Anglo Asian Mining Returns to Profitability as New Mines Drive H1 Growth

Anglo Asian’s H1 2025: profits return, copper steps centre stage, and two new mines switch on

Anglo Asian Mining has posted a sharp turnaround for the six months to 30 June 2025. Revenues jumped to $40.9 million from $13.4 million a year ago, swinging to a profit before tax of $7.1 million from a $5.5 million loss. Cash generation improved too, with $11.4 million net cash from operating activities. In simple terms: production is back, prices helped, and the strategy is taking hold.

Two headlines dominate. First, Gilar, the new underground mine at Gedabek, entered production in May. Second, Demirli, a major copper open pit with an adjacent flotation plant, began producing in July (post period). Together, these underpin Anglo Asian’s pivot to copper and its medium-term plan to become a mid-tier producer.

Key numbers that matter to investors

Metric	H1 2025	H1 2024
Revenue	$40.9 million	$13.4 million
Gross profit / (loss)	$13.8 million	$(1.7) million
Profit / (loss) before tax	$7.1 million	$(5.5) million
Net cash from operating activities	$11.4 million	$3.2 million
Capital expenditure	$8.0 million	$6.3 million
Net debt (ex leases, incl. Trafigura advance)	$13.1 million	31 Dec 2024: $14.7 million
Gold sales	9,781 oz at $3,077/oz	6,000 oz at $2,174/oz
Copper concentrate sales	$10.4 million	$0.5 million
Total production	16,378 GEOs	5,270 GEOs

Production rebound driven by Gilar and a stronger plant performance

Total output rose to 16,378 gold equivalent ounces, with 12,115 ounces of gold, 1,188 tonnes of copper, and 62,354 ounces of silver. Crucially, all processing facilities ran continuously, which was not the case last year. The copper contribution is unmistakable: copper concentrate sales rose to $10.4 million from $0.5 million.

Gilar made a meaningful early contribution. In H1, the mine produced 106,510 tonnes of ore grading 0.99% copper and 1.23 g/t gold. Grades were actually higher than expected, which is great for value but has temporarily clogged the thickener and filter press on the flotation circuit. Anglo Asian has responded by processing lower to medium grade ore now and stockpiling the hotter stuff. The plant upgrade is underway and expected to complete before year end.

Demirli: the copper growth engine switches on

Post period, Demirli entered production in July 2025. Management expects approximately 4,000 tonnes of copper in concentrate in 2025, with a ramp-up to around 15,000 tonnes per annum from 2026. A lease has been agreed with AzerGold for the Demirli flotation plant.

Demirli lease – what you need to know

• Annual base rent of $24 million, with a floor of $15 million a year if 75% of revenue less operating and capital costs is below $24 million.
• If 15% of revenue in a year exceeds $28 million, rent becomes 15% of revenue less $4 million, subject to conditions.
• Rent is treated as recoverable cost under the production sharing agreement and is tax deductible, significantly reducing its earnings and cash flow impact.
• Until the lease formally commences (expected by year end), the plant can be used for testing without payment, but any concentrate produced cannot be sold.

Investor take: the rent headline looks chunky, but the PSA treatment softens the blow. Timing is the swing factor for 2025 cash realisations – sales from Demirli rely on the lease commencement.

Guidance held back for good reasons

Full-year 2025 production guidance will be issued later in the year. Two moving parts explain the pause: how much Demirli ships in 2025 and the flotation plant upgrade to handle Gilar’s higher copper grades. Both are sensible gating factors. Expect a clearer read once plant upgrades complete and the Demirli lease kicks in.

Balance sheet, cash, and funding headroom

Operating cash flow of $11.4 million covered $8.0 million of capex, and net debt edged down to $13.1 million at 30 June 2025. Cash was $5.3 million, plus $6.0 million of restricted cash. The group also had a $4.5 million prepayment outstanding from Trafigura for concentrate sales and access to an AZN 55 million general credit agreement with IBA.

Finance costs ticked up to $1.7 million on higher borrowing costs. Post period, the company received a waiver on a Caterpillar financing covenant and complied with the net debt to EBITDA covenant. No interim dividend was declared, which is consistent with funding a multi-asset build-out and resolving technical distributable reserve issues ahead of the 22 October 2025 General Meeting.

Strategy check: copper-led growth, multi-asset pipeline

Anglo Asian’s plan is to transition into a copper-focused, mid-tier producer by 2030, targeting around 50,000 to 55,000 tonnes of copper per year. The pipeline to get there is taking shape:

• Gilar – now producing, with a maiden JORC resource totalling 53.9 thousand tonnes of copper and over 255 thousand ounces of gold.
• Demirli – producing, with an internal resource estimate below the current pit of 238,966 tonnes of copper and scope for further additions.
• Xarxar – JORC resource of 119.1 thousand tonnes of copper, on track for first production in 2027/28.
• Garadag – a large JORC resource at 896.9 thousand tonnes of copper, targeting production in 2029.

Overlay that onto a rising copper production mix already visible in H1, and the direction of travel is clear.

ESG and operations housekeeping

Anglo Asian received an inaugural BB rating from Digbee at both corporate level and for Gedabek. It is a credible baseline with room for improvement, which the company acknowledges. On the operational side, tailings capacity at Gedabek is being increased via a final wall raise, due to complete in the first half of 2026, and a second tailings dam site is being progressed.

What I like, and what to watch

Positives

• Return to profit – $7.1 million PBT on $40.9 million revenue shows the assets work when plants run continuously.
• Two new mines online in one year without equity dilution – significant execution milestone.
• Copper mix rising – $10.4 million copper concentrate sales and Demirli’s 2026 trajectory align with the strategy.
• Cash generative – $11.4 million operating cash flow funded $8.0 million capex and reduced net debt.
• PSA economics provide a cushion on Demirli plant rent through cost recovery and tax deductibility.

Watchpoints

• Demirli lease start – until formal commencement, test concentrate cannot be sold. That affects 2025 sales timing.
• Gilar plant upgrade – higher grades are a nice problem to have, but upgrades must complete as planned before year end.
• No interim dividend – unsurprising, but income investors will take note until the distributable reserves housekeeping is resolved.
• Higher finance costs – $1.7 million in H1 is manageable, but debt service needs production to keep ramping.
• Guidance timing – clarity later in 2025 will be a catalyst.

Bottom line

This is a proper reset. Production recovered, profitability returned, and the copper growth story is moving from PPT to plant. Gilar and Demirli are the right assets at the right time, with meaningful copper volumes coming through 2026. The near-term hinges on two operational milestones – Demirli lease commencement and completion of the flotation upgrades – after which guidance and cash flow visibility should improve.

For investors, H1 shows Anglo Asian can fund growth from operations, steadily de-risk the balance sheet, and build out a multi-asset, copper-led portfolio. Delivery through H2 and into 2026 is now the focus.