Profits at gold and copper producer Anglo Asian Mining have plummeted, falling two-thirds from $35.7m to $12.6m in its latest full-year results.
Revenues have also declined from $102.1m to $92.5m in 2021, while cash flow also dipped from $52.8m to $29.3m.
The company suffered from cost inflation and lower output levels at its key facilities in Azerbaijan, while sustaining costs per ounce of gold production increased to $843 from $702.
Overall, gold production levels have dropped over the 12-month period, slipping from 56,864 ounces to 48,680 ounces.
This was not reflected across its metal output though, with copper production rising two per cent to 2,649 tonnes from 2,591 in the previous year, while silver production has spiked to 154,515 ounces from 122,962 ounces.
Nevertheless, its disappointing headline performance has been reflected in its share price, which has nosedived 6.4 per cent on the FTSE AIM-All Share.
Bill Morgan, chief financial officer at Anglo Asian Mining, told City A.M. that its downturn in performance characterised its transitional period from a one-site company in Azerbaijan to a miner with multiple operations globally.
Since the nineties, its operations have focused on its Gadea mine, but with gold dwindling at the site, it has looked to expand into new projects.
He said: “This is why you profits are down because we’re getting lower gold grades, but now we all have these new mines that we’ve got coming along.
This ambition has been reflected in a flurry of acquisitions and investments.
Deals includes agreements with the government of Azerbaijan for three new contracted development, a production sharing agreement at Gedabek (a key site for the company) and a $2.2m investment in a 19.8 per cent stake in the Canadian miner, Libero Copper & Gold Corporation.
Morgan concluded: “We think the company is is really going to move forward to another stage of development, going from being predominantly a gold producer at one site to being a multi site, major copper producer in Azerbaijan and around the world.”