| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 48.30 | -84 |
| Intrinsic value (DCF) | 44.00 | -85 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.60 | -100 |
Anglo Asian Mining PLC (AAZ.L) is a London-listed mining company focused on gold, copper, and silver production in Azerbaijan. The company operates primarily at the Gedabek mine, a key asset in its 2,500 square kilometer portfolio of mineral-rich properties in western Azerbaijan. As a mid-tier gold producer, Anglo Asian Mining plays a strategic role in Azerbaijan's mining sector, contributing to the country's natural resource exports. The company's vertically integrated operations span exploration, development, and production, with a focus on cost-efficient mining methods. While gold remains its primary revenue driver, its copper and silver byproducts provide additional commodity exposure. Anglo Asian Mining's operations are geographically concentrated in Azerbaijan, presenting both regional expertise and geopolitical considerations. The company faces typical mining industry challenges including commodity price volatility, operational risks, and environmental regulations. Its London listing provides access to international capital markets while maintaining a strong operational focus in the Caucasus region.
Anglo Asian Mining presents a specialized investment proposition as a Azerbaijan-focused precious metals producer. The company's FY2023 financials show challenges with a net loss of £24.2 million on revenues of £45.9 million, though it maintained positive operating cash flow of £0.9 million. With a market cap of approximately £154 million and low beta of 0.41, the stock may appeal to investors seeking gold exposure with lower volatility than many mining peers. Key risks include single-asset concentration (Gedabek mine), geopolitical exposure to Azerbaijan, and negative earnings in the reported period. The lack of dividends and significant capital expenditures (£25.3 million) suggest the company is prioritizing operational investments over shareholder returns. Investors should weigh the company's established production base against its financial performance and regional concentration risks.
Anglo Asian Mining occupies a niche position in the gold mining sector as a mid-tier producer with concentrated geographic focus. The company's competitive advantage stems from its first-mover position in Azerbaijan's mining sector and long-standing relationships with local stakeholders. Its Gedabek mine utilizes both conventional and innovative recovery methods, potentially offering operational flexibility. However, the company faces scale disadvantages compared to global gold majors and lacks geographic diversification. Its production volumes are modest compared to industry leaders, limiting economies of scale. The company's cost structure appears challenged, as evidenced by recent losses, potentially putting it at a disadvantage during gold price downturns. Anglo Asian's focus on Azerbaijan provides regional expertise but also creates dependency on a single jurisdiction's regulatory and political environment. The company's competitive position in copper is minimal compared to dedicated copper producers. Its ability to expand reserves and resources at Gedabek will be crucial for maintaining competitiveness against peers with larger reserve bases and multiple producing assets. The company's London listing provides access to capital but may limit visibility compared to miners listed on larger exchanges.