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Azergold's revenues from sales of precious metals hit $289.9m

26 September 2020 [10:00] - TODAY.AZ

By Azernews

By Ayya Lmahamad

Revenues of Azerbaijan’s gold mining company Azergold CJSC from export of precious metals amounted to AZN 493 million ($289.9M) during the four years of company’s activity, the Ministry of Economy has reported.

The company exported over 202,000 ounces of gold and over 350,000 ounces of silver from Chovdar mine during four years of its activity.

Of these funds, AZN 36.7 million were transferred to the state budget in the form of taxes and social payments.

Moreover, the company’s net profit amounted to AZN 35 million ($20.5M) during the years 2016-2019, of which AZN 15 million (8.8M) were directed to increase the charter capital.

Gold mining in Azerbaijan is currently carried out by two companies - AzerGold CJSC, which owns 51 percent in Azerbaijan’s gold share, and Anglo Asian Mining PLC, with 49 percent of shares.

Extraction of the first gold in Azerbaijan started in 2009, and silver in 2010.

“AzerGold” CJSC is a national mining company, which was established on February 11, 2016 according to the presidential decree.

It should be noted that AzerGold increased its revenues from the sale of gold and silver in the first eight months of 2020. Thus, the company’s revenues increased by $16 million or 32 percent in the reporting, amounting to $68.5. During the reporting period, AzerGold produced 39,312 ounces of gold, which is by 4,752 ounces or 14 percent more than initially planned. The production volume increased due to optimization works in production and introduction of new technological methodologies.

The company recently started geophysical and geological exploration in the country’s Dashkasan iron ore deposit with a proven reserves of 270 million tons. In August, President Aliyev ordered to allocate AZN 3 million ($1.7M) from the state budget of 2020 to AzerGold to begin preparation of the primary document of assessment of the Dashkesan iron ore deposit.


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