Group 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.

Further information on the strategy can be found below:

30 March 2023

Medium-Term Growth Strategy

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