Transitioning to mid-tier copper production status

Anglo Asian Mining PLC

Annual report and accounts 2022

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 57,618 gold equivalent ounces in the year ended 31 December 2022. The Company has a well-defined strategy to become a mid-tier copper producer. It has two new copper; and copper and gold mines under development, Zafar and Gilar, which will both open in 2023.

In July 2022, amendments to its production sharing agreement became law in Azerbaijan which granted the Company three additional contract areas with a combined area of 882 square kilometres. These contract areas host the Garadag porphyry copper deposit with a Soviet classified resource of over 300,000 tonnes of copper and the Demirli copper-molybdenum mine in Karabakh.

The Company also holds approximately 19.8 per cent of Libero Copper & Gold Corporation ("Libero"). Libero is listed on the TSX Ventures Exchange in Canada and owns, or has the right to acquire, several copper exploration properties in North and South America. These include Mocoa in Colombia, one of the world's largest undeveloped copper-molybdenum resources.

Front cover: Portal of new Gilar mine.

Highlights and dividend

year ended 31 December 2022

Operational highlights

•

Total production for 2022 was 57,618

gold equivalent ounces ("GEOs")

compared to 64,610 GEOs in 2021

•

Gold production for 2022 of 43,114

Financial highlights

Revenue

All-in sustaining cost

($m)

("AISC")* ($ per ounce)

ounces, compared to 48,680 ounces

produced in 2021

• Gold bullion sales in 2022 of

34,918 ounces (2021: 39,563 ounces)

completed at an average of $1,783

per ounce (2021: $1,799 per ounce)

• Copper production for 2022

was 2,516 tonnes compared to

2,649 tonnes produced in 2021

• Silver production for 2022 totalled

182,046 ounces compared to 2021

production of 154,515 ounces

• Gold produced in 2022 at an all-in-

sustaining cost ("AISC")*, net of by-

product credits, of $1,064 (2021: $843)

per ounce. Higher AISC in 2022 mainly

92.1

102.1

92.5

84.7

2019

2020

2021

2022

1,064

843

591

702

2019

2020

2021

2022

due to lower production.

Dividend per share for 2022

  • Interim dividend of 3.559 pence
    (US 4.0 cents) paid on 3 November 2022
  • Final dividend of US 4.0** cents will be paid on 27 July 2023
  • Shareholders' record date of 30 June 2023 and shares will go ex-dividend on
    29 June 2023
  • Payable in Sterling at the average United States Dollar to pounds Sterling rate on the five days from 3 to 7 July 2023

Profit before taxation

($m)

35.7

30.1

12.6

7.5

2019

2020

2021

2022

Net cash*†

($m)

38.8

37.5

21.2

20.4

2019

2020

2021

2022

US cents

2021

2022

Interim paid

4.5

4.0

Final paid/proposed

3.5

4.0**

Total for the year

8.0

8.0

Free cash flow*†

($m)

25.5

28.7

12.2

-3.8

2019

2020

2021

2022

Operating cash flow

before movements in working capital ($m)

50.5

52.8

29.3

27.2

2019

2020

2021

2022

  • Non-IFRSindicator: see definition in financial review on pages 33 to 37.
  • Subject to approval at the annual general meeting.
  • Including cash in transit.

Anglo Asian Mining PLC Annual report and accounts 2022

01

Anglo Asian Mining

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 assets in Azerbaijan. These assets are situated on the Tethyan Tectonic belt, one of the world's most significant gold and copper bearing trends.

The Group has eight concessions called contract areas in Azerbaijan with a total area of 2,544 square kilometres. Five of the contract areas were acquired in 1997 and three additional contract areas, Xarxar, Garadag and Demirli, were acquired in 2022.

The contract areas encompass highly prospective exploration territory through to mature assets in production. Access has not yet been granted to the Kyzlbulag and Demirli contract areas which are located in the Karabakh economic region.

Gold, silver and copper are mined at Gedabek which is also the location of the Group's main processing facilities. Gold doré is produced by leaching and copper concentrate by flotation. Two new copper and copper-gold mines, Zafar and Gilar are currently under development at Gedabek.

Xarxar and Garadag, which adjoin Gedebek, are known to host significant copper deposits. The previous owners of the contract areas carried out considerable exploration and the historic data has been acquired by Anglo Asian Mining.

Gosha and Vejnaly both host existing underground mines built in the Soviet era. Exploration and small-scale production are carried out at these two locations.

Anglo Asian is expanding internationally and owns approximately 19.8 per cent. of Libero Copper & Gold Corporation ("Libero") which is listed on the Toronto TSX stock exchange. Libero holds a portfolio of copper exploration projects in the Americas.

Anglo Asian has been listed on AIM since 2005, is profitable and has paid regular dividends since 2018.

Azerbaijan contract areas

Active - Production

and exploration

  Exploration

Gosha

  Currently no access

Xarxar

Demirli

AZERBAIJAN

Garadag

Gedabek

Baku

Kyzlbulag

Ordubad Vejnaly

Azerbaijan is situated in south-west Asia, bordering the Caspian Sea, with a small European portion north of the Caucasus range. Azerbaijan borders Armenia, Georgia, Iran, Russia and Turkey and is split into two parts by Armenia; the smaller part is called the Autonomous Republic of Nakhchivan. 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.

Libero Copper & Gold corporation

 1

Big Red

 1

Big Bulk

Canada

 2

Mocoa

3 Esperanza

Colombia

San Juan,

Argentina

 2

Libero is a Canadian company listed on the TSX Venture Exchange,

and holds a collection of porphyry copper deposits throughout

the Americas in prolific,

but stable, mining-friendly jurisdictions.

Michael Sununu was appointed to the board of Libero in January

 3

2022. In addition, a technical committee with representatives of both

companies has been established, which will determine Libero's future exploration strategy.

02 Anglo Asian Mining PLC Annual report and accounts 2022

Anglo Asian Mining

Azerbaijan contract areas

Gedabek

300square kilometre

Gedabek is the main production site of the Group. It hosts the Gedabek open pit and the contiguous Gedabek and Gadir underground mines. Two new mines are now under development at Gedabek, the Zafar copper mine and the Gilar copper-gold mine. 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 is being doubled in 2023. Heap leaching is also carried out and a new heap leach pad with a capacity of three million tonnes has recently been constructed.

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.

A new tailings dam is being constructed in the vicinity of the existing dam which is nearing full capacity. A smaller tailings dam is also under construction near the plant to provide auxiliary tailings storage whilst the new dam is being constructed.

An extensive exploration programme is underway which is yielding positive results. This has resulted in the discovery of the Zafar and Gilar deposits in the last two years.

Gosha

300square kilometre

The location of a small, high grade, underground mine. Ore mined at Gosha is transported by road to Gedabek

for processing. Gosha is regarded as under explored.

A new sub-vertical high gold grade mineralised vein was discovered by surface drilling at the Gosha underground mine during 2021 which has been named "Hasan". It is immediately south of the existing Gosha mine. The new gold vein can be accessed via a short tunnel from the existing tunnelling at Gosha. Modest production is planned from the vein in 2023.

Ordubad

462square kilometre

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.

No geological field work was carried out at Ordubad during 2022 as the COVID-19 restrictions prevented drill access to the area. A small geological team remained active at the location and geological re-logging of previously drilled core samples continued. Exploration has been restarted in 2023.

Anglo Asian Mining PLC Annual report and accounts 2022

03

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Anglo Asian Mining plc published this content on 31 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2023 09:19:32 UTC.