Anglo Asian Mining plc (LSE:AAZ) has appointed Worley Europe Limited to undertake feasibility studies for the development of its Xarxar and Garadag copper deposits in Azerbaijan, marking a significant step in the company’s strategy to expand its copper production capabilities.
The studies will evaluate the use of heap leach and solvent extraction-electrowinning (SX-EW) technologies to produce copper metal directly on site. If implemented, the project would represent the first production of refined copper metal by both Anglo Asian Mining and Azerbaijan, potentially creating additional value by reducing dependence on concentrate exports and third-party smelting facilities.
Focus on Higher-Value Copper Production
Management believes on-site copper metal production could strengthen project economics by capturing more value within the production chain. The feasibility work will assess the technical and commercial viability of the proposed processing route and help determine the optimal development strategy for the two deposits.
The appointment of Worley, a global engineering and project delivery specialist, reflects the company’s intention to accelerate the advancement of its copper portfolio as demand for the metal continues to grow across energy transition and industrial markets.
Major Drilling Campaign Underway
Alongside the feasibility programme, Anglo Asian is launching an extensive 90,000-metre core drilling campaign across 2026 and 2027.
The programme will be divided between exploration drilling and work designed to support feasibility studies and future mine development. Activities will cover several key assets, including Xarxar, Garadag, Gedabek, Demirli and Gilar.
Management expects the drilling programme to contribute to resource expansion, reserve conversion and mine planning activities, while also supporting the development of new mining operations across its portfolio.
Long-Term Growth Strategy
The company views the combined feasibility and drilling initiatives as central components of its broader strategy to evolve into a mid-tier, multi-asset copper and gold producer.
By expanding its resource base and progressing multiple development projects simultaneously, Anglo Asian aims to build a larger and more diversified production platform capable of delivering sustainable long-term growth.
Management believes these investments will strengthen the company’s position within Azerbaijan’s mining sector and support future value creation for shareholders.
Outlook
Anglo Asian’s outlook is supported by an improvement in financial performance during 2025, including stronger profitability and a recovery in cash generation. However, earnings volatility, higher leverage and uneven cash conversion continue to present challenges.
Technical indicators remain positive, reflecting a strong upward trend in the shares, although overbought conditions suggest the potential for short-term consolidation or pullbacks.
Valuation remains a consideration for investors, with the shares trading on an elevated earnings multiple and no dividend yield currently highlighted. Nevertheless, management believes the company’s expanding copper pipeline provides a strong foundation for future growth.
More about Anglo Asian Mining
Anglo Asian Mining plc is an AIM-listed producer of gold, copper and silver with operations and exploration assets located across Azerbaijan.
Its portfolio includes producing and development-stage projects such as Gilar, Demirli and Gedabek. During 2025, the company produced 7,915 tonnes of copper and 25,061 ounces of gold and is pursuing a long-term objective of becoming a mid-tier, multi-asset copper and gold producer by 2030.
As part of this strategy, Anglo Asian is targeting annual copper production of between 50,000 and 55,000 tonnes through a combination of resource growth, new mine development and enhanced processing capabilities.
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