Azerbaijan-focused Anglo Asian on Thursday unveiled a strategic plan to transform into a midtier gold and copper producer, setting out plans to double its production over the next five years.

The company forecasts production of between 50 000 and 54 000 gold-equivalent ounces (GEO) in 2023, which will increase to 175 000 GEOs in 2028.

“We have an ambitious, but realistic, plan to deliver this through sequential asset development and the opening of four new mines in Azerbaijan over the next five years,” said CEO Reza Vaziri.

The strategy has two phases of growth. In Phase 1, production at the currently operating Gedabek and Gadir mines will be managed to maximise their output as they come to the end of their expected mine lives. Concurrently, the company plans to bring into production during 2023 to 2026 three new mines at Zafar, Gilar and Xarxar.

Phase 2 builds on this growth with the development of Garadag. Anglo Asian assesses Garadag to have the potential to produce more than 300 000 t of copper, with production set to start in 2028.

The strategy anticipates that the contribution of copper production to the company's revenue will exceed that of gold doré from 2026. The overall value of metal output is expected to more than double from 2023 to 2027 and could treble by 2028.

He added that the upcoming increased copper exposure of the company was timely and value-accretive, noting the importance of the metal in the energy transition currently under way.

"Our upcoming increased copper exposure is timely and value-accretive. Copper is a critical metal for the energy transition to net zero that is expected to benefit from increased demand as the move towards electrification intensifies,” said Vaziri.

Anglo Asian will finance its new mine development with cash flow generated from its existing mines, current cash, local bank debt and equipment vendor financing. The company has recently secured a $32-million debt facility with the International Bank of Azerbaijan. It may also seek additional sources of finance depending on the final processing methods chosen.