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AzerGold’s revenues increase by up to 300pct in 2020

31 August 2021 15:35 (UTC+04:00)
AzerGold’s revenues increase by up to 300pct in 2020

By Vugar Khalilov

Azerbaijan’s gold mining company AzerGold’s net profit increased by 287.3 percent year-on-year in 2020, the company’s press service has reported.

In 2020, the company's net profit increased by about 35.8 million dollars compared to 2019 and exceeded 48.2 million dollars.

Moreover, the Company's gross profit, profit margin, as well as EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) increased. Thus, the total profit of the Company increased by 43.04 million dollars or 141.3 percent compared to 2019 and exceeded 73.5 million dollars in 2020. Gross profit margin also increased from 35 percent in 2019 to 66.7 percent in 2020, the report reads.

In 2019, AzerGold’s EBITDA amounted to 43.9 million dollars, while the figures increased by 57.6 percent and exceeded 69 million dollars in 2020.

As a result of effective asset management, the company has gained an optimal level of profit from available resources and its Return on Assets indicator (ROA) grew from 11 percent to 34.5 percent in 2020.

According to financial audits conducted by PricewaterhouseCoopers (PwC), in 2020 the Company's gold production increased by 8.7 percent and silver production by 17.6 percent compared to the previous year. In the reported period, 110.2 million dollars were brought to the state economy from the sale of gold and silver, which is 27.9 percent (24.04 million dollars) more than in 2019.

Furthermore, the Company’s total capital saw 70.56 million dollars increase (255.9 percent) compared to 27.57 million dollars in 2019 and exceeded 98 million dollars in 2020. The growth in total capital is based on the annual net profit and as well as an increase in the authorized capital by the state (in the amount of 22 million dollars). By the end of 2020, the share capital of AzerGold CJSC exceeded 29.5 million dollars.

In the reported period, the Company's invested 29.6 million manats (17 million dollars) in the implementation of gold mining projects from its net profit.

AzerGold CJSC has completely eliminated its dependence on the state budget in this area and state funding is only provided for the implementation of new iron ore projects.

It should be noted that in line with the presidential Decree dated September 1, 2020, AzerGold CJSC was authorized to study, research, explore, develop and manage ferrous metal ore deposits in the country, as well as other activities related to the development of this field.

In 2020, Dashkasan İron Ore LLC, the first subsidiary of AzerGold CJSC, has been launched to carry out iron ore mining projects in Dashkasan iron ore deposits.

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