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(Sharecast News) - Anglo Asian Mining has begun sales of copper concentrate from its new Demirli mine in Azerbaijan and reported record monthly ore output at the site on Thursday, marking a further step in its plans to expand production.
The AIM-traded miner said it sold 2,055 wet tonnes of copper concentrate containing 351 tonnes of copper metal to Trafigura between 17 and 30 November, generating provisional gross revenue of $3.6m before the government's share.
It said the sales followed a contract signed with the commodities trader earlier this month.
To support the offtake, Anglo Asian had established a logistics centre at Dalimammadli near Ganja, close to the main Azerbaijan-Georgia highway.
The facility included 3,500 square metres of enclosed storage and a further 1,500 square metres of roofed storage within a seven-hectare fenced area.
Company trucks transport concentrate from Demirli to the site, meaning Trafigura vehicles did not need to enter Karabakh, where access is restricted.
Chief executive Reza Vaziri said the partnership was central to the company's expansion plans.
"We are continuing to make great progress at the Demirli mine, which was brought into production on time and on budget, and we have now completed our first copper concentrate sales to Trafigura," he said.
"We continue to invest in this relationship, which is strategically important for Anglo Asian, by establishing our new logistics centre which will drive significant efficiencies."
The company also reported record material movement at Demirli in November, with 1.95m tonnes of rock mined.
That included 195,384 tonnes of flotation ore grading 0.54% copper, 269,013 tonnes of oxide ore at 0.22% copper and 6,115 tonnes of low-grade ore, while 1.48m tonnes of waste was used to reinforce the tailings dam wall.
Anglo Asian said 81,000 tonnes of rock were mined and hauled on 27 November alone, the highest daily figure to date.
"With Demirli delivering in accordance with our expectations, and in line with our strategy to grow production, we are also delighted to have recently achieved record daily and monthly quantities of ore mined at Demirli," Vaziri added.
At 1405 GMT, shares in Anglo Asian Mining were flat at 240p.
Reporting by Josh White for Sharecast.com.