*Record nine-month copper output confirms Anglo Asian's shift to a majority copper producer, but investors shrug as the good news was already priced in.*
Anglo Asian Mining (AIM: AAZ) said quarterly copper production more than doubled year-on-year as its new Demirli mine in Azerbaijan ramps towards full output, with the company now describing itself as a majority copper producer. Third-quarter copper production reached 5,514 tonnes, up from 5,129 tonnes in the second quarter and more than double the 2,288 tonnes produced a year earlier, taking nine-month output to a record 14,354 tonnes, over four times last year's level. Shares were little changed on Thursday.
The muted share reaction suggests the market had already priced in much of the good news following a strong run in the stock earlier this year, with the update serving to confirm rather than extend that rally. Gold production held broadly steady while silver output rose, and the company benefited from higher precious metals prices, selling gold at an average of $4,259 an ounce against $3,430 a year earlier.
Copper concentrate sales from the quarter totalled $80.5m, with the ramping Demirli operation now accounting for the majority of that revenue. The company ended the period with $56.5m in cash, underlining the financial firepower it has to continue developing the asset.
Anglo Asian reiterated full-year guidance of 20,000 to 25,000 tonnes of copper and said it remains well positioned to grow into a mid-tier copper producer as Demirli output builds further. Chief executive Reza Vaziri said the mine's ramp-up remained on track.
Management expects Demirli to reach full production by the end of November, a milestone investors will watch closely to confirm the guidance range is achievable. With the shares already reflecting much of this year's operational progress, the next meaningful catalyst is likely to be delivery against that year-end production target rather than incremental quarterly updates.
This report is based on Anglo Asian Mining’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Dion Beetson on Unsplash.
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