Azerbaijan’s gold mining company AzerGold’s net profit increased by 287.3% YoY in 2020, the company’s press service reported.
In 2020, the company’s net profit increased by about $35.8 million and exceeded $48.2 million.
Moreover, the company’s gross profit, profit margin, as well as EBITDA increased. Thus, the total profit of the company increased by $43.04 million, or by 141.3%, and exceeded $73.5 million. Gross profit margin grew from 35% in 2019 to 66.7% in 2020.
As a result of effective asset management, the company gained an optimal level of profit from available resources and its Return on Assets indicator (ROA) grew from 11% to 34.5%.
According to financial audits conducted by PricewaterhouseCoopers (PwC), in 2020 the company’s gold production increased by 8.7% and silver production by 17.6%. In the reported period, $110.2 million were brought to the state economy from the sale of gold and silver, up by 27.9%.
Furthermore, the company’s total capital saw a 255.9% increase and exceeded $98 million dollars. 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). As of the end of 2020, the share capital of AzerGold CJSC exceeded $29.5 million.
The company invested 29.6 million manats ($17 million) 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.
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 Iron Ore LLC, the first subsidiary of AzerGold CJSC, has been launched to carry out iron ore mining projects in Dashkasan iron ore deposits. (AzerNews/Ukrainian metal)