhchivan, southwest Azerbaijan, which contains numerous targets. Geology suggests that the area is favourable for porphyry formation. Targets include Shakadara (gold), Dirnis (copper and silver prospect), Keleki (gold prospect), Destabashi (copper prospect) and Aylis.

Limited exploration at Ordubad restarted in 2023.

Anglo Asian Mining PLC Annual report and accounts 2023

Anglo Asian Mining



462 square kilometre

Kyzlbulag is in Karabakh. It contains

several mines and has excellent potential

for exploration, as indicated by the

presence of many mineral deposits and

known targets in the region.

Kyzlbulag together with Demirli contain

the Demirli mine. There are indications

that up to 35,000 ounces of gold per

year were extracted from the Demirli

copper-gold mine, before the mine was

closed several years ago, indicating the

presence of a gold mineralising system.

The Government of Azerbaijan restored

its sovereignty over Karabakh in 2023.

It will use all reasonable endeavours to

ensure that the Company has physical

access to the region.


74 square kilometre

The Demirli deposit is adjacent to the

Kyzlbulag contract area and expands the

Kyzlbulag contract area to the northeast.

The Government of Azerbaijan restored

its sovereignty over Karabakh in 2023.

It will use all reasonable endeavours to

ensure that the Company has physical

access to the region.

Although access has not been granted

to the contract area, a technical team

from the Company was allowed to visit

the Demirli mine and processing plant

in March 2024.


The Company's main production site is at its Gedabek contract area which is close to the town of Gedabek in western Azerbaijan. Gedabek town has undergone a large amount of economic growth and development as a result of the mining now taking place in the area. Previously an impoverished upland town, Gedabek is now a thriving community and is the location of many diverse businesses. A new town community centre has been built together with other communal buildings. The Company actively promotes economic activity in the region and has sponsored activities such as beekeeping and carpet weaving.


Anglo Asian Mining

Anglo Asian Mining PLC Annual report and accounts 2023

Our growth strategy

Anglo Asian Mining remains committed to implementing its medium-term growth strategy of transitioning to a multi-asset,mid-tier producer, with copper becoming the Company's principal commodity. Certain parts of this strategy, including the completion of JORC mineral resource estimates for the Xarxar and Gilar deposits, have now been successfully completed.

Having operated successfully in Azerbaijan for over 20 years, the Company has developed high quality production and development assets. The acquisition of three new contract areas, Garadag, Xarxar, and Demirli, in July 2022 strengthens the foundation of our growth strategy and supports our evolution into a mid-tier copper producer. While acknowledging a delay due to the Micon environmental review and partial suspension of processing, the strategic plan remains firmly in place with an assumed slippage of one year. However, the Company believes some of this time will be made up. With three of the four key deposits in the Gedabek area now possessing JORC-compliant mineral resource estimates, the Company is focused on maintaining momentum with its long-term transition.

The growth strategy comprises two phases. In the initial phase ('transition'), the Company will manage production at the currently operating Gedabek and Gadir mines as they approach the end of their anticipated operational lives. Simultaneously, the Company will start production at two new mines, Gilar and Xarxar, between 2024 and 2027. Production has also been

assumed to start at Zafar from 2026. However, the start up of Zafar may not be necessary, dependant upon the final mine life of the Gedabek open pit.

The second phase ('transformation') will see the Company develop Garadag, which is projected to produce over 300,000 tonnes of copper and is expected to commence production in 2028 to 2029.

The Company has revised its goal of increasing its production of gold equivalent ounces by 30 to 50 per cent. to 70,000 to 75,000 to 2025 and 2026. It now targets a rise in copper equivalent production to approximately 36,000 plus tonnes per annum (gold equivalent of 175,000 ounces) from 2029.

As part of its growth strategy, the Company's primary output will shift to copper from gold, with copper becoming the majority contributor to revenue by 2027. As a critical metal for the global energy transition, the board of Anglo Asian Mining is confident the Company's shift to copper production will generate sustainable, long-term value for all stakeholders.

Production target ranges (2024 to 2029)


Circa 150 per cent. total

production growth

175,000 175,000






30-50 per cent. total






production growth





















Phase 1 ('transition')

Phase 2 ('transformation')

Lower end of target range  Higher end of target range

Transition from gold to copper through new mine construction

Copper production (tonnes)
















Zafar  Gedabek  Garadag  Gilar  Xarxar 

  • These production amounts are from the strategic plan. Guidance has not yet been issued for the year ending 31 December 2024.

Anglo Asian Mining PLC Annual report and accounts 2023

Chair's statement and Chief Executive's review


Chairman's statement

"...the Board remains confident that the underlying business is strong, with a seasoned and highly motivated team and a blue-chip portfolio of assets with the capability to achieve our ambitious medium-term strategy of transitioning to a mid-tiercopper-focused producer."

Khosrow Zamani

Non-executive chairman

Undoubtedly 2023 was a challenging year for Anglo Asian Mining, with production partially suspended for the last four months

of the year due to the environmental audit of our Gedabek tailings dam and whilst we were waiting for the approval of the Government of Azerbaijan (the "Government") to raise the tailings dam wall. However, the Board remains confident that the underlying business is strong, with a seasoned and highly motivated team and a blue-chip portfolio of assets with the capability to achieve our ambitious medium-term strategy of transitioning to a mid-tiercopper-focused producer.

of the Company and provide increased insights regarding the development plans for these assets.

Another key pillar of the growth strategy is commencement of production from the Gilar mine. Development is well underway with production due to start by the end of 2024. We have also procured, with vendor finance, a Caterpillar underground mining fleet. The delivery of the fleet to Gedabek was a significant milestone, and was Caterpillar's first delivery of this type of underground equipment to Azerbaijan and the broader Caucasus region.


During the year, the Company produced 31,821 gold equivalent ounces ("GEOs"), which was in the mid-range of the revised production guidance of 30,000 to 34,000 GEOs. Production was expected to decline in 2023 as the Company was only mining from its Gedabek open pit and Gedabek and Gadir underground mines, which all have falling grades as they approach the end of their lives. However, the decrease was more than anticipated due to the lost production caused by the suspension of flotation and agitation leaching from August to December 2023. The Group will not issue production guidance for 2024 until it receives approval to raise the tailings dam wall.

Progress of our strategic growth plan

In March, we announced our medium-term growth strategy, which envisages Anglo Asian Mining more than doubling its production within the next five years as we transition to a multi- asset, mid-tier producer, with a portfolio dominated by copper. The completion of this strategy was a significant achievement, and I would like to thank the entire management team for their hard work and dedication in developing it. The environmental audit and partial suspension of processing has led to certain implementation delays to the growth strategy. However, we are entirely focused on, and confident of, still achieving mid-tier production in the medium term and delivering the associated considerable shareholder value.

A key pillar of our strategic plan is the preparation of mineral resource estimates for our mineral deposits to the JORC standard. We have been successful in this regard and have now published JORC mineral resource estimates for three of our assets under development, Gilar, Zafar and Xarxar. We will be publishing the JORC mineral resource estimate for Garadag later in the year. These mineral resources guarantee the long-term future

Micon environmental audit

Following protests by local residents at our tailings dam, at the request of the Government, Micon International Co Limited ("Micon") carried out a health, safety and environmental review of tailings management at the Gedabek site in late July. The review was carried out under the auspices of the Ministry of Ecology and Natural Resources of Azerbaijan. The Company's local environmental engineers, CQA International, and its independent tailings management consultant Knight Piésold, assisted in the review. The environmental audit, which measured multiple environmental factors in detail, including water samples, soil samples, and air quality, confirmed there were no issues, with our operations operating well within international guidelines. Following the finalisation of the report, the Government gave us permission to restart operations

in September.

We are fully implementing the report's recommendations, including improving our emergency response capabilities, strengthening our environmental monitoring and documentation, and enhancing how we engage and communicate with local communities.

Kyzlbulag and Demirli contract areas

Azerbaijan resumed full sovereignty over Karabakh in 2023 and the Russian peacekeepers have recently left the territory. The Company has not yet been granted access to its contract areas in Karabakh. However, preliminary discussions have started with the Government regarding access and commencing production from the assets situated in the contract areas.

The Company has started obtaining and collating various documentation regarding the assets in our contract areas in Karabakh and a technical team have recently visited the Demirli processing plant.


Chair's statement and Chief Executive's review

Anglo Asian Mining PLC Annual report and accounts 2023

Chairman's statement continued

Geological team working in the drill core shed at Gedabek

Sustainability and climate reporting

Sustainability and upholding the best principles of Environmental, Social and Governance ("ESG") are of the utmost importance to the Company and are fundamental to how we operate and make key decisions.

During early 2024, we established a Sustainability Committee, which will oversee activities related to sustainable development and social responsibility and is chaired by non-executive director, Professor John Monhemius. This committee will also be responsible for overseeing the Company's activities with respect to mitigating climate risks. We are determined to deliver real progress in this area and the committee will help spearhead our efforts as we continue to uphold industry best practice standards. For example, the Company has recently committed to full compliance with the Global Industry Standard on Tailings Management ('GISTM') and we are currently in the process

of collating the required information and putting in place the necessary requirements, and we aim to achieve full GISTM compliance by 2026. We are also pleased to disclose our climate related risks and opportunities in line with the Task Force on Climate-Related Financial Disclosures ("TCFD") reporting framework for the first time this year.

Libero Copper & Gold Corporation ("Libero")

Libero had a poor year as it struggled to raise finance without drilling permission for its Mocoa property. After two follow-on investments in January and February, we decided not to invest further in Libero. An impairment provision of $5 million was recorded against our investment at the end of 2023. In early 2024, our interest fell to approximately 5.7 per cent. Libero has so far proved a disappointing investment. However, Libero has recently been restructured and refinanced and is under new management. We believe Libero still has the ability to create material shareholder value.

Dividend and going concern

The partial suspension of processing has, as you would expect, put a strain on the finances of the Company. However, the Company still continues to generate revenue from its heap leach and SART operations and is exercising extremely stringent cost control to weather this difficult period.

Given the partial suspension of production and the loss for the year, the Company does not intend to pay a dividend for 2023. However, the Company's reputation as a reliable dividend payer is important to the directors, who fully intend to resume dividend payments once conditions allow.

The Group's financial statements contain two material uncertainties as to going concern; whether permission will be obtained from the Government to raise the wall of the tailings dam; and obtaining further finance from banks in Azerbaijan. These uncertainties have arisen because these exercises had not yet been completed at the date of signing the financial statements. Work on completing these tasks is ongoing and progressing well and the Government and banks in Azerbaijan are being supportive. We are also actively exploring other sources of non-equity finance. We are therefore confident that the permission to raise the tailings dam wall and further finance will both be obtained in the short term.

UN Climate Change Conference in Baku in November 2024 ("COP 29")

As I am sure everyone is aware, COP 29 will be held in Baku in November 2024. Preparations for the conference are well underway with some governments already establishing staff resources in Baku in advance of the conference. The Company welcomes this opportunity for Azerbaijan to showcase its capital city and, as a significant business in Azerbaijan, it intends to fully participate in the conference where appropriate.

Annual General Meeting

We encourage shareholders to attend our Annual General Meeting, the details of which are set out on pages 121 and 122 of this annual report. The directors welcome all shareholders to attend and look forward to meeting as many of you as possible.


Despite a very challenging year, the Board remains excited by Anglo Asian's growth prospects. The resilience displayed during the year is a testament to the strength of the business, and we look forward to returning to full production and continuing to generate value for our stakeholders.


I would like to take this opportunity to thank the employees of Anglo Asian Mining, our partners, the Government of Azerbaijan, and our advisers for their continued support. I would also like to sincerely thank our shareholders for their continued commitment to the Company. I look forward to a better 2024 and to sharing our future successes with you all.

Khosrow Zamani

Non-executive chairman 15 May 2024


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Anglo Asian Mining plc published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 06:31:01 UTC.