Anglo Asian Mining PLC 
Annual report and accounts 2011
Leading gold/copper/silver mining and production company in Azerbaijan Anglo Asian Mining PLC is a 
Caucasian and Central Asian 
focused gold/copper/silver 
producer with a portfolio 
of production and exploration 
assets in Azerbaijan.
The Company’s portfolio covers 
1,962 sq km of prospective 
exploration assets held under 
a Production Sharing Agreement 
with the Government of Azerbaijan 
including the producing Gedabek 
mine, the country’s first gold mine 
in modern times.
01 Highlights
02 At a Glance
04 Chairman’s Statement
06 Chief Executive’s Review
10 Financial Review
12 Board of Directors
13 Directors’ Report
16 Corporate Governance
17 Independent Auditor’s Report
18 Consolidated Income Statement
18 Consolidated Statement of Comprehensive Income
19 Consolidated Balance Sheet
20 Consolidated Cash Flow Statement
21 Consolidated Statement of Changes in Equity
22 Notes to the Consolidated Financial Statements
43 Independent Auditor’s Report
44 Company Balance Sheet
45 Notes to the Company Financial Statements
48 Corporate Information
In this report   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 01
Financial
 > Increased profit before tax of US$31.6 million 
(2010: US$19.8 million) on revenue of US$83.8 million 
(2010: US$72.0 million)
 > Increased gross profit of US$43.0 million 
(2010: US$31.4 million)
 > Increased operating cash flow before movement 
in working capital of US$55.8 million 
(2010: US$47.0 million)
 > Gold sales of 49,304 ounces (2010: 57,398 ounces) 
completed at an average of US$1,573 per ounce 
(2010: US$1,241 per ounce)
 > Gold produced at an average cash operating cost 
of US$448 per ounce (2010: US$358 per ounce) 
 > Reduced net debt to US$3.2 million at 31 December 2011 
(2010: US$25.6 million) 
 > Solid cash position as at 31 December 2011 
of US$9.9 million (2010: US$5.1 million)
Operational
 > Total gold dore production of 57,068 ounces 
(2010: 67,267 ounces)
 > Silver dore production totalled 39,086 ounces 
(2010: 43,356 ounces)
 > 842,751 tonnes of dry ore transferred onto the 
leach pad with an average gold content of 
3.29 g/t during FY 2011 (2010: 821,176 tonnes 
of dry ore with an average gold content of 4.33 g/t
 > Significant increase in total copper concentrate 
produced which exceeded forecast – 611 tonnes 
of copper, 134,240 ounces of silver and 200 ounces 
of gold (2010: 182.5 tonnes of copper, 46,940 ounces 
of silver and 833 ounces of gold)
 > Post year end, Q1 2012 gold production totalled 
9,925 ounces – targeted to produce circa 54,000 
ounces for FY 2012
 > Upgraded JORC resource by 50% at Gedabek 
post year end to over 1 million ounces of gold in the 
Measured and Indicated categories
 > Focus on exploration upside potential at Gedabek: 
24,567 metres of drilling planned to increase resource 
base – a JORC compliant ore reserve report is planned 
to be completed in Q2 2012
 > Continuing to develop Gosha Contract Area into a 
profitable, high grade underground gold mine – 
development anticipated to commence H2 2013 
 > Notice of Discovery in 462 sq km Ordubad Contract Area 
– further exploration planned to advance project
Highlights
Profit before tax (million)
+60%
US$31.6
2010
2011
US$19.8
Gross profit (million)
+37%
US$43.0
2010
2011
US$31.4
Operating cash flow before 
movement in working capital (million)
+19%
US$55.8
2010
2011
US$47.0
>|
visit us online
angloasianmining.com Header
>|
[section tab]
angloasianmining.com/[web page]
At a glance
Anglo Asian is a 
leading gold/copper/ 
silver production 
company focussed in 
Azerbaijan. In line with 
its strategy to build a 
multiple mine operation 
and unlock intrinsic 
value for shareholders, 
it has implemented 
defined exploration 
and development 
programmes across its 
1,962 sq km portfolio of 
assets in Azerbaijan.
02 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
The Republic of Azerbaijan is a country 
situated in south western Asia   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 03
Gedabek Contract Area
Gosha Contract Area
Ordubad Contract Area
300 sq km
licence area
 > Mining and exploration  
rights until March 2022
 > Gedabek gold/c opper/sil v e r 
open pit mine
 > US$52 million new agitation 
leading plant in development
57,068 ounces 
of gold produced
611 tonnes 
of copper concentrate produced 
1,276,422 ounces 
of gold resource
300 sq km 
licence area
 > In November 2011 we submitted 
a development and production 
programme which was approved 
in April 2012
 > Plans to develop a small, 
profitable high grade underground 
gold mine in H2 2013
3,000 metres 
of drilling
300 metres 
of adit and sample work
462 sq km 
licence area
 > Early stage exploration underway
 > In April 2012, we submitted 
a Notice of Discovery
3,000 metres 
re-sampling of adits
2,500 metres 
of surface drilling
1,400 metres 
of underground drilling 04 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
During the period under review Anglo Asian 
made excellent progress as a significant 
gold/copper/silver producer in Caucasia. 
With a solid production profile and low 
operating costs at our flagship Gedabek 
gold/copper/silver mine (‘Gedabek’) located 
in western Azerbaijan, as well as favourable 
commodity prices, we have enjoyed a period 
of increasing profitability for the year to 
3104December 2011 (‘FY 2011’). To this end, 
I am delighted to report that the Company 
recorded a 60% increase in profit before tax 
of US$31.6 million (2010: US$19.8 million) 
and a 37% increase in gross profit of 
US$43.0 million (2010: US$31.4 million). 
In addition, in line with our strategy to build 
a multiple gold mine company and unlock 
our intrinsic value, we have implemented 
defined exploration and development 
programmes across our 1,962 sq km 
portfolio of prospective copper and gold 
assets in Azerbaijan. At Gedabek, we 
accomplished a milestone post-period end, 
announcing a 50% upgrade in our JORC 
resource to over 1 million ounces of gold in 
the Measured and Indicated classifications; 
at our 300 sq km Gosha Contract located 50 
km away from Gedabek, we announced that 
the Government of Azerbaijan had approved 
a development and production programme 
and we are now continuing with exploration 
with a view to establishing our second 
mining project in Azerbaijan; and at our 
Ordubad Contract Area we announced 
a Notice of Discovery in April 2012. 
In terms of gold and silver production from 
Gedabek’s open pit, heap leach operation in 
FY 2011, the mine produced 57,068 ounces 
of gold at an average cash operating cost of 
US$448 per ounce. This positions Gedabek 
as a low cost producer. Additionally, the 
Company produced 39,086 ounces of silver. 
During the year we sold 49,304 ounces of 
gold at an average price of US$1,573 per 
ounce and 34,593 ounces of silver at an 
average price of US$35 per ounce. The 
difference between gold sold and gold 
produced is for two reasons. Firstly, the 
Government of Azerbaijan takes title to 
12.75% of all produced metals and secondly, 
there is usually a timing difference between 
gold production and gold sales.
We also enjoyed strong copper production 
at Gedabek from our Sulphidisation, 
Acidification, Recycling and Thickening 
(‘SART’) plant. In FY 2011 we exceeded our 
target of 525 tonnes of copper and produced 
611 tonnes of copper, 134,240 ounces silver 
and 200 ounces of gold. Total sales of copper 
concentrate of US$5.0 million were recorded 
in FY 2011 (2010: US$ nil). The Company’s 
copper concentrate stockpiles currently total 
743 tonnes copper, 200 ounces gold and 
162,000 ounces of silver. Anglo Asian is in 
detailed discussions with various parties 
regarding finding a long-term sales partner 
and will update on this progress in due course. 
Production was restricted to 9,925 ounces 
of gold post period end for Q1 2012, due to 
an unusually harsh winter. However, we still 
expect that the reduced level of production 
for Q1 2012 will be compensated for during 
the course of the year and that our internal 
target of 54,000 ounces of gold for 2012 will 
be achieved. Silver production from our heap 
leach operation remained on track totalling 
7,670 ounces for the quarter. Copper, silver 
and gold production from our SART operations 
totalled 148 tonnes of copper concentrate, 
34,666 ounces of silver and 27 ounces 
of gold for the first quarter. 
To ensure the long-term success of Gedabek 
as a producing entity and obtain the best 
return for shareholders, we are looking to 
improve gold recovery rates and in turn to 
extend the life of mine. In May 2012, following 
a pre-feasibility study carried out by Arcadis 
Chile, the Company announced that it intends 
to construct an agitation leaching plant at 
“ I am delighted to report that the Company 
recorded a 60% increase in profit before tax 
of US$31.6 million (2010: US$19.8 million).”
Khosrow Zamani 
Non-executive Chairman
Chairman’s statement
In summary
 > In line with our strategy to build a 
multiple gold mine company and 
unlock our intrinsic value, we have 
implemented defined exploration 
and development programmes 
across our 1,962 sq km portfolio 
of prospective copper and gold 
assets in Azerbaijan
 > In terms of gold and silver 
production from Gedabek’s open 
pit, heap leach operation in FY 
2011, the mine produced 57,068 
ounces of gold at an average 
cash operating cost of US$448 
per ounce
 > We also enjoyed strong copper 
production at Gedabek from our 
Sulphidisation, Acidification, 
Recycling and Thickening (‘SART’) 
plant. In FY 2011 we exceeded our 
target of 525 tonnes of copper and 
produced 611 tonnes of copper, 
134,240 ounces silver and 200 
ounces of gold   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 05
Gedabek. The plant will have the capacity 
to treat 100 tph of ore and has an expected 
capital cost of US$52 million including 
construction of the tailings dam and all 
related infrastructure. The Company is in 
the process of seeking approval from the 
Government of Azerbaijan for construction 
of the agitation leaching plant.
Gedabek is an open pit mining operation, which 
currently utilises a conventional heap leach 
process and a resin adsorption recovery plant. 
The heap leach process required less capital 
than the proposed agitation leaching plant 
to establish. However, heap leaching has 
limitations with regards to the size of ore 
being leached (-25mm), which results in gold 
recoveries of circa 70% with leaching cycles 
extending up to typically a year depending on 
the ore mineralogy. In comparison, agitation 
leaching of milled ore can deliver higher 
recoveries with the immediate production 
of gold.
The agitation leaching plant will process 
high grade ore and additional resources that 
are not suitable for Gedabek’s current heap 
leaching processing operation, together with 
spent ore from the leach heaps to further 
improve total gold recoveries. Agitation 
leaching recovery rates have been initially 
estimated at 85% for oxide material and 69% 
for sulphide material although the Company 
is carrying out further tests to see if these 
recovery rates can be improved. In May 2012 
the International Bank of Azerbaijan (‘IBA’) 
provided a US$7.5 million loan at an annual 
interest rate of 12% as part of the finance required 
for this project. The Company is in advanced 
discussions regarding additional debt funding 
and will update shareholders in due course. 
As I mentioned briefly, in April 2012, we were 
delighted to announce a resource upgrade 
to 48,138,979 tonnes at 0.825 g/t gold for 
1,276,422 ounces of gold in the Measured, 
Indicated and Inferred categories (a 61% 
increase from the previous JORC resource 
estimate dated October 2010); 0.197 % 
copper for 94,890 tonnes (a 93% increase); 
and 6.66 g/t silver for 10,305,653 ounces 
(a 36% increase) at a cut-off grade of 0.3 g/t 
gold. Recent drilling completed since the 
resource estimate indicates the significant 
potential to continue upgrading and increasing 
the size of the Gedabek deposit. Consequently, 
we are planning to conduct a further 24,567 
metre drilling programme and complete a 
JORC compliant ore reserves estimate in 
Q2 2012. 
On the corporate front, we continue to work 
closely with the Government of Azerbaijan. 
We are grateful for the level of support it 
gives us as we continue to develop Gedabek, 
the first gold mine in Azerbaijan in modern 
times, and to advance our other Contract 
Areas, Gosha and Ordubad, with the vision of 
commissioning future mining operations and 
building a mid-tier gold and base metal 
mining company in the country. 
In terms of financing, we have a strong 
relationship with the IBA, which is majority 
owned by the Government of Azerbaijan. With 
our increasing profitability in FY 2011 we 
significantly reduced our debt (which peaked 
at US$43.7 million in March 2010 following 
Gedabek’s mine development in 2008–2009) 
to US$13.1 million as at 31 December 2011 
(2010: US$30.6 million). Net debt, being 
interest-bearing loans and borrowings less 
cash and cash equivalents, reduced to US$3.2 
million at 31 December 2011 (2010: US$25.5 
million) and cash in the bank stood at US$9.9 
million (2010: US$5.1 million). In addition, 
during 2011, the Company repaid its US$1.0 
million loan from the Company’s CEO Reza 
Vaziri bringing the outstanding loan balance 
to US$ nil. 
It must be noted that we have a Production 
Sharing Agreement in place with the 
Government of Azerbaijan based on the 
established Azeri oil industry model. Up until 
the time we have recovered all of our carried 
forward, unrecovered costs, the Government 
of Azerbaijan effectively takes 12.75% of 
commercial products of any mine we bring 
into production, with Anglo Asian taking 
87.25%. We expect to continue retaining 
87.25% of the commercial products until at 
least the end of 2012 based on costs incurred 
to date and, with the construction of the 
agitation leaching plant, this level of recovery 
is expected to continue beyond 2012.
In 2011 Anglo Asian generated revenues of 
US$83.8 million (2010: US$72.0 million) as a 
result of gold, silver and copper concentrate 
sales from the Gedabek mine. US$78.8 million 
of the revenue (2010: US$72.0 million) was 
generated from the sale of Anglo Asian’s 
share of the production of dore bars for the 
year which comprised 49,304 ounces of gold 
and 34,593 ounces of silver (2010: 57,398 
ounces of gold and 35,922 ounces of silver) 
at an average price of US$1,573 per ounce 
and US$35 per ounce respectively (2010: 
US$1,241 per ounce and US$22 per ounce). 
In addition, Anglo Asian generated revenue 
from the sale of copper concentrate of 
US$5.0 million (2010: US$ nil). 
The Company incurred mining cost of sales of 
US$40.7 million (2010: US$40.6 million) and 
therefore reported a gross profit of US$43.0 
million for 2011 (2010: US$31.4 million). 
Maintaining good health, safety, social and 
environmental standards is a top priority for 
the Company and accordingly we have a 
Health, Safety, Environment and Technology 
Committee (‘HSET’) at Board level, under the 
chairmanship of Professor John Monhemius, 
a Non-executive Director of the Company. 
This committee, which meets at least twice 
a year, has the responsibility to oversee all 
aspects of the HSET performance of the 
Company and to make recommendations 
to the Board. We have approximately 500 
personnel working in the Company. 
The local community remains an important 
focus for us. Our main project in 2011 was to 
fund and construct a school for 300 students 
in Arixdam, the closest village to the Gedabek 
mine. This is now up and running successfully. 
Additionally, we continue to finance and train 
beekeepers, run a free internet café, and 
provide computer training courses to the 
local population. The Company has also 
financed and arranged the improvement of 
sections of roads in Arixdam and Duzyurd as 
well as the construction of a bridge and the 
building of a new pipeline to provide a potable 
water supply to the households residing 
within the vicinity of the Gedabek mine.
In summary, the past financial year has seen 
Anglo Asian cement its footprint in Caucasia 
as a significant gold producer in the region. 
Both solid production and a favourable gold/ 
copper price has resulted in a strong financial 
performance for your Company, which enabled 
us to accelerate the repayment of loans, 
reduce debt ahead of schedule and build 
a strong cash position, which stood at 
US$9.9 million at 31 December 2011. With 
significant stockpiles of copper concentrate 
carried forward into the new financial year, 
this opens up potential further cash flow 
for FY 2012 when sale contracts have 
been secured. 
Looking ahead to 2012 and beyond, whilst 
we remain committed to improving the 
operational efficiency and gold recovery rates 
at Gedabek, we expect to see continued solid 
gold, silver and copper production for the year .
We are also focused on producing a JORC 
compliant reserve estimate at Gedabek in 
Q2 2012 and will continue exploration and infill 
drilling throughout the remainder of the year 
to improve and upgrade the resource base. 
Furthermore, we remain committed to 
establishing a second mining project in 
Azerbaijan, Gosha, which will be another 
significant step for Anglo Asian as we focus 
on delivering exploration upside to become 
a leading mid-tier gold producer in Caucasia. 
We look forward to reporting on these 
developments in due course.
I would like to take this opportunity to thank 
our Anglo Asian employees, our partners, 
the Government of Azerbaijan, my fellow 
Directors, advisers and shareholders for 
their continued support and I look forward 
to updating shareholders regularly on our 
progress as we continue to build ourselves 
as a highly profitable, significant gold/
copper/silver producer in Azerbaijan. 
Khosrow Zamani 
Non-executive Chairman
22 May 2012 06 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
During the course of 2011 we continued to 
focus on the development of our flagship 
Gedabek mine. Our first aim was to realise 
our internal management target of circa 
60,000 ounces of gold for the year. Our 
second aim was to continue exploring 
the greater Gedabek area to re-classify 
the mineral resource and ore reserves 
categories, and our third aim was to consider 
future mineral processing options such as 
agitation leaching to optimise gold recovery 
at the mine. 
Additionally, in line with our strategy to 
establish other mining operations within 
Azerbaijan, we conducted exploration work 
at our other two Contract Areas, Gosha, 
which is located 50 km away from Gedabek, 
and Ordubad, which is located in the 
autonomous Nakhchivan Republic of Azerbaijan. 
Mining operations
Gedabek
Gedabek is an open pit heap leach gold/
copper/silver mining operation located on a 
300 sq km Contract Area in western Azerbaijan 
across the Tethyan Tectonic Belt, one of 
the world’s significant copper and gold 
bearing areas. 
We were pleased to announce that for FY 2011 
we produced 57,068 ounces of gold with an 
average cash operating cost of US$448 per 
ounce. With regards to gold and silver sales 
for the year, we sold 49,304 ounces of gold 
at an average of US$1,573 per ounce for the 
year and 34,593 ounces of silver at an 
average of US$35 per ounce. 
Table 1 highlights the quarter-on-quarter 
gold production at Gedabek over the past 
year with average gold sale price achieved. 
In terms of processing, during 2011 the 
volume of dry ore being transferred onto the 
leach pad totalled 842,751 tonnes with an 
average gold content of 3.29 g/t (2010: 821,176 
tonnes of dry ore with an average gold content 
of 4.33 g/t). Table 2 summarises levels of dry 
ore that have been transferred to the leach 
pad on a quarterly basis from 1 January 2011 
to 31 December 2011.
The reduced grade in 2011 was a result of 
treating transitional ore and was in line with 
our mine plan. A change in the physical 
characteristics of the ore, whereby a 
significant change in density and structure 
associated more with the transitional ore zone, 
affected the leaching rate and in turn the gold 
recovery and production. Channelling also 
occurred during the second half of the year in 
one of the cells as a result of the harsh winter, 
which affected leaching efficiencies. 
Due to this, we implemented an initiative in 
Q3 2011 to accelerate waste removal to open 
“ In May 2012, following a pre-feasibility study 
carried out by consultants, Arcadis Chile, the 
Company announced that it intends to construct 
an agitation leaching plant at Gedabek to further 
improve gold recoveries.”
Reza Vaziri
President and Chief Executive
Chief Executive’s review
In summary
 > 2011 has been a successful year 
for Anglo Asian in terms of solid 
gold and copper production and 
increasing profitability. The year 
ahead looks very promising as we 
advance our flagship mining 
operation Gedabek
 > We remain committed to 
developing Gosha and enhancing 
our production profile by 
commencing development of a 
second mining operation in the 
second half of 2013
 > I believe that we are in a 
strong position to generate 
value for shareholders during 
the coming year and look forward 
to updating shareholders regularly 
on our progress
Table 1
  Gold produced* 
  (including Govt. of   Weighted average 
  Azerbaijan’s share Gold sales achieved* gold sale price 
Quarter Ended (ounce) (ounce) (US$)
31 March 2011 14,028 11,269  1,385
30 June 2011 14,582 13,317  1,506
30 September 2011 13,166 11,342  1,704
31 December 2011 15,292  13,376  1,688 
Total for FY 2011 57,068 49,304  1,573
* This only includes gold produced and sold in the form of dore   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 07
up areas of oxide ore which has leaching 
characteristics more suitable to the heap 
leach process. Additionally, we crushed the 
ore more finely to make it more accessible 
to cyanide leaching.
As previously stated, Gedabek is currently 
an open pit heap leach operation. To ensure 
its long-term success as a leading gold/
copper/silver mine in the Caucasian region 
we are continually looking at ways to 
improve operational efficiencies and 
production. Accordingly, in May 2012, 
following a pre-feasibility study carried out 
by consultants, Arcadis Chile, the Company 
announced that it intends to construct an 
agitation leaching plant at Gedabek. The 
plant will have the capacity to treat 100 tph 
of ore and has an expected capital cost of 
US$52 million, including construction of the 
tailings dam and all related infrastructure. 
The Company is now in the process of 
seeking approval from the Government of 
Azerbaijan for construction of this new plant.
For the recovery of copper concentrate 
at Gedabek we use a SART process, which 
facilitates the recovery of the copper 
dissolved in the leaching solution. The 
copper is recovered in the form of a 
precipitated copper sulphide concentrate 
by-product, which also contains silver with 
commercial value. Recovery of copper and 
silver from solution is in the region of 90% 
and 96% respectively. The SART process has 
the added economic benefit that substantial 
amounts of cyanide are recovered from the 
leach solutions.
Using this process, for the year 31 December 
2011 we produced 611 tonnes of copper, 
134,240 ounces of silver and 200 ounces of 
gold, which exceeded our internal target of 
525 tonnes of copper for the year. A full 
quarterly breakdown of copper concentrate 
production can be reviewed in table 3.
We expect copper production in FY 2012 to total 
in the region of 833 tonnes of dry concentrate 
containing 500 tonnes of copper, 102,000 
ounces of silver and 134 ounces of gold.
Exploration
Gedabek
During the period, exploration remained 
an important part of our focus at Gedabek 
to increase the resource base, which at 
the beginning of the year stood at 791,000 
ounces of gold, 49,300 tonnes of copper and 
7,597,000 ounces of silver for all categories, 
and in turn increase the life of mine at Gedabek, 
which currently stands at approximately 
323,000 ounces of gold over a six year period. 
During the course of 2010/2011 we 
undertook an advanced exploration 
programme comprising of a two phase 
drilling programme. Phase 1 drilling, which 
was completed February 2011, comprised 60 
holes concentrated within the boundaries of 
the existing pit at Gedabek, totalling 5,452 
metres across a 90,000 square metre area 
with 4,626 samples prepared and assayed. 
Best intersections from the Phase 1 drilling 
programme at Gedabek included: 
 > SGSDD02 – 19m at 3.61 g/t Au, 10.52 g/t 
Ag and 0.18% Cu
 > SGSDD16 – 17.3m at 11.57 g/t Au, 46.52 
g/t Ag and 0.88% Cu 
 > SGSDD22A – 3.2m at 29.47 g/t Au, 11.76 
g/t Ag and 0.61% Cu
 > SGSDD31 – 2.3m at 16.05 g/t Au, 73.54 g/t 
Ag and 3.45 % Cu
 > SGSDD33 – 2.1m at 9.35 g/t Au, 23.26 g/t 
Ag and 0.42 % Cu
Table 2
      Dry ore transferred  
      to the leach pad 
Quarter ended     (tonnes) Average grade (g/t)
31 March 2011     208,271 3.32
30 June 2011     210,526 3.35
30 September 2011     233,217 3.22
31 December 2011     190,737 3.22
Total for FY 2011     842,751 3.29
Table 3
    Copper concentrate  Copper recovered Silver produced Gold produced 
Quarter ended   produced (dry tonnes) (tonnes) (ounce) (ounce)
31 March 2011   200 104 24,484 74
30 June 2011   259 157 26,254 35
30 September 2011   294 179 45,110 29
31 December 2011   284 171 38,392 62
Total for FY 2011   1,037 611 134,240 200
The second objective of the 2010 – 2011 
exploration programme was to look at the 
mineral resources around the current 
economic open pit limit with a view to its 
possible future expansion. This was achieved 
by the Phase 2 exploration drilling campaign 
that consisted of 56 drill holes with 9,058.48 
metres drilled and 4,080 samples prepared 
and assayed.
The results for Phase 1 and 2 drilling 
programmes demonstrated consistent gold, 
silver and copper grades and continuity of 
mineralisation at Gedabek. Importantly, it 
also increased the geological knowledge and 
confidence in the quantity and quality of the 
mineral resources and ore reserves within 
the current economic open pit limit at 
Gedabek, and also enabled us to gain a 
better understanding of the metallurgy of 
the ore body to help assess future mineral 
processing options such as agitation 
leaching. As previously mentioned in this 
report, agitation leaching could potentially 
enable an increase in Gedabek’s mine life 
and improve its economic fundamentals. 
Ore conveyance to leach pads 08 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Exploration continued
Gedabek continued
The Gedabek mineral deposit has the style 
of mineralisation typical of porphyry gold 
deposits (Robert, Poulsen and Dube, 1997), 
which is confirmed by the extensive analysis, 
interpretation and processing of the previous 
and recent sources of geological and chemical 
information. This is also supported by the 
geological and structural geology cross 
sections, which show that the spatial 
distribution of the gold, copper and silver 
mineralisation is located under, or immediate 
to, the geological contact between the 
andesitic and dacitic lavas and volcaniclastic 
tuffs and the dacitic quartz porphyry.
The updated mineral resources estimation 
was completed by mining consultants, CAE 
Mining, taking into account surface and open 
pit structural geology mapping and the 
information from the 2010-2011 exploration 
drilling campaigns, which together with 
earlier campaigns totalled 34,936 metres 
of drilling at Gedabek. 
As a result, in April 2012 we were delighted 
to be able to announce a 50%* increase in 
the JORC-compliant gold resource at Gedabek 
to 37,111,577 tonnes at 0.884 g/t of gold for 
1,054,382 ounces; 0.220% copper for 81,765 
tonnes; and 7.215 g/t of silver for 8,608,551 
ounces in the Measured and Indicated 
classifications at a cut-off grade of 0.3 g/t 
of gold. Including the Inferred category, the 
total JORC mineral resource is now 
48,138,979 tonnes at 0.825 g/t gold for 
1,276,422 ounces of gold (a 61% increase); 
0.197 % copper for 94,890 tonnes (a 93% 
increase); and 6.66 g/t silver for 10,305,653 
ounces (a 36% increase) at a cut-off grade 
of 0.3 g/t of gold. 
The updated Measured, Indicated and Inferred 
mineral resources of both the oxide and 
sulphide mineralisation based on a cut-off 
grade of 0.3 g/t of gold is described in table 4. 
In Q1 2012, we commenced a further 24,567 
metre drilling programme with the aim of 
increasing the mineral resources of the 
Gedabek deposit and completing a JORC 
compliant ore reserves estimate in Q2 2012.
Gosha
The 300 sq km Gosha Contract Area is 
located in western Azerbaijan, 50 km 
north-west of Gedabek and contains three 
prospects: Gosha, Itkirlan and Munduglu. 
Following the Government of Azerbaijan’s 
approval of the Development and Production 
Programme, it is our intention to develop a 
small, profitable, high grade underground 
gold mine at Gosha. 
An exploration programme was undertaken 
at Gosha in 2010, which included 3,000 
metres of drilling and 300 metres of adit 
and sample work. Gosha has more than 6 km 
of exploration adits from the Soviet era and 
this programme highlighted that one of its 
Chief Executive’s review continued
Improving gold recoveries
A pre-feasibility study was completed in 
January 2012 aimed at looking at ways to 
improve gold recoveries at Gedabek. The 
study suggests that the current conventional 
heap leach process, which results in gold 
recoveries of circa 70% with leaching cycles 
extending up to a year, could be improved 
with an agitation leaching plant. This would 
see the production of gold with recovery 
rates for oxide and sulphide materials rising 
to 85% and 69% respectively. The plant, with 
an estimated capex of US$52 million, would 
be designed to treat 100 tonnes of ore per 
hour and is planned to be commissioned 
during H2 2013.
In summary
 > In April 2012 we were delighted 
to be able to announce a 50%* 
increase in the JORC-compliant 
gold resource at Gedabek to 
37,111,577 tonnes at 0.884 g/t 
of gold for 1,054,382 ounces
 > Having assessed the results 
of our exploration programme, 
in February 2011 we submitted 
a Notice of Discovery at Gosha 
to the Government of Azerbaijan
Table 4
   Grades   Products
 Tonnage Au Cu Ag Au Cu Ag 
Classification t g/t % g/t oz t oz
Measured 22,349,562 1.028 0.255 8.249 738,958 57,069 5,927,487
Indicated 14,762,015 0.665 0.167 5.649 315,424 24,696 2,681,064
Measured 
& Indicated 37,111,577 0.884 0.220 7.215 1,054,382 81,765 8,608,551
Inferred 11,027,402 0.626 0.119 4.787 222,040 13,125 1,697,102   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 09
“ Gold production is expected to reach 54,000 
ounces of gold for FY 2012 and the decision 
to build an agitation leaching plant to further 
improve gold recoveries marks an exciting time.”
mineralisation zones, designated during 
Soviet times as ‘Zone 13’, has the potential 
to become a small narrow vein gold mining 
operation. In addition to this zone, there are 
several other vein type mineralisation zones. 
At present no JORC compliant information 
on Gosha’s resource is available. 
Having assessed the results of our exploration 
programme, in February 2011 we submitted 
a Notice of Discovery at Gosha to the 
Government of Azerbaijan, and later in 
November 2011 we submitted a Development 
and Production Programme in accordance 
with our PSA which was subsequently approved 
in April 2012. An update on our progress and 
summary of the proposed work programme 
at Gosha will be published in due course. 
Ordubad
Our 462 sq km Ordubad Contract Area 
is located in the Nakhchivan region of 
Azerbaijan and contains numerous targets 
including Shakardara, Piyazbashi, Misdag, 
Agyurt, Shalala and Diakchay, which are all 
located within a 5 km radius of each other.
Post period end, in April 2012, we submitted 
a Notice of Discovery following exploration 
work performed by Anglo Asian at its 
Piyazbashi and Agyurt targets during 2010 
and 2011, building on work performed in 
Soviet times. This exploration work included 
surface trenching and sampling, re-sampling 
of 3,000 metres of adits, 2,500 metres of surface 
drilling and 1,400 metres of underground 
drilling at the Agyurt target. 
As with Gosha, under the terms of the PSA, 
following the submission of the Notice of 
Discovery, we have a six month period to 
submit a Development and Production 
Programme to the Government of 
Azerbaijan for approval.
Further information concerning the results 
of the studies and exploration work at Ordubad 
will be announced in due course and further 
exploration work is now planned with a view 
to confirming a small gold deposit with 
production potential. 
Outlook
2011 has been a successful year for Anglo 
Asian in terms of solid gold and copper 
production and increasing profitability. 
The year ahead looks very promising as 
we advance our flagship mining operation 
Gedabek, continuing exploration to increase 
the resource base and define reserves and in 
turn increasing the life of mine. In addition 
the gold production target is 54,000 ounces 
for FY 2012 and the decision to build an 
agitation leaching plant to further improve 
gold recoveries marks an exciting time in 
Gedabek’s development and its future 
success as the first gold mine in Azerbaijan 
in modern times. In addition, we remain 
committed to developing Gosha and 
enhancing our production profile by 
commencing development of a second 
mining operation in the second half of 2013. 
I therefore believe that we are in a strong 
position to generate value for shareholders 
during the coming year and look forward 
to updating shareholders regularly on 
our progress.
Reza Vaziri 
President and Chief Executive
22 May 2012
Adit at Gosha
*  The 50% increase in the Updated Mineral Resources Report does not take in to account the ore that has been 
mined at Gedabek from the date of the first report October 2010 to now and ore that is currently in the leach 
pad process, or contained in ore stock piles. 10 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Introduction
I am pleased to report that in 2011 Anglo 
Asian generated revenues of US$83,753,311 
(2010: US$72,012,543) as a result of gold, 
silver and copper concentrate sales from 
the Gedabek mine. 
US$78,756,649 of the revenues (2010: 
US$72,012,543) were generated from the sale 
of Anglo Asian’s share of the production 
of dore bars for the year which comprised 
49,304 ounces of gold and 34,593 ounces 
of silver (2010: 57,398 ounces of gold and 
35,922 ounces of silver) at an average price 
of US$1,573 per ounce and US$35 per ounce 
respectively (2010: US$1,241 per ounce and 
US$22 per ounce). In addition, Anglo Asian 
generated revenue from the sale of copper 
concentrate of US$4,996,662 (2010: US$ nil). 
The Group incurred mining cost of sales 
of US$40,717,112 (2010: US$40,639,430) 
and therefore reported a gross profit of 
US$43,036,199 for 2011 (2010: US$31,373,113). 
The Group incurred administration expenses 
of US$6,021,274 (2010: US$5,126,926) and 
finance costs for the year of US$3,270,909 
(2010: US$6,314,522). The Group recorded 
profit before tax for the year of US$31,623,383 
(2010: US$19,798,377). The finance costs for 
the year comprise interest on the credit 
facilities and loans, interest on letters 
of credit and accretion expenses on the 
rehabilitation provision. 
During 2011, the Group reduced its 
outstanding loan with IBA from US$29,627,007 
to US$13,041,000. In October 2011, Anglo 
Asian negotiated a reduction in the annual 
interest rate from 15% to 12%.
The table 5 below shows the schedule 
of repayments for the IBA loan. 
During 2011, Anglo Asian repaid all of the 
outstanding balance of US$998,663 of the 
loan owed to the Company’s CEO Reza Vaziri. 
Remaining debt at 31 December 2011 stands 
at US$13,041,000 (2010: US$30,625,670), all 
due to IBA. 
The Group held cash balances at 
31 December 2011 of US$9,938,594 
(2010: US$5,110,851) and inventories at cost 
of US$27,301,183 (2010: US$16,354,968). 
Net assets of the Group were US$76,867,936 
(2010: US$58,018,453).
During the year, exploration and evaluation 
expenditure of US$4,956,336 (2010: 
US$3,449,470) was incurred and capitalised. 
The Group was charged corporation tax during 
the year of US$4,950,289 (2010: US$ nil). 
At 31 December 2011, R.V. Investment 
Group Services LLC, the Group entity party 
to the PSA, had utilised all its cumulative 
carried forward tax losses (2010: cumulative 
carried forward loss of US$13,394,919). The 
Company has booked a deferred tax liability 
of US$7,900,635 in 2011 (2010: US$4,560,934), 
bringing the total deferred tax liability 
provision to US$12,461,569 
(2010: US$4,560,934).
Financial review
In summary
 > Net assets of the Group 
were US$76,867,936 
(2010: US$58,018,453)
 > The Group recorded profit 
before tax for the year of 
US$31,623,383 (2010: 
US$19,798,377)
“ I am pleased to report that in 2011 Anglo Asian 
generated revenues of US$83,753,311 
(2010: US$72,012,543).”
Andrew Herbert
Chief Financial Officer
Table 5
  2012 2013 Total 
  US$ US$ US$
Repayment schedule for IBA loans  11,220,000 1,821,000 13,041,000   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 11
PSA
Under the terms of the PSA in place with 
the Government of Azerbaijan, the Company 
and the Government of Azerbaijan share 
commercial products of each mine. Until 
the time that Anglo Asian has recovered all 
its carried forward, unrecovered costs, the 
Government of Azerbaijan effectively takes 
12.75% of commercial products of each 
mine, with the Company taking 87.25% 
(being 75% for capital and operating costs 
plus 49% of the remaining 25% balance). 
The Company expects that it will not have 
recovered all its costs by the end of 2012 and 
that the ratio of sharing commercial products 
for the Gedabek mine of 87.25% to Anglo 
Asian and 12.75% to the Government of 
Azerbaijan will continue throughout the year. 
Once all prior year costs are recovered, 
the Company can continue with cost recovery 
of up to 75% of the value of commercial 
products, before the remaining product 
revenues are shared between the Company 
and the Government of Azerbaijan in a 49% 
to 51% ratio. The Company can recover the 
following costs:
 > all direct operating expenses of 
Gedabek mine;
 > all exploration expenses incurred on the 
Gedabek Contract Area;
 > all capital expenditure incurred on the 
Gedabek mine;
 > an allocation of corporate overheads 
- currently, overheads are apportioned to 
Gedabek according to the ratio of direct 
capital and operating expenditure at 
Gedabek Contract Area compared with 
direct capital and operational expenditure 
at Gosha and Ordubad Contract Areas; and
 > an imputed interest rate of USD LIBOR + 
4% per annum on any unrecovered costs.
Going concern
The Directors have prepared the consolidated 
financial statements on a going concern basis 
after reviewing the Group’s forecast cash 
position for the period ending 30 June 2013 
and satisfying themselves that the Group will 
have sufficient funds on hand to realise its 
assets and meet its obligations as and when 
they fall due. 
Depreciation/amortisation
As described in note 3 of the annual report, 
the accumulated mine development costs 
within producing mines are depreciated/
amortised on a unit-of-production basis over 
the economically recoverable reserves of the 
mine concerned, except in the case of assets 
whose useful life is shorter than the life of 
the mine, in which case the straight line 
method is applied. The unit of account for 
run of mines (‘ROM’) costs and for post-ROM 
costs are recoverable ounces of gold. An 
amount of 323,000 ounces of recoverable 
gold has been used to determine depreciation/ 
amortisation on accumulated mine 
development costs. It is expected that as a 
result of the JORC compliant reserve report 
that is expected to be published in Q2 2012, 
the Group will revise its estimate of recoverable 
gold which it uses to determine depreciation/ 
amortisation on accumulated mine 
development costs.
Commodity price risk
The Group’s revenues are exposed to 
fluctuations in the price of gold, silver 
and copper. Anglo Asian currently does not 
hold any financial instruments to hedge the 
commodity price risk on its expected future 
production; however, the Board will review 
this exposure and the requirement for 
hedging activities on an ongoing basis.
Foreign currency risk
The Group reports in US dollars and a large 
proportion of its business is conducted in 
US dollars. It also conducts business in 
Australian dollars, Azerbaijan manats and 
UK sterling. The Group does not currently 
hedge its exposure to other currencies 
although it will review this periodically if 
the volume of non-US Dollar transactions 
increases significantly.
Liquidity and interest rate risk
The Group has not used any interest rate 
swaps or other instruments to manage its 
interest rate profile during 2011 but will 
review this requirement on a periodic basis. 
Interest rates on current loans are fixed and 
there is no floating rate debt.
Board approval is required for all new 
borrowing facilities. At the year end the 
Group’s only interest rate exposure was 
on cash held in the bank. During the year 
it had entered into short-term deposits 
which included overnight, weekly and 
monthly up to 12 months; however, it held 
no short-term deposits as at the year end.
Market risk
Exposure to interest rate fluctuations is 
minimal as the Group currently has no 
floating rate debt. Interest rates on UK 
Sterling and US Dollar deposits have been 
at historic lows during the current year. 
The levels of deposits held by the Group 
have also been low; therefore, any impact 
of changing rates is minimal. The Group is 
exposed to fluctuations in commodity prices 
now that production has commenced.
Operational risk
There is exposure to levels of production as 
a result of unforeseen operational problems 
or machinery malfunction and therefore 
operating costs for commercial production 
may remain subject to variation from those 
forecast by the Directors. The Group will 
monitor progress on delays and costs on 
a regular basis.
Andrew Herbert
Chief Financial Officer
22 May 2012
Approval to build second gold mine 
Having gained approval in May 2012 from the 
Ministry of Ecology and Natural Resources for 
a Development and Production Programme, 
the Company is focussed on developing the 
Gosha Gold Deposit into a small, profitable, 
high grade underground gold mine producing 
gold at an average rate of 10,000 to 15,000 
ounces per annum for a period of up to five 
years.  Gosha, located 50km away from 
Gedabek, will be the Company’s second gold 
mine and is expected to go into development 
H2 2013. It is also anticipated that further 
drilling campaigns at Gosha will be 
undertaken to increase the economics of the 
proposed mine.  12 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Mr. Khosrow Zamani
Non-executive Chairman, Age 69
Khosrow Zamani was Director of the 
southern Europe and central Asia 
Department of the International Finance 
Corporation (‘IFC’), the private sector lending 
arm of the World Bank, from March 2000 
to July 2005. He was responsible for the 
IFC investment programme and strategy 
in 15 countries across the region. Whilst a 
Director at IFC, Khosrow was instrumental 
in building the IFC investment portfolio in 
the region with several new initiatives, 
particularly in central Asia and Caucasia. He 
oversaw the IFC portfolio of more than US$2 
billion, diversified across the financial, oil 
and gas, mining and manufacturing sectors. 
Mr. Zamani has over 30 years of experience 
in investment and project finance and 
banking in emerging markets. He holds 
a MSc in Engineering from the USA and 
a Master of Business Operations and 
Management from the UK. He is currently 
a member of the Board of Directors of 
some banks and financial services and 
private equity funds active in CIS, central 
Asia and Caucasia.
Mr. Reza Vaziri
President and Chief Executive, Age 59
Reza Vaziri has been actively involved in 
business in the Republic of Azerbaijan 
since just after its independence. Since 
RVIG, now Anglo Asian’s subsidiary, signed 
a Production Sharing Agreement with the 
Government of the Republic of Azerbaijan 
(the ‘Government’), Reza has been focused 
on developing Anglo Asian Mining plc 
(the ‘Company’) key gold/copper/silver 
resources with the objective of establishing 
Anglo Asian as a significant gold producer 
in the Caucasia and central Asia region. 
Prior to his business career, Reza held a 
number of high-ranking positions in the 
pre-revolutionary Iranian Government. He 
was the Head of the Foreign Relations Office 
at the Ministry of the Imperial Court of Iran. 
At the time of the revolution, he was Chief 
of Office of Political and International Affairs. 
Reza holds a law degree from the National 
University of Iran. As founder and Co-Chairman 
for life of the Board of Directors of the US 
– Azerbaijan Chamber of Commerce with 
James A. Baker IV, Reza dedicates much 
of his time furthering business relations 
between the two countries. Reza serves 
alongside such Directors as: James Baker 
III, Zbigniew Brezinski, Governor John Sununu 
and Henry Kissinger. Reza resides in Baku, 
London and Washington, DC.
Mr. Richard Round FCCA
Non-executive Director, Age 54
Richard Round (FCCA) began his career with 
British Coal in 1977. Richard has since held 
a number of Finance Director roles in 
various public and private mining, energy, 
engineering and oil and gas service groups 
including Ferrum Holdings plc, Consolidated 
Supply Management Limited, Mining 
(Scotland) Group, Cambrian Mining PLC, 
Lubel Coal Company Limited, Novera Energy 
plc and also Anglo Asian Mining plc where 
he stepped down in July 2008 and took up 
the position of Non-executive Director. 
Richard is now Chief Financial Officer of 
Aquamarine Power a wave power developer 
in Scotland.
Board of Directors
Governor John H Sununu
Non-executive Director, Age 72
Governor John Sununu received a PhD 
from Massachusetts Institute of Technology 
and taught engineering at Tufts University 
for 16 years. He served three terms as 
the Governor of New Hampshire before 
President George H.W. Bush appointed him 
Chief of Staff in 1989, a position that he held 
until March 1992. After his tenure as Chief of 
Staff, he co-hosted CNN’s Crossfire, ran an 
engineering firm, and then, in 2004, served 
as the visiting Roy M. and Barbara Goodman 
Family Professor of Practice in Public 
Service at the Kennedy School of Government 
at Harvard University. John is a former partner 
in Trinity International Partners, a private 
financial firm, and currently serves as 
President of JHS Associates Ltd.
Professor John Monhemius
Non-executive Director, Age 69
Emeritus Professor John Monhemius held 
the Roy Wright Chair in Mineral and 
Environmental Engineering at the Royal 
School of Mines, Imperial College, London, 
until 2004, when he retired from full-time 
academic work. From 2000 to 2004, he 
was Dean of the Royal School of Mines. 
He has more than 40 years of experience 
of academic and industrial research 
and development in hydrometallurgy 
and environmental control in mining and 
metallurgical processes, particularly in the 
management of toxic wastes and effluents, 
and he has acted as a consultant to many 
large mining and chemical companies. 
Professor Monhemius has published over 
130 papers of scientific literature and he has 
supervised more than 30 PhD students. 
From 1986–96, he was a co-founder and 
Director of Consort Research Ltd, a 
consultancy specialising in gold and base 
metal ore processing, and he is a former 
Director of Obtala Resources plc.   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 13
Directors’ report
The Directors submit their report and the consolidated financial statements of Anglo Asian Mining PLC for the year ended 31 December 2011.
Principal activities
The principal activity of Anglo Asian Mining PLC is that of a holding company and a provider of support and management services to 
its operating subsidiary R.V. Investment Group Services LLC (‘RVIG’). The Company, together with its subsidiaries (together referred to 
as the “Group”; see also note 16 on page 35), is involved in the exploration and development of gold and copper projects in the Republic 
of Azerbaijan and the operation of the Gedabek mine in the Republic of Azerbaijan. 
Review of developments and future prospects
The record of the business during the year and an indication of likely further developments can be found in the Chairman’s Statement 
on pages 4 and 5, the Chief Executive’s Review on pages 6 to 9 and the Finance Review on pages 10 and 11.
The Group’s net profit after taxation for the year ended 31 December 2011 amounted to US$18,772,459 (2010: US$15,237,443).
Business review
A business overview is discussed on pages 4 and 5 of the Chairman’s Statement. Other risks are discussed in the Finance Review on pages 
10 and 11.
Share capital
Details of the movements in share capital during the period are set out in the consolidated statement of changes in equity in the consolidated 
financial statements.
Directors
The current Directors and their biographies are set out on page 12.
Directors’ interests
The Directors in office during the year and their interests in ordinary shares of the Company at 31 December 2011 and 31 December 2010 were:
       31 December  31 December 
       2011  2010 
       Number of  Number of 
Directors      shares shares
Khosrow Zamani       793,184 243,184
Reza Vaziri      32,796,830 32,796,830
Richard Round       153,958 213,958
John Sununu      10,674,540 10,674,540
John Monhemius       55,556 55,556
A total of 650,000 (2010: 1,451,358) shares were issued during the year to the Directors and employees  as a result of options exercised 
bringing the total number of ordinary shares with voting rights to 111,047,307 at 31 December 2011 (2010: 110,397,307).
The interests of the Directors, financial advisers and staff in options to subscribe for ordinary shares of the Company were:
  Exercise  Latest  As at  Granted Exercised Forfeited Lapsed  As at 
  price  exercise  1 January during during in the in the 31 December 
  (p) date  2011 the year  the year  year year  2011
Directors
Khosrow Zamani 16.5 1 June 2017 100,000 — — — — 100,000
  12.0 27 July 2017 500,000 —  —  —  —  500,000
  4.8 4 December 2018 550,000 — (550,000) — — —
Richard Round  77.0 26 July 2015 432,900 —  —  —  —  432,900
  42.5 12 April 2016 495,859 — — — — 495,859
  12.0 27 July 2017 600,000 — — — — 600,000
John Monhemius 11.5 14 August 2019 150,000 —  —  —  —  150,000
Others        
  97.0 11 August 2015 247,925 — — — — 247,925
  8.9 1 August 2018 200,000 —  —  —  —  200,000
  4.8 4 December 2018 250,000 — (100,000) — — 150,000
  35.4 19 October 2021 — 225,000 —  — — 225,000
    3,526,684 225,000 (650,000) — — 3,101,684
All options can be exercised at various dates up to 19 October 2021.
Directors’ indemnities
The Group has made qualifying third party indemnity provision for the benefit of its Directors which were made during the year and remain 
in force at the date of this report. 14 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Directors’ report continued
Going concern
The Directors have prepared the consolidated financial statements on a going concern basis after reviewing the Group’s cash position for 
the period to 30 June 2013 and satisfying themselves that the Group will have sufficient funds on hand to realise its assets and meet its 
obligations as and when they fall due. 
The Group’s business activities, together with the factors likely to affect its future development, performance and position, can be found in 
the Chairman’s Statement on pages 4 and 5 and the Chief Executive’s Review on pages 6 to 9. The financial position of the Group, its cash 
flows, liquidity position and borrowing facilities are described in the Finance Review on pages 10 and 11. In addition, note 23 to the financial 
statements includes the Group’s objectives, policies and processes for managing its capital, its financial risk management objectives, details 
of its financial instruments and its exposures to credit risk and liquidity risk.
The Group is currently operating in favourable market conditions for its main product with the gold spot price achieving record nominal high 
prices in 2011 and believes that the spot price of gold will remain high compared to historical prices. The Group is able to produce gold at a 
comparatively low unit cost, ensuring a large margin is achieved on production. Loans have been paid ahead of their scheduled repayment 
date in 2011. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully under the 
current uncertain economic outlook.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue 
in operational existence for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in preparing the annual 
report and accounts.
Charitable and political contributions
There were no charitable or political contributions made during the year (2010: US$ nil).
Substantial and significant shareholdings
The Company has been informed that on 22 May 2012 the following shareholders held substantial and significant holdings in the issued 
ordinary shares of the Company: 
       Number of  
       ordinary  Holding 
Shareholders      shares %
Reza Vaziri      32,796,830 29.53
Khagani Bashirov      18,087,758 16.29
John Sununu      10,674,540 9.61
Limelight Industrial Developments Limited     4,038,600 3.64
The number of shares in issue at this date was 111,047,307.
Payment policy
It is the Group’s policy to pay suppliers in accordance with agreed terms, provided the supplier has also complied with agreed terms and 
conditions. The average creditor days is 24 (2010: 27).
Financial instruments
Financial instruments are disclosed in note 23 to the consolidated financial statements.
Disclosure of information to auditors
Having made enquiries of fellow Directors, each Director confirms that so far as each Director is aware, there is no relevant audit information 
of which our auditors are unaware and each Director has taken all the steps that he ought to have taken in order to make himself aware of 
any relevant audit information and to establish that our auditors are aware of that information.
Annual General Meeting
The Company will hold its next Annual General Meeting on 25 June 2012 at which this report and consolidated financial statements will be 
presented. Notification of the meeting has been sent along with this report.
Related party transactions
Related party transactions are disclosed in note 28 to the consolidated financial statements.
Auditors
Ernst & Young LLP were appointed as auditors of the Company for the year ended 31 December 2011. Ernst & Young LLP have expressed their 
willingness to continue in office as auditors and a resolution to re-appoint them will be proposed at the forthcoming Annual General Meeting.
Corporate governance
A report on corporate governance and compliance with provisions of the Combined Code is set out on page 16. 
Subsequent events 
Subsequent events are disclosed in note 29 to the consolidated financial statements.  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 15
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Directors’ Report and the consolidated financial statements in accordance with applicable 
law and regulations. Company law requires the Directors to prepare financial statements for each financial year . Under that law the Directors 
have, as required by the AIM Rules of the London Stock Exchange, elected to prepare the Group financial statements in accordance with 
International Financial Reporting Standards (‘IFRS’) as adopted by the European Union and have elected to prepare the financial statements 
of the Company (the parent company) in accordance with UK Generally Accepted Accounting Principles (‘UK GAAP’).
In the case of the Group’s IFRS financial statements, the Directors are required to prepare Group financial statements for each financial 
year which present fairly the financial position of the Group and the financial performance and cash flows of the Group for that period. 
In preparing the Group financial statements the Directors are required to: 
 > select suitable accounting policies in accordance with International Accounting Standard (IAS) 8 ‘Accounting Policies, Changes in 
Accounting Estimates and Errors’ and then apply them consistently; 
 > present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; 
 > provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand 
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance;
 > state whether they have been prepared in accordance with IFRS; 
 > prepare the accounts on a going concern basis unless, having assessed the ability of the Group to continue as a going concern, 
management either intends to liquidate the entity or to cease trading, or have no realistic alternative but to do so; and
 > make judgements and estimates that are reasonable and prudent.
In the case of the Company’s UK GAAP financial statements, the Directors are required to prepare financial statements for each financial year 
which give a true and fair view of the state of affairs of the Company. In preparing these financial statements, the Directors are required to: 
 > select suitable accounting policies and then apply them consistently;
 > make judgements and estimates that are reasonable and prudent;
 > state whether they have been prepared in accordance with UK GAAP; and 
 > prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and 
disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial 
statements comply with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the 
Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s 
website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information 
included in annual reports may differ from legislation in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
 > the financial statements, prepared in accordance with IFRS, give a true and fair view of the assets, liabilities, financial position and profit 
or loss of the Company and the undertakings included in the consolidation taken as a whole; and
 > the management report, which is incorporated into the Directors’ Report, includes a fair review of the development and performance 
of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with 
a description of the principal risks and uncertainties that they face.
By order of the Board
Andrew Herbert
Company Secretary
22 May 2012 16 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Introduction
Although the rules of AIM do not require the Company to comply with the Combined Code on Corporate Governance (the ‘Code’), the 
Company fully supports the principles set out in the Code and will attempt to comply wherever possible, given both the size and resources 
available to the Company. Details are provided below of how the Company applies the Code. 
The Board
The Board of Directors currently comprises one Executive Director and four Non-executive Directors, one of whom is the Chairman. 
The roles of Chairman and Chief Executive are split in line with the recommended policy.
The Board meets regularly throughout the year and receives a Board pack comprising individual reports from the Executive Director together 
with any other material deemed necessary for the Board to discharge its duties. The Board also conducts telephone Board meetings as 
issues arise which require Board attention. It is the Board’s responsibility to formulate, review and approve the Group’s strategy, budgets 
and major items of expenditure. The Board sets the Group’s objectives and policies and monitors the implementation by the Executive team.
The Board considers two of the Non-executive Directors other than the Chairman to be independent.
Audit Committee
The Board has an Audit Committee which comprises Mr. Richard Round and Mr. John Sununu and is scheduled to meet at least twice a year. 
The external auditors attend the meetings and the Chief Executive and Chief Financial Officer attend by invitation. It is the Audit Committee’s 
role to provide formal and transparent arrangements for considering how to apply the financial reporting and internal control requirements 
of the Code, whilst maintaining an appropriate relationship with the independent auditors of the Group.
Remuneration Committee
The Board has a Remuneration Committee which comprises Mr. Khosrow Zamani and Mr. John Sununu and meets as required. It is the 
Remuneration Committee’s role to establish a formal and transparent policy on Executive remuneration and to set remuneration packages 
for individual Directors.
Nomination Committee
The Board has a Nomination Committee which comprises Mr. Khosrow Zamani and Mr. John Sununu. It is the role of the Nomination 
Committee to review and consider the Board structure and composition and it meets as required to consider and make recommendations 
on the appointment of Directors to the Board.
Health, Safety, Environment and Technology Committee
The Board has a Health, Safety, Environment and Technology Committee which comprises Mr. John Monhemius and Mr. Reza Vaziri 
and meets as required. The Committee’s primary function is to assist the Board of Directors of the Company in fulfilling its oversight 
responsibilities in the following areas:
 > the health, safety, environmental and technological issues relating to the Company; 
 > the Company’s compliance with corporate policies that provide processes, procedures and standards to follow in accomplishing the 
Company’s goals and objectives relating to health, safety and environmental issues, to ensure that the Company’s operations and work 
practices comply as far as is practicable with the best international standards; and 
 > the management of risk related to health, safety, environmental and technological issues.
Shareholder relations
The Company meets with its institutional shareholders and analysts as appropriate and encourages communication with private 
shareholders via the Annual General Meeting (‘AGM’). In addition, the Company uses the annual report and accounts, interim statement 
and website (www.angloasianmining.com) to provide further information to shareholders.
Internal control and risk management
The Board is responsible for the system of internal control and for reviewing its effectiveness. Such systems are designed to manage rather 
than eliminate risks and can provide only reasonable and not absolute assurance against material misstatement or loss. For each year, on 
behalf of the Board, the Audit Committee reviews the effectiveness of these systems. This is achieved primarily by considering the risks 
potentially affecting the Group and discussions with the external auditors.
The Group does not currently have an internal audit function due to the small size of the Group and limited resources available.
A comprehensive budgeting process is completed once a year and is reviewed by the Board and where appropriate revised forecasts are 
prepared and also reviewed by the Board. The Group’s results, as compared against budget, are reported to the Board on a monthly basis 
and discussed in detail at each meeting of the Board.
The Group maintains appropriate insurance cover in respect of legal actions against the Directors as well as against material loss or claims 
against the Group and the Board reviews the adequacy of the cover regularly.
Corporate governance  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 17
We have audited the Group financial statements of Anglo Asian Mining PLC for the year ended 31 December 2011 which comprise the 
consolidated statement of financial position as at 31 December 2011, and the consolidated income statement, consolidated statement of 
comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows for the year then ended and the 
related notes 1 to 29. The financial reporting framework that has been applied in their preparation is applicable law and International 
Financial Reporting Standards (‘IFRSs’) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 15, the Directors are responsible for the preparation of 
the Group financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion 
on the Group financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: 
whether the accounting policies are appropriate to the Group’s circumstances and have been consistently applied and adequately disclosed; 
the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. 
In addition, we read all the financial and non-financial information in the Directors’ Report to identify material inconsistencies with the audited 
financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the Group financial statements:
 > give a true and fair view of the state of the Group’s affairs as at 31 December 2011 and of its profit for the year then ended;
 > have been properly prepared in accordance with IFRSs as adopted by the European Union; and
 > have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the Group financial statements are prepared 
is consistent with the Group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 > certain disclosures of Directors’ remuneration specified by law are not made; or
 > we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the parent company financial statements of Anglo Asian Mining PLC for the year ended 31 December 2011. 
Steven Dobson (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
22 May 2012
1.  The maintenance and integrity of the Anglo Asian Mining PLC website is the responsibility of the Directors; the work carried out by the auditors does not involve 
consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they 
were initially presented on the website.
2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 
Independent auditor’s report
to the members of Anglo Asian Mining PLC 18 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Consolidated income statement
for the year ended 31 December 2011
      Year ended Year ended 
      31 December 31 December 
      2011 2010 
     Notes US$ US$
Revenue    5 83,753,311 72,012,543
Cost of sales     (40,717,112)  (40,639,430)
Gross profit     43,036,199 31,373,113
Other income    6 1,049,579  719,446
Administrative expenses     (6,021,274) (5,126,926)
Other operating expense    6 (3,221,212) (852,734)
Operating profit    7 34,843,292  26,112,899 
Finance income    5 51,000 —
Finance costs    10 (3,270,909) (6,314,522)
Profit before tax     31,623,383  19,798,377
Income tax expense    11 (12,850,924) (4,560,934)
Profit for the period attributable to the equity holders of the parent   18,772,459  15,237,443
Earnings per share for the period attributable to the equity holders of the parent   
Basic earnings per share (cents per share)    12 16.91 13.88
Diluted earnings per share (cents per share)    12 16.47 13.37
      Year ended Year ended 
      31 December 31 December 
      2011 2010 
      US$ US$
Profit for the year     18,772,459  15,237,443
Total comprehensive income for the year     18,772,459  15,237,443
Attributable to the equity holders of the parent     18,772,459  15,237,443
Consolidated statement of comprehensive income
for the year ended 31 December 2011  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 19
Consolidated balance sheet
as at 31 December 2011
      As at As at 
      31 December 31 December 
      2011 2010 
     Notes US$ US$
Non-current assets   
Intangible assets    13 28,837,939 34,469,441
Property, plant and equipment    14 43,549,670 43,290,670 
Non-current prepayments    15 292,290 284,461 
      72,679,899 78,044,572
Current assets   
Trade receivables and other assets    17 3,770,996 4,322,094
Inventories    18 27,301,183 16,354,968 
Cash and cash equivalents    19 9,938,594 5,110,851
      41,010,773  25,787,913 
Total assets     113,690,672  103,832,485 
Current liabilities   
Trade and other payables    20 (8,807,760) (9,263,458)
Interest-bearing loans and borrowings    21 (11,307,412) (10,641,996)
      (20,115,172) (19,905,454)
Net current assets     20,895,601  5,882,459 
Non-current liabilities   
Provision for rehabilitation    22 (2,424,995) (1,363,970)
Interest-bearing loans and borrowings    21 (1,821,000) (19,983,674)
Deferred tax liability    11 (12,461,569) (4,560,934) 
      (16,707,564) (25,908,578)
Total liabilities     (36,822,736) (45,814,032)
Net assets      76,867,936 58,018,453
Equity   
Share capital    24 1,967,704 1,957,424
Share premium account     32,139,674 32,101,124
Share-based payment reserve      648,789 638,377
Merger reserve    24 46,206,390 46,206,390
Accumulated loss     (4,094,621) (22,884,862) 
Total equity     76,867,936  58,018,453 
The consolidated financial statements were approved by the Board of Directors and authorised for issue on 22 May 2012. They were signed 
on its behalf by:
Reza Vaziri
Chief Executive 20 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Consolidated cash flow statement
for the year ended 31 December 2011
      Year ended Year ended 
      31 December 31 December 
      2011 2010 
     Notes US$ US$
Net cash provided by operating activities    25 38,075,397  34,367,253 
Investing activities   
Expenditure on property, plant and equipment and mine development   (7,739,793) (8,471,353)
Investment in exploration and evaluation assets including other intangible assets   (5,069,388)  (3,477,014)
Net cash used in investing activities     (12,809,181) (11,948,367)
Financing activities   
Shares issued in lieu of cash and for share options exercised    65,028 184,800
Proceeds from borrowings     — 3,099,100 
Repayments of borrowings     (17,586,663) (15,477,371)
Interest paid     (2,916,838) (5,924,112)
Net cash used in financing activities     (20,438,473) (18,117,583)
Net increase in cash and cash equivalents     4,827,743 4,301,303
Cash and cash equivalents at the beginning of the year   19 5,110,851 809,548
Cash and cash equivalents at the end of the year    19 9,938,594 5,110,851  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 21
Consolidated statement of changes in equity
for the year ended 31 December 2011
     Share-based    
   Share Share payment Merger Accumulated Total 
   capital premium reserve reserve loss equity 
  Notes US$ US$ US$ US$ US$ US$
At 1 January 2010   1,934,363 31,939,385 621,802 46,206,390 (38,122,305) 42,579,635
Profit  for the year  — — — — 15,237,443  15,237,443
Total comprehensive income  — — — — 15,237,443 15,237,443
Shares issued 24 23,061 161,739 — — — 184,800
Share-based payment 
charge for the year 26 — — 16,575 — — 16,575
At 31 December 2010   1,957,424 32,101,124 638,377 46,206,390 (22,884,862) 58,018,453
Profit for the year  — — — — 18,772,459 18,772,459 
Total comprehensive income  — — — — 18,772,459 18,772,459
Shares issued 24 10,280 38,550 — — — 48,830
Options exercised 
during the year  — — (17,782) — 17,782 —
Share-based payment 
charge for the year 26 — — 28,194 — — 28,194
At 31 December 2011  1,967,704 32,139,674 648,789 46,206,390 (4,094,621) 76,867,936  22 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements
for the year ended 31 December 2011
1. Going concern
The Directors have prepared the consolidated financial statements on a going concern basis after reviewing the Group’s cash position for 
the period to 30 June 2013 and satisfying themselves the Group will have sufficient funds on hand to realise their assets and meet their 
obligations as and when they fall due. 
2. General information
Anglo Asian Mining PLC (the ‘Company’) is a public limited company incorporated and operating in the UK under the Companies Act 2006. 
The Group’s ordinary shares are traded on the Alternative Investment Market (‘AIM’) of the London Stock Exchange. The nature of the Group’s 
operations and its principal activities are set out in the Directors’ Report on pages 13 to 15.
These consolidated financial statements are presented in US Dollars. Foreign operations are included in accordance with the policies set out 
in note 3.
3. Significant accounting policies
Basis of preparation
The consolidated financial statements of the Group are presented as required by the Companies Act 2006 and were approved for issue 
on 22 May 2012. These consolidated financial statements, for the year ended 31 December 2011 and 31 December 2010, are prepared in 
accordance with the International Financial Reporting Standards (‘IFRS’) as adopted by the EU. The consolidated financial statements have 
also been prepared in accordance with International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations and with those 
parts of the Companies Act 2006 applicable to companies reporting under IFRS. 
The consolidated financial statements have been prepared under the historical cost convention unless described otherwise in the accounting 
policy below.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Group made up to 31 December each year. Control is 
achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
All intra-group transactions, balances, income and expenses are eliminated on consolidation. 
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
Changes in accounting policies, new standards and interpretations  
The accounting policies adopted are consistent with those of the previous financial year except for the following new amendments to the 
standards adopted by the Group on 1 January 2011:
IAS 24 ‘Related Party Disclosures’ (Amendment)
The IASB issued an amendment to IAS 24 that clarifies the definitions of a related party. The new definitions emphasise a symmetrical 
view of related party relationships and clarify the circumstances in which persons and key management personnel affect related party 
relationships of an entity. In addition, the amendment introduces an exemption from the general related party disclosure requirements for 
transactions with government and entities that are controlled, jointly controlled or significantly influenced by the same government as the 
reporting entity. The adoption of this interpretation had no effect on the consolidated financial statements of the Group.
IAS 32 ‘Financial Instruments: Presentation – Classification of Rights Issues’ (Amendment)
The amendment to IAS 32 is effective for annual periods beginning on or after 1 February 2010 and amended the definition of a financial 
liability in order to classify rights issues (and certain options or warrants) as equity instruments in cases where such rights are given pro rata 
to all of the existing owners of the same class of an entity’s non-derivative equity instruments, or to acquire a fixed number of the entity’s 
own equity instruments for a fixed amount in any currency. The adoption of this interpretation had no effect on the consolidated financial 
statements of the Group.
IFRIC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’
IFRIC 19 is effective for annual periods beginning on or after 1 July 2010. The interpretation clarifies that equity instruments issued to a creditor 
to extinguish a financial liability qualify as consideration paid. The equity instruments issued are measured at their fair value. In case that this 
cannot be reliably measured, the instruments are measured at the fair value of the liability extinguished. Any gain or loss is recognised 
immediately in profit or loss. The adoption of this interpretation had no effect on the consolidated financial statements of the Group.
Improvements to IFRSs
In May 2010, the IASB issued its third omnibus of amendments to its standards, primarily with a view to removing inconsistencies and 
clarifying wording. There are separate transitional provisions for each standard. The adoption of the following amendments resulted 
in changes to accounting policies, but had no impact on the financial position or performance of the Group:
IFRS 7 Financial Instruments — Disclosures: The amendment was intended to simplify the disclosures provided by reducing the volume of 
disclosures around collateral held and improving disclosures by requiring qualitative information to put the quantitative information in context. 
IAS 1 Presentation of Financial Statements: The amendment clarifies that an entity may present an analysis of each component of other 
comprehensive income either in the statement of changes in equity or in the notes to the financial statements.
Other amendments resulting from improvements to IFRSs to the following standards did not have any impact on the accounting policies, 
financial position or performance of the Group:
 > IFRS 3 Business Combinations (Measurement options available for non-controlling interest);
 > IFRS 3 Business Combinations (Contingent consideration arising from business combination prior to adoption of IFRS 3 (as revised in 2008));
 > IFRS 3 Business Combinations (Un-replaced and voluntarily replaced share-based payment awards);  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 23
3. Significant accounting policies continued
Improvements to IFRSs continued
 > IAS 27 Consolidated and Separate Financial Statements;
 > IAS 34 Interim Financial Statements;
 > International Financial Reporting Interpretations Committee (‘IFRIC’) 13 Customer Loyalty Programmes (determining the fair value 
of award credits); and
 > IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment).
New standards and amendments issued, but not yet effective
Standards issued, but not yet effective up to the date of issuance of the Group’s financial statements are listed below. This listing of 
standards and interpretations issued are those that the Group reasonably expects to have an impact on disclosures, financial position 
or performance when applied at a future date. The Group intends to adopt these standards when they become effective.
IAS 1 Financial Statement Presentation — Presentation of Items of Other Comprehensive Income
The amendments to IAS 1 change the grouping of items presented in Other Comprehensive Income. Items that could be reclassified (or 
‘recycled’) to profit or loss at a future point in time (for example, upon derecognition or settlement) would be presented separately from items 
that will never be reclassified. The amendment affects presentation only and has no impact on the Group’s financial position or performance. 
The amendment becomes effective for annual periods beginning on or after 1 July 2012.
IFRS 7 Financial Instruments: Disclosures — Enhanced Derecognition Disclosure Requirements
The amendment requires additional disclosure about financial assets that have been transferred, but not derecognised to enable the user 
of the Group’s financial statements to understand the relationship with those assets that have not been derecognised and their associated 
liabilities. In addition, the amendment requires disclosures about continuing involvement in derecognised assets to enable the user to 
evaluate the nature of, and risks associated with, the entity’s continuing involvement in those derecognised assets. The amendment becomes 
effective for annual periods beginning on or after 1 July 2011. The amendment affects disclosure only and has no impact on the Group’s 
financial position or performance.
IFRS 9 Financial Instruments: Classification and Measurement
IFRS 9 as issued reflects the first phase of the IASBs work on the replacement of IAS 39 and applies to classification and measurement of 
financial assets and financial liabilities as defined in IAS 39. The standard is effective for annual periods beginning on or after 1 January 2013, 
although this effective date is tentative as the standard has not yet been adopted by European Union. In subsequent phases, the IASB will 
address hedge accounting and impairment of financial assets. The completion of this project is expected over the first half of 2012. The 
adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but will 
potentially have no impact on classification and measurements of financial liabilities. The Group will quantify the effect in conjunction 
with the other phases, when issued, to present a comprehensive picture.
IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements
IFRS 10 replaces the portion of IAS 27 that addresses the accounting for consolidated financial statements. IAS 27, as revised, is limited 
to the accounting for investments in subsidiaries, joint ventures, and associates in separate financial statements. IFRS 10 does not change 
consolidation procedures (i.e., how to consolidate an entity). Rather, IFRS 10 changes whether an entity is consolidated by revising the definition 
of control. The new standards shall be applied retrospectively in accordance with the requirements of IAS 8 Accounting Policies, Changes in 
Accounting Estimates and Errors for changes in accounting policy, with some modifications and is effective for annual periods beginning on 
or after 1 January 2013. The Group is currently assessing the impact that this standard will have on the financial position and performance. 
IFRS 11 Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary Contributions by Venturers. 
IFRS 11 changes the accounting for joint arrangements by moving the old three categories to two new categories: joint venture and joint 
operations. Under this new classification, the structure of the joint arrangement is not the only factor considered when classifying the joint 
arrangement as either a joint operation or a joint venture, which is a change from IAS 31. The parties are required to considered whether 
a separate vehicle exists, and, if so, the legal form of the separate vehicle, the contractual terms and conditions, and other facts and 
circumstances. In addition, IAS 28 was amended to include the application of the equity method to investments in joint ventures. The new 
standards will be applied using a modified retrospective approach and will be effective for annual periods beginning on or after 1 January 2013. 
The adoption of new standards does not have significant impact on the Group’s financial position or performance. 
IFRS 12 Disclosure of Interests in Other Entities 
IFRS 12 applies to an entity that has an interest in subsidiaries, joint arrangements, associates and/or structured entities. The objective of 
the new disclosure requirements is to help the users of financial statements understand the effects of an entity’s interests in other entities 
on its financial position, financial performance and cash flows, as well as the nature of, and the risks associated with, the entity’s interest in 
other entities. IFRS 12 will be applied retrospectively in accordance with requirements of IAS 8 Accounting Policies, Changes in Accounting 
Estimates and Errors for changes in accounting policy, with comparative disclosures required effective for annual periods beginning on or 
after 1 January 2013. The Group is currently assessing the impact that this standard will have on the financial position and performance. 
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is 
required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. 
The Group is currently assessing the impact that this standard will have on the financial position and performance. This standard becomes 
effective for annual periods beginning on or after 1 January 2013. 24 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
3. Significant accounting policies continued
Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements in conformity with IFRS requires management to make judgements, 
estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated 
financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are 
continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are 
believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. In particular, information 
about significant areas of estimation uncertainty considered by management in preparing the consolidated financial statements is described below.
Ore reserves and resources
Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the Group’s mining properties. 
The Group estimates its ore reserves and mineral resources, based on information compiled by appropriately qualified persons relating 
to the geological data on the size, depth and shape of the ore body and requires complex geological judgements to interpret the data. 
The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital 
requirements, and production costs along with geological assumptions and judgements made in estimating the size and grade of the ore 
body. Changes in the reserve or resource estimates may impact upon the carrying value of exploration and evaluation assets, mine 
properties, property, plant and equipment, provision for rehabilitation, and depreciation and amortisation charges.
Exploration and evaluation expenditure (note 13)
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in determining whether it 
is likely that future economic benefits are likely either from future exploitation or sale or where activities have not reached a stage which 
permits a reasonable assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (‘JORC’) resource is 
itself an estimation process that requires varying degrees of uncertainty depending on sub-classification and these estimates directly impact 
the point of deferral of exploration and evaluation expenditure. The deferral policy requires management to make certain estimates and 
assumptions about future events or circumstances, in particular whether an economically viable extraction operation can be established. 
Estimates and assumptions made may change if new information becomes available. If, after expenditure is capitalised, information 
becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalised is written off in the consolidated income 
statement in the period when the new information becomes available.
Inventories (note 18)
Net realisable value tests are performed at least annually and represent the estimated future sales price of the product based on prevailing 
spot metals prices at the reporting date, less estimated costs to complete production and bring the product to sale.
Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces 
based on assay data, and the estimated recovery percentage based on the expected processing method.
Stockpile tonnages are verified by periodic surveys.
Impairment of tangible and intangible assets (note 13 and 14)
The assessment of tangible and intangible assets for any internal and external indications of impairment involves judgement. Each reporting 
period, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that the carrying amount 
exceeds recoverable amount. Recoverable amount is determined as the higher of fair value less costs to sell and value in use. Determining 
whether the projects are impaired requires an estimation of the value in use of the individual areas to which value has been ascribed. The 
value in use calculation requires the entity to estimate the future cash flows expected to arise from the projects and a suitable discount rate 
in order to calculate present value. 
Production start date 
The Group assesses the stage of each mine under construction to determine when a mine moves into the production stage. The criteria used 
to assess the start date are determined based on the unique nature of each mine construction project, such as the complexity of a plant and 
its location. The Group considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and is 
reclassified from ’Assets under construction’ to ’Producing mines’ and ’Property, plant and equipment’. Some of the criteria will include, but 
are not limited to, the following: 
 > the level of capital expenditure compared to the construction cost estimates; 
 > completion of a reasonable period of testing of the mine plant and equipment; 
 > ability to produce metal in saleable form within specifications; and 
 > ability to sustain ongoing production of metal.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and 
costs are either regarded as inventory or expensed, except for costs that qualify for capitalisation relating to mining asset additions 
or improvements, underground mine development or mineable reserve development. This is also the point at which the depreciation/
amortisation recognition commences. 
Contingencies 
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of contingencies 
inherently involves the exercise of significant judgement and estimates of the outcome of future events.   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 25
3. Significant accounting policies continued
Significant accounting judgements, estimates and assumptions continued
Mine rehabilitation provision (note 22) 
The Group assesses its mine rehabilitation provision annually. Significant estimates and assumptions are made in determining the provision 
for mine rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the 
extent and costs of rehabilitation activities, technological changes, regulatory changes, and changes in discount rates. Those uncertainties 
may result in future actual expenditure differing from the amounts currently provided. The provision at the consolidated statement of 
financial position date represents management’s best estimate of the present value of the future rehabilitation costs required. Changes to 
estimated future costs are recognised in the consolidated statement of financial position by either increasing or decreasing the rehabilitation 
liability and rehabilitation asset if the initial estimate was originally recognised as part of an asset measured in accordance with IAS 16 
‘Property, Plant and Equipment’. Any reduction in the rehabilitation liability and therefore any deduction from the rehabilitation asset may not 
exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to the consolidated income statement. 
If the change in estimate results in an increase in the rehabilitation liability and therefore an addition to the carrying value of the asset, 
the entity is required to consider whether this is an indication of impairment of the asset as a whole and test for impairment in accordance 
with IAS 36. If, for mature mines, the revised mine assets net of rehabilitation provisions exceeds the recoverable value, that portion of the 
increase is charged directly to expense. For closed sites, changes to estimated costs are recognised immediately in the consolidated income 
statement. Also, rehabilitation obligations that arose as a result of the production phase of a mine should be expensed as incurred. 
Recovery of deferred tax assets (note 11)
Judgement is required in determining whether deferred tax assets are recognised on the consolidated statement of financial position. Deferred 
tax assets, including those arising from unutilised tax losses, require management to assess the likelihood that the Group will generate taxable 
earnings in future periods, in order to utilise recognised deferred tax assets. Estimates of future taxable income are based on forecast cash 
flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ 
significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at the reporting date could be impacted.
Revenue recognition 
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably 
measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and sales taxes or duty. 
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred, which is 
considered to occur when title passes to the customer. This generally occurs when product is physically transferred to the buyer. 
The following criteria are also met in specific revenue transactions: 
Gold bullion sales 
Revenue from gold bullion sales is brought to account when the significant risks and rewards of ownership have transferred to the buyer 
and selling prices and assay results are known or can be reasonably estimated. Assay results determine content of metal in doré (gold and 
silver), the price of which is determined based on market quotations of each metal. Silver in doré bullions is treated as a by-product and is 
produced together with gold, which is the intended product and is recognised in sales revenue.
Copper concentrate sales
Contract terms for the Group’s sale of gold, silver and copper in concentrate (metal in concentrate) allow for a price adjustment based on 
final assay results of the metal in concentrate to determine the final content. Recognition of sales revenue for these commodities is based 
on the most recently determined estimate of metal in concentrate (based on initial assay results) and the spot price at the date of shipment, 
with a subsequent adjustment made upon final determination and presented as part of “Other Income”.
The terms of metal in concentrate sales contracts with third parties contain provisional pricing arrangements whereby the selling price for 
metal in concentrate is based on average prevailing spot prices during a specified future period after shipment to the customer (the 
‘quotation period’). 
The provisionally priced sales of metal in concentrate contain an embedded derivative, which is required to be separated from the host 
contract for accounting purposes. The host contract is the sale of metals in concentrate and the embedded derivative is the forward contract 
for which the provisional sale is subsequently adjusted. Accordingly the embedded derivative, which does not qualify for hedge accounting, 
is recognised at fair value, with subsequent changes in the fair value recognised in profit or loss each period until final settlement, and 
presented as ‘Other Income’. Changes in fair value over the quotation period and up until final settlement are estimated by reference to 
forward market prices for gold and copper.
Interest revenue 
Interest revenue is recognised as it accrues, using the effective interest rate method. 
Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date: whether 
fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. 
Operating lease payments are recognised as an expense in the consolidated income statement on a straight line basis over the lease term. 
Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are 
capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease 
payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of 
interest on the remaining balance of the liability. Finance charges are recognised in the consolidated income statement. Leased assets are 
depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end 
of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
The Group had no significant finance leases during 2011 and 2010. 26 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
3. Significant accounting policies continued
Foreign currencies
The individual financial statements of each Group company are maintained in the currency of the primary economic environment in which 
it operates its functional currency. For the purpose of the consolidated financial statements, the results and financial position of each 
Group Company are expressed in US Dollars, the functional currency of the Company and the presentation currency for the consolidated 
financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency 
(foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each consolidated statement of 
financial position date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on 
the consolidated statement of financial position date. Non-monetary items that are measured in terms of historical cost in a foreign currency 
are not retranslated.
Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are included in the 
consolidated income statement for the period. 
Taxation
Current and deferred income taxes
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the 
balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets 
are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses. Deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry 
forward of unused tax credits and unused tax losses can be utilised. 
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, based 
on tax rates (and tax laws) that have been enacted or substantively enacted at the consolidated statement of financial position date. Deferred 
tax is charged or credited in the Consolidated Income Statement, except when it relates to items charged or credited directly to equity, 
in which case the deferred tax is also dealt with in equity.
Deferred tax assets are not recognised in respect of temporary differences relating to tax losses where there is insufficient evidence that the 
asset will be recovered. Unrecognised deferred tax assets are reassessed at each consolidated statement of financial position date and are 
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
The Group recognises neither the deferred tax asset regarding the temporary difference on the rehabilitation liability, nor the corresponding 
deferred tax liability regarding the temporary difference on the rehabilitation asset.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated income 
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are 
never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted 
at the consolidated statement of financial position date.
Value-added taxes (‘VAT’)
The Group pays VAT on purchases made in both the Republic of Azerbaijan and the UK. Under both jurisdictions, VAT paid is refundable. 
Azerbaijani jurisdiction permits offset of Azerbaijani VAT credit against other taxes payable to the state budget.
Transactions with related parties
For the purposes of these financial statements, parties are considered to be related if one party has the ability to control the other party or 
exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party 
relationship, attention is directed to the substance of the relationship, not merely the legal form.
Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected 
on the same terms, conditions and amounts as transactions between unrelated parties.
It is the nature of transactions with related parties that they cannot be presumed to be carried out on an arm’s length basis.
Borrowing costs 
Borrowing costs directly relating to the acquisition, construction or production of a qualifying capital project under construction are 
capitalised and added to the project cost during construction until such time the assets are considered substantially ready for their intended 
use i.e. when they are capable of commercial production. Where funds are borrowed specifically to finance a project, the amount capitalised 
represents the actual borrowing costs incurred. Where surplus funds are available for a short term out of money borrowed specifically to 
finance a project, the income generated from the temporary investment of such amounts is also capitalised and deducted from the total 
capitalised borrowing cost. Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated 
using a weighted average of rates applicable to relevant general borrowings of the Group during the period. All other borrowing costs are 
recognised in the consolidated income statement in the period in which they are incurred. 
Even though exploration and evaluation assets can be qualifying assets, they generally do not meet the ‘probable economic benefits’ test. 
Any related borrowing costs are therefore generally recognised in the consolidated income statement in the period they are incurred.   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 27
3. Significant accounting policies continued
Intangible assets 
Exploration and evaluation assets
The costs of exploration properties and leases, which include the cost of acquiring prospective properties and exploration rights and costs 
incurred in exploration and evaluation activities, are capitalised as intangible assets as part of exploration and evaluation assets.
Exploration and evaluation assets are carried forward during the exploration and evaluation stage and are assessed for impairment 
in accordance with the indicators of impairment as set out in IFRS 6 ‘Exploration for and Evaluation of Mineral Resources’. 
In circumstances where a property is abandoned, the cumulative capitalised costs relating to the property are written off in the period. 
No amortisation is charged prior to the commencement of production. 
Once commercially viable reserves are established and development is sanctioned, exploration and evaluation assets are tested for 
impairment and transferred to ‘Assets under construction’.
Upon transfer of ‘Exploration and evaluation costs’ into ‘Assets under construction’, all subsequent expenditure on the construction, 
installation or completion of infrastructure facilities is capitalised within ‘Assets under construction’. 
When commercial production commences, exploration, evaluation and development costs previously capitalised are amortised over the 
commercial reserves of the mining property on a units-of-production basis.
‘Exploration and evaluation costs’ incurred after commercial production start date in relation to evaluation of potential mineral reserves and 
resources that is expected to result in increase of reserves are capitalised as ’Evaluation and exploration assets’ within ‘intangible assets’. 
Once there is evidence that reserves are increased, such costs are tested for impairment and transferred to ‘Producing mines’. 
Mining rights
Mining rights are carried at cost to the Group less any provisions for impairments which result from evaluations and assessments of 
potential mineral recoveries and accumulated depletion. Mining rights are depleted on the units-of-production basis over the total reserves 
of the relevant area.
Other intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business 
combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any 
accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised 
development costs, are not capitalised and expenditure is reflected in the consolidated income statement in the year in which the 
expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication 
that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful 
life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future 
economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as 
changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the consolidated income 
statement in the expense category consistent with the function of the intangible asset.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash 
generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be 
supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. 
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the 
carrying amount of the asset and are recognised in the consolidated income statement when the asset is derecognised.
Property, plant and equipment and mine properties 
Development expenditure is net of proceeds from all but the incidental sale of ore extracted during the development phase. 
Upon completion of mine construction, the assets initially charged to Assets in course of construction are transferred into ‘Plant and 
equipment’ or ‘Producing mines’. Items of ‘Plant and equipment’ and ‘Producing mines’ are stated at cost, less accumulated depreciation 
and accumulated impairment losses. 
During the production period expenditures directly attributable to the construction of each individual asset are capitalised as ‘Assets’ in 
course of construction up to the period when asset is ready to be put into operation. When an asset is put into operation it is transferred to 
‘Plant and equipment’ or ‘Producing mines’. Additional capitalised costs performed subsequent to the date of commencement of operation 
of the asset are charged directly to ‘Plant and equipment’ or ‘Producing mines’ i.e. where the asset itself was transferred.
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into 
operation, the initial estimate of the rehabilitation obligation, and for qualifying assets, borrowing costs. The purchase price or construction 
cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. 
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are 
either regarded as inventory or expensed, except for costs which qualify for capitalisation relating to mining asset additions or improvements, 
underground mine development or mineable reserve development.  28 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
3. Significant accounting policies continued
Property, plant and equipment and mine properties continued
Depreciation/amortisation 
Accumulated mine development costs within producing mines are depreciated/amortised on a units-of-production basis over the 
economically recoverable reserves of the mine concerned, except in the case of assets whose useful life is shorter than the life of the mine, 
in which case the straight line method is applied. The unit of account for run of mines (‘ROM’) costs and for post-ROM costs are recoverable 
ounces of gold. The units-of-production rate for the depreciation/amortisation of mine development costs takes into account expenditures 
incurred to date. 
The premium paid in excess of the intrinsic value of land to gain access is amortised over the life of mine. 
Other plant and equipment such as mobile mine equipment is generally depreciated on a straight line basis over their estimated useful lives 
as follows: 
 > Temporary buildings –  eight years 
 > Plant and equipment –  eight years 
 > Motor vehicles – four years 
 > Office equipment –  four years 
 > Leasehold improvements –  eight years 
An item of property, plant and equipment, and any significant part initially recognised, is derecognised upon disposal or when no future economic 
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net 
disposal proceeds and the carrying amount of the asset) is included in the consolidated income statement when the asset is derecognised. 
The asset’s residual values, useful lives and methods of depreciation/amortisation are reviewed at each reporting period and adjusted 
prospectively if appropriate. 
Major maintenance and repairs 
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets and overhaul costs. 
Where an asset or part of an asset that was separately depreciated and is now written off is replaced, and it is probable that future economic 
benefits associated with the item will flow to the Group through an extended life, the expenditure is capitalised. 
Where part of the asset was not separately considered as a component, the replacement value is used to estimate the carrying amount 
of the replaced assets which is immediately written off. All other day-to-day maintenance costs are expensed as incurred.
Impairment of tangible and intangible assets 
The Group conducts annual internal assessments of the carrying values of tangible and intangible assets. The carrying values of capitalised 
exploration and evaluation expenditure, mine properties and property, plant and equipment are assessed for impairment when indicators 
of such impairment exist or at least annually. In such cases an estimate of the asset’s recoverable amount is calculated. The recoverable 
amount is determined as the higher of the fair value less costs to sell for the asset and the asset’s value in use. This is determined for an 
individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. 
If this is the case, the individual assets are grouped together into cash-generating units (‘CGUs’) for impairment purposes. Such CGUs 
represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other 
assets or other groups of assets. This generally results in the Group evaluating its non-financial assets on a geographical or licence basis. 
If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired and an impairment loss is charged to the 
consolidated income statement so as to reduce the carrying amount to its recoverable amount (i.e. the higher of fair value less cost 
to sell and value in use). 
Impairment losses related to continuing operations are recognised in the consolidated income statement in those expense categories 
consistent with the function of the impaired asset. 
For assets excluding the intangibles referred to above, an assessment is made at each reporting date as to whether there is any indication 
that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an 
estimate of the recoverable amount. 
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable 
amount since the last impairment loss was recognised. If this is the case, the carrying amount of the asset is increased to its recoverable 
amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation or amortisation, 
had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of comprehensive income. 
Impairment losses recognised in relation to indefinite life intangibles are not reversed for subsequent increases in its recoverable amount. 
Provisions
General
Provisions are recognised when (a) the Group has a present obligation (legal or constructive) as a result of a past event, and (b) it is probable 
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of 
the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that 
reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage 
of time is recognised as a finance cost.  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 29
3. Significant accounting policies continued
Provisions continued
Rehabilitation provision
The Group records the present value of estimated costs of legal and constructive obligations required to restore operating locations 
in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, 
rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation 
and re-vegetation of affected areas. 
The obligation generally arises when the asset is installed or the ground/environment is disturbed at the production location. When the 
liability is initially recognised, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining 
assets to the extent that it was incurred prior to the production of related ore. Over time, the discounted liability is increased for the change 
in present value based on the discount rates that reflect current market assessments and the risks specific to the liability. 
The periodic unwinding of the discount is recognised in the consolidated income statement as a finance cost. Additional disturbances or changes 
in rehabilitation costs will be recognised as additions or charges to the corresponding assets and rehabilitation liability when they occur . 
For closed sites, changes to estimated costs are recognised immediately in the consolidated income statement. 
Financial assets
Initial recognition and measurement
Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, 
held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, 
as appropriate. The Group determines the classification of its financial assets at initial recognition. All financial assets are recognised initially 
at fair value.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the 
marketplace (regular way trades) are recognised on the trade date, i.e. the date that the Group commits to purchase or sell the asset.
The Group’s financial assets include cash and short-term deposits as well as trade and other receivables.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification:
Trade and other receivables
Trade and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. 
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate method, less 
impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral 
part of the effective interest rate method. The effective interest rate method amortisation is included in finance income in the consolidated 
income statement. The losses arising from impairment are recognised in the consolidated income statement.
Derecognition
A financial asset (or, where applicable, a part of a financial asset) is derecognised when:
 > the rights to receive cash flows from the asset have expired; or
 > the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows 
in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially 
all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the 
asset, but has transferred control of the asset.
Impairment of financial assets
The Group assesses at each consolidated statement of financial position date whether there is any objective evidence that a financial asset 
or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is 
objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (an incurred 
‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that 
can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant 
financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial 
reorganisation and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes 
in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Group first assesses individually whether objective evidence of impairment exists 
individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the 
Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, 
it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. 
Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognised are not included 
in a collective assessment of impairment.
If there is objective evidence that an impairment loss has incurred, the amount of the loss is measured as the difference between the asset’s 
carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been 
incurred). The present value of the estimated future cash flows is discounted at the financial assets original effective interest rate. 30 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
3. Significant accounting policies continued
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, 
or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Group determines the classification of its 
financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, 
plus directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, contractual provisions and 
loans and borrowings.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Trade and other payables and contractual provisions
Trade and other payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest 
rate method.
Loans and borrowings
Interest-bearing loans and overdrafts are recorded at the proceeds received, net of direct transaction costs. Finance charges, including 
premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis and charged to the 
consolidated income statement using the effective interest method. They are added to the carrying amount of the instrument to the extent 
that they are not settled in the period in which they arise.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate 
method. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised as well as through 
the effective interest rate method amortisation process. 
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the 
effective interest rate method. The effective interest rate method amortisation is included in finance cost in the consolidated income statement.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing 
liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition 
of a new liability, and the difference in the respective carrying amounts is recognised in the statement of comprehensive income.
Non-current prepayments
Advances made to suppliers for fixed asset purchases are recognised as non-current prepayments until the time when fixed assets are supplied. 
Inventories 
Metal in circuit consists of in-circuit material at properties with milling or processing operations and doré awaiting refinement, all valued at 
the lower of average cost and net realisable value. In-process inventory costs consist of direct production costs, including mining, crushing 
and processing; site administration costs; and allocated indirect costs, including depreciation, depletion and amortisation of producing mines 
and mining interests. 
Ore stockpiles consist of stockpiled ore, ore on surface and crushed ore, all valued at the lower of average cost and net realisable value. 
Ore stockpile costs consist of direct costs including mining, crushing, site administration costs; and allocated indirect costs, including 
depreciation, depletion and amortisation of producing mines and mining interests.
Inventory costs are charged to operations on the basis of ounces of gold sold. The Group regularly evaluates and refines estimates used 
in determining the costs charged to operations and costs absorbed into inventory carrying values based upon actual gold recoveries and 
operating plans. 
Finished goods consists of doré bars and metal in concentrate that have been refined and assayed and are in a form that allows them to be 
sold on international bullion markets. Finished goods are valued at the lower of average cost and net realisable value. Finished goods costs 
consist of direct production costs, including mining, crushing and processing; site administration costs; and allocated indirect costs, 
including depreciation, depletion and amortisation of producing mines and mining interests. 
Spare parts and consumables consists of consumables used in operations, such as fuel, chemicals, reagents and spare parts, valued at the 
lower of average cost and replacement cost and, where appropriate, less a provision for obsolescence. 
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs, or value of services received net 
of any issue costs.   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 31
3. Significant accounting policies continued
Deferred stripping costs 
Stripping costs incurred in the development of a mine before production commences are capitalised as part of the cost of constructing the 
mine and subsequently amortised over the life of the mine on a units-of-production basis. 
Stripping costs incurred subsequently during the production stage of its operation are deferred for those operations where this is the most 
appropriate basis for matching the cost against the related economic benefits and the effect is material. This is generally the case where 
there are fluctuations in stripping costs over the life of the mine. The amount of stripping costs deferred is based on the strip ratio obtained 
by dividing the tonnage of waste mined either by the quantity of ore mined or by the quantity of minerals contained in the ore. Stripping costs 
incurred in the period are deferred to the extent that the current period ratio exceeds the life of the mine strip ratio. Such deferred costs are 
then charged to the consolidated income statement to the extent that, in subsequent periods, the current period ratio falls short of the life of 
mine (or pit) ratio. The life of mine (or pit) ratio is based on economically recoverable reserves of the mine (or pit). Changes are accounted for 
prospectively, from the date of the change. 
Deferred stripping costs are included as part of ‘Producing mines’. These form part of the total investment in the relevant cash-generating 
units, which are reviewed for impairment if events or changes of circumstances indicate that the carrying value may not be recoverable. 
Employee leave benefits
Liabilities for wages and salaries, including non-monetary benefits and accrued but unused annual leave are recognised in respect of 
employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. 
Retirement benefit costs
The Group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their personal pension 
policies. The contributions due for the period are charged to the consolidated income statement.
Share-based payments
The Group has applied the requirements of IFRS 2 ‘Share-based Payment’. IFRS 2 has been applied to all grants of equity instruments.
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair 
value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the 
equity-settled share-based payments is expensed on a straight line basis over the vesting period, based on the Group’s estimate of shares 
that will eventually vest and adjusted for the effect of non-market-based vesting conditions.
Fair value is measured by use of the Black-Scholes model. The expected life used in the model has been applied based on management’s 
best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The vesting conditions assumptions 
are reviewed during each reporting period to ensure they reflect current expectations. 
Reclassifications
Certain reclassifications have been made to the amounts disclosed in prior year consolidated financial statements. There was no impact 
on the Group’s financial position, results of operations and equity as a result of these reclassifications.
4. Segment information
The operations of the Group are all located within the Republic of Azerbaijan. The Group has one producing asset: its gold and copper mine 
in Gedabek. All sales of gold and silver bullions are made to one customer, the Group’s gold refinery, MKS Finance SA, based in Switzerland. 
Copper concentrate is sold to two customers – Seagate Minerals and Metals Inc and Glencore International AG. Management of the Group 
does not segment the business when evaluating its performance.
5. Revenue
The Group’s revenue consists of bullion and copper concentrate sold to third-party customers. Revenue from sales of gold and silver bullion 
was US$77,561,807 and US$1,194,842 respectively (2010: US$71,236,994 and US$775,549). Revenue from sales of copper concentrate was 
US$4,996,662 (2010: US$ nil). 
Finance income of US$51,000 in 2011 represents cash deposit interest received during the year (2010: US$ nil).
6. Other operating expenses and income
Other operating expenses consist of metal processing costs, profit/loss on disposal of property, plant and equipment, depreciation 
of rehabilitation cost, foreign currency exchange net loss and miscellaneous operating expenses.
Other operating income relates to the income generated as a result of unwinding of a provision during 2011 and 2010. 32 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
7. Operating profit
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
      Notes US$ US$
Operating profit is stated after charging:   
Depreciation on property, plant and equipment – owned    14 12,524,389 13,112,368 
Amortisation of mining rights and other intangible assets   13 6,587,910 7,752,668
Employee benefits and expenses     9 7,577,918 6,503,761 
Net foreign currency exchange loss     201,522 421,506
Inventory expensed during the year     13,031,962 10,976,653
Operating lease expenses      311,098 256,447
The analysis of auditor’s remuneration is as follows:   
Fees payable to the Group’s auditors for the audit of the Group’s annual accounts   119,500 102,331
The audit of the Group’s subsidiaries pursuant to legislation     118,800 108,000
Total audit fees      238,300 210,331
Tax services      28,482 —
Total non-audit services      28,482 —
The audit fees for the parent company were US$40,300 (2010: US$24,000).
8. Remuneration of Directors 
     Consultancy Fees Benefits Total 
Year ended 31 December 2011    US$ US$ US$ US$
Richard Round     —  52,159 —  52,159
John Sununu    —  76,232 —  76,232
Khosrow Zamani    —  128,390 —  128,390
Reza Vaziri    308,137 52,159 42,000 402,296
John Monhemius    17,158 52,159 —  69,317
Total    325,295 361,099 42,000 728,394
Directors’ fees and consultancy fees for 2011 included above were paid in cash.
     Consultancy Fees Benefits Total 
Year ended 31 December 2010    US$ US$ US$ US$
Richard Round     — 40,547 — 40,547
John Sununu    — 56,766 — 56,766
Khosrow Zamani    — 100,402 — 100,402
Reza Vaziri    268,767 36,428 21,000 326,195
John Monhemius    21,764 36,685 — 58,449
Total    290,531 270,828 21,000 582,359
Directors’ fees and consultancy fees for 2010 included above were paid in cash.
9. Staff numbers and costs
The average number employed by the Group (including Directors) during the year, analysed by category, was as follows: 
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       Number Number
Management and administration      50 49
Processing and exploration      65 87
Mine operations      393 291
Total      508 427
The aggregate payroll costs of these persons were as follows:
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Wages and salaries      7,617,726 7,244,118
Share-based payments      28,194 16,575
Social security costs      1,763,767 1,426,543
       9,409,687 8,687,236
Less: salary costs capitalised as exploration, evaluation development, fixed asset and inventory expenditure  (1,831,769) (2,183,475)
Total employee costs      7,577,918 6,503,761  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 33
9. Staff numbers and costs continued
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate:
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Short-term employee benefits      728,394 582,359 
Share-based payment      5,953 16,575
       734,347 598,934 
10. Finance costs
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Interest charged on interest-bearing loans and borrowings    3,006,243 6,021,266 
Finance charges on letters of credit and accretion expenses     264,666 375,099
Interest capitalised during the period     — (81,843)
Total finance cost      3,270,909 6,314,522 
Interest on interest-bearing loans and borrowings represents charges incurred on credit facilities with the International Bank of Azerbaijan 
(‘IBA’) and a loan from Mr. Reza Vaziri, a Director and CEO of the Group. 
Effective 1 October 2011 the interest rate on credit facilities obtained from IBA was revised from 15% per annum to 12% per annum.
Interest on the loan from Mr. Reza Vaziri was 8% per annum (2010: 8%). The loan from Mr. Reza Vaziri has been fully repaid during 2011.
The credit facilities were provided for the purpose of constructing and developing the Gedabek gold mine, additions in working capital and 
paying for interest on loans. 
Where a portion of the loans has been used to finance the construction and purchase of assets of the Group, the interest on that portion 
of the loans has been capitalised up until the time the assets were substantially ready for use (note 14).
11. Taxation
Corporation tax is calculated at 32% (as stipulated in the PSA for RVIG in the Republic of Azerbaijan, the entity that contributes most significant 
portion of profit before tax in the Group consolidated financial statements) of the estimated assessable profit for the year . Taxation for other 
jurisdictions is calculated at the rates prevailing in the respective jurisdictions. Deferred income taxes arising in RVIG are recognised and fully 
disclosed in these consolidated financial statements. The Group has fully utilised tax losses available in RVIG during 2011. 
The major components of the income tax expenses for the year ended 31 December are: 
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Current income tax:  
Current income tax charge      4,950,289 —
Deferred tax:  
Relating to origination and reversal of temporary differences    7,900,635 4,560,934
Income tax expense reported in the consolidated income statement    12,850,924 4,560,934 34 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
11. Taxation continued
Deferred income tax at December 31 relates to the following: 
    Consolidated Statement 
    of Financial Position  Consolidated Income Statement
     As at As at  Year ended Year ended 
     31 December  31 December 31 December  31 December 
     2011 2010 2011 2010 
     US$ US$ US$ US$
Deferred income tax liability:
Property, plant and equipment    (6,546,680)  (5,834,562) (712,118)  (5,834,562)
Non-current prepayments    (93,533) (91,028) (2,505) (91,028)
Trade and other receivables    (493,324) (402,692) (90,632) (402,692)
Inventories    (7,553,692) (4,504,103) (3,049,589) (4,504,103)
Deferred tax liability    (14,687,229)  (10,832,385)  
Deferred income tax asset:  
Trade and other payables and provisions   2,225,660  1,985,077 240,583  1,985,077
Carry forward losses    — 4,286,374 (4,286,374) 4,286,374
     2,225,660 6,271,451  
Deferred income tax expense      (7,900,635) (4,560,934)
Net deferred tax liability    (12,461,569)  (4,560,934)  
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Profit before tax      31,623,383 19,798,377
Theoretical tax charge at statutory rate of 32%     10,119,483  6,335,482
Effects of different tax rates for certain Group entities (28%)    65,062  28,859
Tax effect of items which are not deductible or assessable for taxation purposes:  
– losses in jurisdictions that are exempt from taxation     3,271 4,482
– non-deductible expenses      2,365,088 2,381,812
Unrecognised deferred tax assets     298,020  1,360,508
Benefit from unrecognised deferred tax assets of previous years    — (5,550,209)
Income tax expense for the year     12,850,924 4,560,934
Deferred taxation
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 
Deferred tax assets and liabilities have been offset for deferred taxes recognised for RVIG since there is a legally enforceable right to set off 
current tax assets against current tax liabilities and they relate to income taxes levied by the same taxation authority and the Group intends 
to settle its current tax assets and liabilities on a net basis in the Republic of Azerbaijan.
At the balance sheet date, the Group has unused tax losses of US$6,813,064 (2010: US$20,053,271) available for offset against future profits. 
Unused tax losses in the Republic of Azerbaijan brought forward from prior years were fully utilised during 2011. No deferred tax assets have 
been recognised in respect of jurisdictions other than the Republic of Azerbaijan due to the uncertainty of future profit streams. 
12. Earnings per share
The basic earnings per share of 16.91 cents (2010: 13.88 cents) has been based on a weighted average number of shares in issue of 
110,993,882 (2010: 109,765,126) and a net income of US$18,772,459 (2010: US$15,237,443).
Dilutive earnings per share is 16.47 cents for 2011 (2010: 13.37 cents). Dilutive earnings per share has been based on 113,970,224, the 
weighted average number of shares determined based on the dilutive effects of 2,826,684 share options exercisable as of 31 December 2011 
and 275,000 share options not vested by 31 December 2011.
13. Intangible assets
Exploration and evaluation assets
     Gedabek Gosha Ordubad Total 
     US$ US$ US$ US$
Cost    
As at 1 January 2010    746,957 771,039 1,298,097 2,816,093
Additions    1,285,318 1,753,680 410,472 3,449,470
As at 31 December 2010    2,032,275  2,524,719 1,708,569 6,265,563 
Additions    2,914,644 1,576,621 465,071 4,956,336
Transfer to property, plant and equipment   — (4,101,340) — (4,101,340)
As at 31 December 2011    4,946,919 — 2,173,640 7,120,559  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 35
13. Intangible assets continued
Mining rights and other intangible assets
       Other  
      Mining intangible  
      rights  assets Total 
      US$ US$ US$
Cost   
As at 1 January 2010      41,925,262 314,245 42,239,507
Additions     — 27,544 27,544
As at 31 December 2010      41,925,262 341,789 42,267,051
Additions     — 101,412 101,412
As at 31 December 2011     41,925,262 443,201 42,368,463
Amortisation and impairment   
As at 1 January 2010      (6,293,360) (17,145) (6,310,505)
Charge for the year     (7,682,138) (70,530) (7,752,668)
As at 31 December 2010      (13,975,498) (87,675) (14,063,173)
Charge for the year     (6,517,353) (70,557) (6,587,910)
As at 31 December 2011     (20,492,851) (158,232) (20,651,083)
Net book value   
As at 31 December 2010      27,949,764 254,114 28,203,878
As at 31 December 2011     21,432,411 284,969 21,717,380
14. Property, plant and equipment
    Temporary Plant and Producing Motor Office Leasehold Assets under 
    buildings equipment mines vehicles equipment improvements construction Total 
    US$ US$ US$ US$ US$ US$ US$ US$
Cost        
As at 1 January 2010    302,757 6,023,811 39,414,228 432,938 1,242,469 438,357 5,242,676 53,097,236
Capitalisation of interest   — — — — — — 81,843  81,843
Additions   — 818,692 2,685,583 122,207 608,563 11,738 4,019,310 8,266,093
Transfer to producing mines   — — 6,398,124 — — — (6,398,124)  —
Decrease in provision for rehabilitation  — — (243,557) — — — — (243,557)
As at 31 December 2010    302,757 6,842,503 48,254,378 555,145 1,851,032 450,095 2,945,705 61,201,615
Additions   13,600 427,426 — 201,801 729,893 5,010 6,336,454 7,714,184
Transfer to producing mines   — — 4,921,316 — — — (4,921,316) —
Transfer from evaluation and 
exploration assets   — — — — — — 4,101,340 4,101,340
Increase in provision for rehabilitation  — — 967,865 — — — — 967,865
As at 31 December 2011   316,357 7,269,929 54,143,559 756,946 2,580,925 455,105 8,462,183 73,985,004
Depreciation and impairment*        
As at 1 January 2010    (152,602) (1,119,602) (2,566,134) (200,833) (508,271) (251,135) — (4,798,577)
Charge for the year   (37,845) (915,420) (11,692,141) (116,270) (295,078) (55,614) — (13,112,368)
As at 31 December 2010    (190,447) (2,035,022) (14,258,275) (317,103) (803,349) (306,749) — (17,910,945)
Charge for the year   (38,745) (981,598) (10,962,382) (135,999) (349,181) (56,484) — (12,524,389)
As at 31 December 2011   (229,192) (3,016,620) (25,220,657) (453,102) (1,152,530) (363,233) — (30,435,334)
Net book value        
As at 31 December 2010    112,310 4,807,481  33,996,103 238,042 1,047,683 143,346 2,945,705 43,290,670
As at 31 December 2011   87,165 4,253,309 28,922,902 303,844 1,428,395 91,872 8,462,183 43,549,670
*  An amount of 323,000oz of recoverable gold has been used to determine depreciation on accumulated mine development costs. The Group will use a new recoverable 
gold amount for the purposes of depreciation prospectively starting from 2012 based on a new JORC-compliant reserve report that is expected to become available to 
the Group in the first half of 2012.
The capital commitments by the Group have been disclosed in note 27. 
15. Non-current prepayments
Non-current prepayments represent advances made to suppliers for fixed asset purchases. 
16. Subsidiary undertakings
A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given 
in note 5 in the Company’s financial statements. 36 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
17. Trade receivables and other assets
       As at As at 
       31 December 31 December 
       2011 2010 
       US$ US$
Gold held on behalf of the Government     1,168,185 1,533,403
VAT refund due      978,442 1,457,609
Trade receivables      93,330 240,664
Prepayments      257,677 235,445
Advances      1,273,362 845,858
Other receivables      — 9,115
       3,770,996 4,322,094
The carrying amount of trade and other receivables approximates to their fair value.
The VAT refund due at 31 December 2011 and 2010 relates to VAT paid on purchases. 
The gold bullion receivable on behalf of the Government relates to bullion held in the account of the Group for which the Government 
is the beneficial holder. The Group holds the Government’s share of the product from its mining activities and from time to time transfers 
that product to the Government. A corresponding liability to the Government is included in trade and other payables shown in note 20.
During 2011 the Group has written off the tax receivable (‘VAT refund due’) in the amount of US$620,075 (2010: US$ nil) due to uncertainties 
in its recoverability. 
The Group does not consider any stated trade and other receivables as past due or impaired.
18. Inventories
       As at As at 
       31 December 31 December 
       2011 2010 
       US$ US$
At cost  
Finished goods – bullion      1,151,566 833,314 
Finished goods – metal in concentrate     3,258,156 1,370,286
Metal in circuit      18,434,070 11,114,620 
Ore stockpiles      —  409,995 
Spare parts and consumables      4,457,391  2,626,753 
       27,301,183 16,354,968 
In early 2010 the Group commenced production of metal in concentrate with the first sale made in 2011. 
During 2011 the Group wrote down the accumulated balance of unrecoverable low grade ore stockpiles at the amount of US$1,141,758.
19. Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group within financial institutions and are available immediately. The carrying amount 
of these assets approximates their fair value.
Cash and cash equivalents include a short-term deposit of US$8,000,000 held for a maturity of three months with Yapi Kredi Bank Azerbaijan 
at 5% per annum. The Group’s cash and cash equivalents are mostly held in US Dollars.
20. Trade and other payables 
       As at As at 
       31 December 31 December 
       2011 2010 
       US$ US$
Accruals and other payables      5,104,558 5,095,662 
Trade creditors       1,904,655 2,634,393 
Gold held on behalf of the Government     1,168,185 1,533,403 
Payable to the Government from copper concentrate joint sale    519,872 —
Current income tax payable      110,490 —
       8,807,760 9,263,458 
Trade creditors and other payables and accruals primarily comprise amounts outstanding for trade purchases and ongoing costs. Trade 
creditors are non-interest bearing and the creditor days were 24 (2010: 27). Accruals and other payables mainly consist of accruals made for 
accrued but not paid salaries, bonuses, related payroll taxes and social contributions, as well as services provided but not billed to the Group 
by the end of reported period. The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
Amount owed to the Government from copper concentrate joint sale represents the portion of cash received from the customer for the 
Government’s portion from the joint sale of copper concentrate. This balance was fully settled subsequent to year end 2011.
Letters of credit totalling US$969,600 (2010: US$1,885,794 with IBA) were negotiated with several European banks and guaranteed by Bank 
Standard JSC at 31 December 2011 to finance working capital additions and are currently held within trade creditors.  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 37
21. Interest-bearing loans and borrowings
       As at As at 
       31 December 31 December 
       2011 2010 
       US$ US$
Loans from IBA      13,128,412 29,627,007 
Loan from Mr. Reza Vaziri      — 998,663
Total interest-bearing loans and borrowings     13,128,412 30,625,670
Loans repayable in less than one year     11,307,412 10,641,996
Loans repayable in more than one year      1,821,000 19,983,674
During 2011 the Group has repaid a portion of loan totalling US$16,588,000 to IBA, US$6,868,588 of which represents the early repayment 
of amounts due in 2012. Originally scheduled repayments due in 2012 were US$18,176,000, of which US$11,307,412 remains outstanding at 
31 December 2011 after allowing for the US$6,868,588 early repayment during the year. As mentioned in note 10, the interest rate on credit 
facilities obtained from IBA was reduced from 15% per annum to 12% per annum effective from 1 October 2011. 
The Group repaid all of its outstanding loan from Mr. Reza Vaziri totalling US$998,663 during 2011. 
As at 31 December 2011 the Group had undrawn facilities of US$227,000 (2010: US$227,000) after consideration of the letters of credit which 
are guaranteed by the IBA.
22. Provision for rehabilitation
       2011 2010 
       US$ US$
Carrying amount as at 1 January      1,363,970 1,530,978 
Additions      1,327,033 87,145
Accretion expense      93,160 76,549
Effect of change in discount rate      (359,168) (330,702)
Carrying amount as at 31 December      2,424,995 1,363,970
The Group is exposed to restoration, rehabilitation and environmental liabilities relating to its mining operations. Estimates of the cost of this 
work including reclamation costs, close down and pollution control are made on an ongoing basis, based on the estimated life of the mine. 
This represents the net present value of the best estimate of the expenditure required to settle the obligation to rehabilitate environmental 
disturbances caused by mining operations (US$4,043,836 undiscounted liability for 2011 and US$2,110,669 undiscounted liability for 2010, 
discounted using a risk-free rate of 6.83% for 2011 and 5.00% for 2010).
Expenditure on restoration and rehabilitation is expected to commence in 2018. 
23. Financial instruments
Financial risk management objectives and policies
The Group’s principal financial instruments comprise cash and cash equivalents, loans and letters of credit. The main purpose of these 
financial instruments is to finance the Group operations. The Group has other financial instruments, such as trade and other receivables 
and trade and other payables, which arise directly from its operations. Surplus cash within the Group is put on deposit, the objective being 
to maximise returns on such funds whilst ensuring that the short-term cash flow requirements of the Group are met.
The main risks that could adversely affect the Group’s financial assets, liabilities or future cash flows are commodity price risk, cash flow 
interest rate risk, foreign currency risk, liquidity risk and credit risk. Management reviews and agrees policies for managing each of these 
risks which are summarised below.
The following discussion also includes a sensitivity analysis that is intended to illustrate the sensitivity to changes in market variables on the 
Group’s financial instruments and show the impact on profit or loss and shareholders’ equity, where applicable. Financial instruments 
affected by market risk include bank loans and overdrafts, accounts receivable, accounts payable and accrued liabilities.
The sensitivity has been prepared for the years ended 31 December 2011 and 2010 using the amounts of debt and other financial assets and 
liabilities held as at those reporting dates.
Capital risk management
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 21, cash and cash equivalents and equity 
attributable to equity holders of the parent, comprising issued share capital, reserves and retained earnings as disclosed in the consolidated 
statement of changes in equity. The Group has sufficient capital to fund ongoing production and exploration activities, with capital 
requirements reviewed by the Board on a regular basis. Capital has been sourced through share issues on AIM, part of the London Stock 
Exchange, and loans from the IBA, other Azerbaijani banks and its CEO, Mr. Reza Vaziri. In managing its capital, the Group’s primary 
objective once production has commenced is to ensure its continued ability to provide a consistent return for its equity shareholders through 
capital growth. In order to achieve this objective the Group seeks to maintain a gearing ratio that balances risk and returns at an acceptable 
level and also to maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. 
The Group is not subject to externally imposed capital requirements. The Group monitors capital using a gearing ratio, which is net debt 
divided by total capital plus net debt. The Group’s policy is to keep the gearing ratio below 70%. The Group includes within net debt 
interest-bearing loans and borrowings, trade and other payables, less cash and cash equivalents. 38 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
23. Financial instruments continued
Capital risk management continued
       As at As at 
       31 December 31 December 
       2011 2010 
       US$ US$
Interest-bearing loans and borrowings (note 21)     13,128,412 30,625,670
Less cash and cash equivalents (note 19)     (9,938,594) (5,110,851)
Net debt      3,189,818 25,514,819
Equity      76,867,936 58,018,453
Capital and net debt      80,057,754 83,533,272
Gearing ratio      4% 31%
Interest rate risk management
The Group’s cash and cash equivalents are not subject to interest. All letters of credit, borrowings and interest-bearing loans of the Group 
are at a fixed rate of interest. The Group manages the risk by maintaining an appropriate mix between fixed and floating rate borrowings, 
with approval from the Directors required for all new borrowing facilities.
The Group has not used any interest rate swaps or other instruments to manage its interest rate profile during 2011.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for financial instruments at the consolidated 
statement of financial position date. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key 
management personnel and represents management’s assessment of the reasonably possible change in interest rates.
The increase/decrease in the discount rate by 50 points results in an increase in the rehabilitation provision by US$88,361 and a decrease 
of US$92,368, respectively.
All borrowings have been made at fixed interest rates through the entirety of the repayment period.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity risk management 
framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group 
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring 
forecast and actual cash flows and matching the maturity profiles of financial liabilities. Included in note 21 is a description of additional 
undrawn facilities that the Group has at its disposal to further reduce liquidity risk. 
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments.
Year ended 31 December 2011
   On Less than 3 to 12 1 to 5   
   demand 3 months months years > 5 years Total 
   US$ US$ US$ US$ US$ US$
Interest-bearing loans and borrowings — — 11,220,000 1,821,000 — 13,041,000
Trade and other payables   1,777,515 4,857,387  484,800 — — 7,119,702 
Provision for rehabilitation  — — — — 4,043,836  4,043,836 
   1,777,515 4,857,387 11,704,800 1,821,000 4,043,836 24,204,538
Year ended 31 December 2010
   On Less than 3 to 12 1 to 5   
   demand 3 months months years > 5 years Total 
   US$ US$ US$ US$ US$ US$
Interest-bearing loans and borrowings 998,663 — 9,630,007 19,997,000 — 30,625,670
Trade and other payables   4,287,864 4,483,594 492,000 — — 9,263,458
Provision for rehabilitation  — — — — 2,110,669 2,110,669
   5,286,527 4,483,594 10,122,007 19,997,000 2,110,669 41,999,797
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. 
The maximum credit risk exposure relating to financial assets is represented by their carrying value as at the consolidated statement 
of financial position date. 
The Group has adopted a policy of only dealing with creditworthy banks. Trade receivables consist of amounts due to the Group from sales 
of gold and silver. All sales of gold-silver bullions are made to MKS Finance SA, a Switzerland-based gold refinery and copper concentrates 
to Seagate Minerals and Metals and Glencore International AG. Due to the nature of the customers, the Board does not feel that a significant 
credit risk exists for receipt of revenues. The Board continually reviews the possibilities of selling gold to alternative customers and also the 
requirement for additional measures to mitigate any potential credit risk.   www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 39
23. Financial instruments continued
Foreign currency risk management
The presentational currency of the Group is US Dollars. The Group is exposed to currency risk due to movements in foreign currencies 
relative to the US Dollar affecting foreign currency transactions and balances.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
    Liabilities  Assets
     2011 2010 2011 2010 
     US$ US$ US$ US$
UK Sterling    54,496 102,726 31,525 9,647
Azerbaijan Manats    4,812,429 4,978,768 1,310,806 1,597,412
Other    154,226 41,278 8,126 39,473
Foreign currency sensitivity analysis
The Group is mainly exposed to the currency of the United Kingdom (UK Sterling) and the currency of the Republic of Azerbaijan 
(Azerbaijan Manats).
The following table details the Group’s sensitivity to a 12.50% and 5.09% (2010: 20.00%) increase and decrease in the US Dollar against 
UK sterling and Azerbaijan Manat, respectively. These are the sensitivity rates used when reporting foreign currency risk internally to key 
management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The 
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end 
for respective change in foreign currency rates. A positive number below indicates an increase in profit and other equity where the US Dollar 
strengthens by mentioned rates against the relevant currency. Weakening of the US Dollar against the relevant currency, would have an 
equal and opposite impact on the profit and other equity, and the balances below would be reversed.
    UK Sterling impact  Azerbaijan Manat impact
     2011 2010 2011 2010 
     US$ US$ US$ US$
Effect on profit before tax    2,871  15,513 178,233 563,559
Market risk
The Group’s activities primarily expose it to the financial risks of changes in gold, silver and copper prices which have a direct impact on 
revenues. The Board monitors both the spot and forward price of these regularly and now that production is becoming more reliable will 
review the possibility of using forward contracts and derivative financial instruments to manage this risk. 
A 10% decrease in gold price would result in a reduction in revenue of US$7,837,462 and a 10% increase in gold prices would result in an 
increase in revenue of US$7,837,462. A 10% decrease in silver price would result in a reduction in revenue of US$366,452 and a 10% increase 
in silver prices would result in an increase in revenue of US$366,452. A 10% decrease in copper price would result in a reduction in revenue 
of US$171,417 and a 10% increase in copper prices would result in an increase in revenue of US$171,417.
24. Equity
       As at As at 
       31 December 31 December 
       2011 2010 
       UK Sterling UK Sterling
Authorised:  
600,000,000 ordinary shares of 1 pence each     6,000,000 6,000,000
       US$ US$
Issued and fully paid:  
111,047,307 ordinary shares of 1 pence each (2010: 110,397,307 ordinary shares of 1 pence each)  1,967,704 1,957,424
Fully paid ordinary shares carry one vote per share and carry the right to dividends. 
       Shares US$
Ordinary shares issued and fully paid:  
At 1 January 2010      108,945,949 1,934,363
Issued to Directors and employees in lieu of salary, fees and expenses   684,691 10,868
Issued to a trade creditor in lieu of cash payment     66,667 1,004
Exercise of stock options      700,000 11,189
At 31 December 2010      110,397,307 1,957,424
Exercise of stock options      650,000 10,280
At 31 December 2011      111,047,307 1,967,704 40 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
24. Equity continued
Share options
The Group has share option scheme under which options to subscribe for the Company’s shares have been granted to certain executives and 
senior employees (note 26). 
Merger reserve
The merger reserve was created in accordance with the merger relief provisions under Section 612 of the Companies Act 2006 (as amended) 
relating to accounting for Group reconstructions involving the issue of shares at a premium. In preparing Group consolidated financial 
statements, the amount by which the base value of the consideration for the shares allotted exceeded the aggregate nominal value of those 
shares was recorded within a merger reserve on consolidation, rather than in the share premium account.
Accumulated loss
Accumulated loss represents the cumulative loss of the Group attributable to the equity shareholders. 
25. Notes to the cash flow statement
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Profit before tax      31,623,383 19,798,377
Adjustments for:  
Finance costs (note 10)      3,270,909 6,314,522
Depreciation of property, plant and equipment (note 14)    12,524,389 13,112,368 
Amortisation of mining rights and other intangible assets (note 13)    6,587,910 7,752,668
Share-based payment expense (note 26)     28,194 16,575
Write down of taxes receivable (note 17)     620,075 —
Write down of unrecoverable inventory (note 18)     1,141,758 —
Operating cash flows before movements in working capital    55,796,618 46,994,510
Decrease in trade and other receivables     (68,977) (485,410)
Increase in inventories      (12,087,973) (6,023,338)
Decrease in trade and other payables     (730,126) (6,118,509)
Cash provided by operations      42,909,542 34,367,253 
Income taxes paid      (4,834,145) —
Net cash provided by operating activities     38,075,397 34,367,253 
26. Share-based payments
Equity-settled share options
The Group operates a share option scheme for Directors and senior employees of the Group. Options are granted at a price agreed at 
the time of the grant. The vesting periods are up to three years. Options are exercisable at a price equal to the closing quoted market price 
of the Group’s shares on the date of the Board approval to grant options. Options are forfeited if the employee leaves the Group and the 
options are not exercised within three months from leaving date. Details of the share options outstanding during the year are as follows:
    2011  2010
      Weighted  Weighted 
     Number of average Number of average 
     share exercise price share exercise price 
     options Pence options Pence
Outstanding at the beginning of the year   3,526,684 29 4,226,684 23
Granted during the year    225,000 35 — —
Lapsed during the year    — — — —
Forfeited during the year    — — — —
Exercised during the year    (650,000) 5 (700,000) 5
Outstanding at 31 December    3,101,684 34 3,526,684 29
Exercisable at 31 December    2,826,684 34 3,426,684 29
The options outstanding at 31 December 2011 had a weighted average exercise price of 34 pence (ranging from 4.75 pence to 97 pence) and a 
weighted average remaining contractual life of five years. 225,000 options  (2010: nil) were granted in 2011. The aggregate of the estimated 
fair values of the options granted on those dates is £40,306 (US$63,685).  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 41
26. Share-based payments continued
Equity-settled share options continued
The inputs into the Black-Scholes model are as follows:
Granted on 19 October 2011 
Weighted average share price       £0.35
Weighted average exercise price       £0.35
Expected volatility       95%
Expected life       2 years
Risk-free rate       1.34%
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years. The 
expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise 
restrictions and behavioural considerations.
The weighted average fair value of options granted on 19 October 2011 is £0.18.
Total share-based payment expense recognised by the Group
The Group recognised total expenses of US$28,194 and US$16,575 related to equity-settled share-based payment transactions in 2011 
and 2010, respectively.
Shared-based payment charges for options executed during 2011 of the amount of US$17,782 (2010: US$ nil) were reclassified from 
share-based payment reserve to accumulated loss.
The cumulative amount recognised in equity relating to share-based payments at the consolidated statement of financial position date 
was US$648,789 (2010: US$638,377).
27. Contingencies and commitments
The Group undertakes its mining operations in the Republic of Azerbaijan pursuant to the provisions of the Agreement on the Exploration, 
Development and Production Sharing for the Prospective Gold Mining Areas: Gedabek, Gosha, Ordubad Group (Piazbashi, Agyurt, 
Shakardara, Kiliyaki), Soutely, Kyzilbulag and Vejnali Deposits dated 20 August 1997 (the ‘PSA’). The PSA contains various provisions relating 
to the obligations of the R.V. Investment Group Services LLC (‘RVIG’), a wholly owned subsidiary of the Company, with regards to the 
exploration and development programme, preparation and timely submission of reports to the Government, compliance with environmental 
and ecological requirements, etc. The Directors believe that RVIG is in compliance with the requirements of the PSA. The Group has 
announced a discovery on Gosha Mining Property in February 2011 and submitted development programme to the Government according to 
the PSA requirements. 
The Group also announced a discovery on Ordubad Group of Mining Properties subsequent to the consolidated statement of financial position 
date (see note 29) and has six months from April 2012 to present the Government with the development programme. The mining licence on 
Gedabek expires in March 2022, with options to extend the licence by ten years conditional upon satisfaction by RVIG of certain requirements 
stipulated in the PSA.
RVIG is also required to comply with the clauses contained in the PSA relating to environmental damage. The Directors believe RVIG is 
substantially in compliance with the environmental clauses contained in the PSA.
There were no operating lease commitments at 31 December 2011.
There were no capital commitments at 31 December 2011.
28. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not 
disclosed in this note. Transactions between the Group and other related parties are disclosed below. 
Trading transactions
During the years 2011 and 2010, there were no trading transactions between Group companies and related parties who are not members 
of the Group.
Other related party transactions
a)  Mr. Reza Vaziri retains an indirect interest in the lease of the office in Baku, the Republic of Azerbaijan. The cost of the lease in the year 
was US$93,135 (2010: US$91,613).
b)  Shares issued to Directors are disclosed in the Directors’ Report.
c) Remunerations paid to Directors are disclosed in note 8.
d) An interest-bearing loan of US$998,663 from Mr. Reza Vaziri was repaid during the year.
e) During the year US$68,455 (2010: US$103,696) of interest was paid on the loan of US$998,663 from Mr. Reza Vaziri.
f) An office in Baku in which Mr . Reza Vaziri has an indirect interest is pledged under the contract for the credit line with Bank Standard JSC.
g)   Equipment and spare parts of the amount of US$317,000 were bought from Proses Muhendislik Danismanlik Inshaat ve Tasarim Anonim 
Shirket of which the Chief Technical Officer of Azerbaijan International Mining Company, representative office in Azerbaijan Republic (‘AIMC’) 
has a direct ownership interest. 42 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the consolidated financial statements continued
for the year ended 31 December 2011
29. Subsequent events 
The following subsequent events relate to the period from 31 December 2011 to the date of approval of the consolidated financial statements 
on 22 May 2012.
On 20 January 2012 the Group entered into non-cash credit line agreement in amount of US$3,000,000 for letter of credits with Yapi Kredi 
Bank Azerbaijan. A pledge agreement was signed with Yapi Kredi Bank Azerbaijan for guarantee of letters of credit opened under the above 
mentioned agreement. According to this pledge agreement, movable equipment for the amount of US$5,392,800 was pledged to guarantee 
letters of credit opened under the agreement. 
On 11 April 2012 a loan agreement was signed with Yapi Kredi Bank Azerbaijan for US$3,000,000 with a one month maturity period at an 
interest rate of 10% per annum. The loan was fully repaid in May 2012.
On 23 April 2012 the Group submitted a Notice of Discovery for gold on its Ordubad Group of Mining Properties. According to the terms of the 
PSA, following the submission of the Notice of Discovery, the Group has six months to submit a Development and Production Programme 
to the Government for approval. 
On 25 April 2012 the Government approved the Development and Production Programme submitted for Gosha Mining Property. 
An office in Baku in which Mr. Reza Vaziri has an indirect interest, which was pledged under the contract for a credit line with Bank Standard 
JSC, was released from the pledge in May 2012 due to the termination of the contract for the credit line and fulfilment of all obligations 
under this agreement.
On 3 April 2012 the Group announced a JORC-compliant Resource at Gedabek Mine. 
On 10 May 2012 the Group announced that the Board had approved the construction of an agitation leaching plant with an expected cost 
of US$52 million. The Group is in the process of seeking approval from the Government.
On 18 May 2012, the Group announced that the IBA had provided funding of US$7.5 million as part of the funding required for the construction 
of the agitation leaching project. Interest will be charged on the loan at a rate of 12% per annum paid quarterly in arrears. The repayment 
of the loan will be in 12 equal quarterly instalments, with the first instalment payable two years from the date of draw down of funds.  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 43
Independent auditor’s report
to the members of Anglo Asian Mining PLC
We have audited the parent company financial statements of for the year ended 31 December 2011 which comprise the Company Balance 
Sheet and the related notes 1 to 14. The financial reporting framework that has been applied in their preparation is applicable law and United 
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our 
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other 
than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 15, the Directors are responsible for the preparation of 
the parent company financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express 
an opinion on the parent company financial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: 
whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and adequately 
disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial 
statements. In addition, we read all the financial and non-financial information in the Directors’ Report to identify material inconsistencies 
with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the 
implications for our report.
Opinion on financial statements
In our opinion the parent company financial statements:
 > give a true and fair view of the state of the company’s affairs as at 31 December 2011;
 > have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
 > have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared 
is consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 > adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
 > the parent company financial statements are not in agreement with the accounting records and returns; or
 > certain disclosures of directors’ remuneration specified by law are not made; or
 > we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Group financial statements of Anglo Asian Mining plc for the year ended 31 December 2011.
Steven Dobson (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
22 May 2012 44 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Company balance sheet
as at 31 December 2011
      2011 2010 
     Notes US$ US$
Non-current assets
Tangible assets    3 34,490 37,379
Investments    4 1,325,007 1,325,007
      1,359,497 1,362,386
Current assets
Debtors – amounts falling due within one year    6 21,967,675 21,981,016
Cash at bank and in hand    7 726,195 3,134,465
      22,693,870 25,115,481
Creditors: trade creditors and accruals    8 (987,700) (2,425,141)
Net current assets     21,706,170 22,690,340
Net assets      23,065,667 24,052,726
Share capital and reserves
Called up share capital    10,11 1,967,704 1,957,424
Share premium account    11 32,139,674 32,101,124
Accumulated loss    11 (11,041,711) (10,005,822)
Capital employed     23,065,667 24,052,726
These financial statements were approved by the Board of Directors on 22 May 2012 and were signed on its behalf by:
Reza Vaziri
Chief Executive  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 45
Notes to the Company financial statements
for the year ended 31 December 2011
1. Significant accounting policies and going concern
Going concern
The Directors have formed a judgement which assumes at the time of approving these financial statements that the amounts owed by the 
subsidiary undertakings will be recoverable and that it is appropriate to continue to adopt the going concern basis.
Significant accounting policies
Basis of preparation
The parent company financial statements of Anglo Asian Mining PLC (the ‘Company’) are presented as required by the Companies Act 2006 
and were approved for issue on 22 May 2012.
The financial statements are prepared under the historical cost convention and are prepared in accordance with United Kingdom Generally 
Accepted Accounting Practice.
No profit and loss account is presented by the Company as permitted by Section 408 of the Companies Act 2006 and the Company has taken 
the exemption under FRS 1 not to present a cash flow statement.
The Company has taken advantage of the exemption in paragraph 2D of FRS 29 ‘Financial Instruments: Disclosures’ and has not disclosed 
information required by that standard, as the Group’s consolidated financial statements, in which the Company is included, provide 
equivalent disclosures for the Group under IFRS 7 ‘Financial Instruments: Disclosures’.
The Company has taken advantage of the exemption under FRS 8 not to disclose transactions with wholly owned subsidiaries.
Tangible assets
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost included costs directly 
attributable to making the asset capable of operating as intended. 
Depreciation is provided on cost in annual instalments over the estimated useful lives of assets which are reviewed annually. The tangible 
assets mainly represented by office and computer equipment are depreciated on a straight line basis over four years.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying 
amount may not be recoverable.
Investments
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. Impairment is tested annually by 
comparing the net assets of the underlying subsidiary to the carrying value of the investment, with any short fall provided for during 
the period. 
Leased assets
Rentals where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account 
on a straight line basis over the period of the lease.
Debtors
Debtors are recognised and carried at the lower of their original invoiced value and recoverable amount. Provision is made when there 
is objective evidence that the Company will not be able to recover the balances in full.
Deferred taxation
Deferred tax assets are not recognised in respect of timing differences relating to tax losses where there is insufficient evidence that the 
asset will be recovered.
Share-based payments
The Company has applied the requirements of FRS 20 ‘Share-based Payment’ from 1 January 2006. In accordance with the transitional 
provisions, FRS 20 has been applied to all grants of equity instruments after 7 November 2002 that were unvested as of 1 January 2006. 
Application of this standard has been applied retrospectively.
The Company issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair 
value at the date of grant. The fair value determined at the date of the equity-settled share-based payments is expensed on a straight line 
basis over the vesting period, based on the Company’s estimate of shares that will eventually vest.
Fair value is measured by use of the Black-Scholes pricing model. The expected lives used in the model have been adjusted, based on 
management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
2. Loss attributable to members of the parent company
The loss dealt with in the financial statements of the parent company is US$1,064,083 (2010: US$716,472). 46 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Notes to the Company financial statements continued
for the year ended 31 December 2011
3. Tangible assets
        Office 
        equipment 
        US$
Cost 
As at 1 January 2011       80,246
Additions       14,639
As at 31 December 2011       94,885
Depreciation and Impairment 
As at 1 January 2011       (42,867)
Charge for the year       (17,528)
As at 31 December 2011       (60,395)
Net book value 
As at 31 December 2010       37,379
As at 31 December 2011       34,490
4. Investments
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Shares in subsidiary undertakings  
Anglo Asian Operations Limited      1,325,007 1,325,007
5. List of subsidiaries
Anglo Asian Mining PLC is the parent and ultimate parent of the Group. 
Details of the Company’s subsidiaries at 31 December 2011 are as follows:
        Percentage 
     Country of  Primary of holding 
Name    incorporation  activity %
Anglo Asian Operations Limited    Great Britain  Holding company 100
Holance Holdings Limited    British Virgin Islands  Holding company 100
Anglo Asian Cayman Limited    Cayman Islands  Holding company 100
R.V. Investment Group Services LLC   Delaware, USA  Mineral development 100
Azerbaijan International Mining Company Limited   Cayman Islands  Mineral development 100
6. Debtors
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Amounts falling due within one year  
Prepayments      73,968 55,045
HMRC      12,907 3,602
Amounts owed by subsidiary undertakings     21,880,800  21,922,369
       21,967,675 21,981,016
7. Cash
Cash and cash equivalents comprise cash held by the Company and short-term bank deposits with an original maturity of three months 
or less. The carrying amount of these assets approximates to their fair value.
There are no restrictions over the access to, and use of, the Company’s bank and cash balances, other than those that customarily relate 
to periodic short-term deposits.  www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011 47
8. Creditors
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
Amounts falling due within one year  
Trade creditors      24,715 42,175
Loan from Director      — 998,663
Accruals      962,985 1,384,303
       987,700 2,425,141
During 2011 the Company has repaid an outstanding loan from its Director Mr. Reza Vaziri totalling US$998,663. 
9. Deferred taxation
       Year ended Year ended 
       31 December 31 December 
       2011 2010 
       US$ US$
The elements of unrecognised deferred taxation are as follows:
Tax losses      1,373,532 1,075,589
Unrecognised deferred tax asset      1,373,532 1,075,589
A deferred tax asset has not been recognised in respect of timing differences relating to tax losses as there is insufficient evidence that the asset 
will be recovered. None of the assets are recognised. The asset would be recovered if suitable taxable profits were generated in future periods.
10. Share capital
    2011  2010
     Number £ Number £
Authorised     
Ordinary shares of 1 pence each    600,000,000 6,000,000 600,000,000 6,000,000
     Number US$ Number US$
Allotted and fully paid     
At the beginning of the year    110,397,307 1,957,424 108,945,949 1,934,363
At the end of the year    111,047,307 1,967,704 110,397,307 1,957,424
11. Reconciliation of shareholders’ funds and movements on reserves
      Share   
     Share premium Accumulated Shareholders’ 
     capital account loss funds 
     US$ US$ US$ US$
As at 1 January 2011    1,957,424 32,101,124 (10,005,822) 24,052,726
Loss  for the year    — — (1,064,083) (1,064,083)
Share issue    10,280 38,550 — 48,830
Share-based payment    — — 28,194 28,194
As at 31 December 2011    1,967,704 32,139,674 (11,041,711) 23,065,667
Shares issued during the year relate to those issued to Directors in lieu of cash payments and exercise of options.
12. Share-based payments
Equity-settled share option scheme
Details in relation to the Company’s equity-settled share option scheme is given in note 26 to the consolidated financial statements.
13. Subsequent events
No significant events took place during the period after the balance sheet date.
14. Auditor’s remuneration
The Company paid US$40,300 (2010: US$24,000) to its auditors in respect of the audit of the financial statements of the Company. Fees paid 
to Ernst & Young LLP and its associates for non-audit services to the Company itself are not disclosed in the individual accounts of Anglo 
Asian Mining PLC because consolidated financial statements are prepared which are required to disclose such fees on a consolidated basis.  48 Anglo Asian Mining PLC Annual report and accounts 2011 www.angloasianmining.com
Corporate information
Azerbaijan Office (principal place of business)
16 H. Aleskerov Str 
Baku 
The Republic of Azerbaijan
Secretary and Registered Office
Mr. Andrew Herbert
7 Devonshire Square 
Cutlers Gardens 
London EC2M 4YH 
United Kingdom
Company number
05227012 
Registered in England and Wales
VAT registration number
872 3197 09
Bankers – United Kingdom
HSBC
79 Piccadilly 
London W1J 8EU 
United Kingdom
Bankers – Azerbaijan
International Bank of Azerbaijan
67 Nizami Str 
Baku 
The Republic of Azerbaijan
Yapi Kredi Bank Azerbaijan JSC
32 J. Jabbarly Str 
Baku  
The Republic of Azerbaijan
Solicitors – United Kingdom
Squire Sanders & Dempsey (UK) LLP 
7 Devonshire Square 
Cutlers Gardens 
London EC2M 4YH 
United Kingdom
Solicitors – Azerbaijan
Nazal Consulting LLC
36 Islam Safarly Str 
Baku 
The Republic of Azerbaijan
Auditors
Ernst & Young LLP
1 More London Place 
London SE1 2AF 
United Kingdom
Nominated adviser and broker
Fairfax I.S. PLC
46 Berkeley Square, Mayfair 
London W1J 5AT 
United Kingdom 
Financial PR advisers
St Brides Media & Finance Limited
Chaucer House 
38 Bow Lane 
London EC4M 9AY 
United Kingdom
Registrar
Capita Registrars
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU 
United Kingdom
For further information please visit www.angloasianmining.com or contact:
Reza Vaziri Anglo Asian Mining PLC Tel: +994 12 596 3350
Andrew Herbert Anglo Asian Mining PLC Tel: +994 12 596 3350
Ewan Leggat Fairfax I.S. PLC,   
 as Nominated Adviser Tel: +44 (0)20 7598 5368 
Laura Littley Fairfax I.S. PLC,   
 as Corporate Broker Tel: +44 (0)20 7598 5368
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177  Anglo Asian Mining PLC
16 H. Aleskerov Str 
Baku 
Republic of Azerbaijan 
Tel +994 12 596 3350 
Fax +994 12 596 3354 
www.angloasianmining.com Anglo Asian Mining PLC Annual report and accounts 2011