Anglo Asian Mining PLC  
Annual report and accounts 2010
 Profitable gold/copper 
 producer focused in Azerbaijan IFC Corporate Statement
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
08 Finance Review
10 Board of Directors
11 Directors’ Report
14 Corporate Governance
15 Independent Auditor’s Report
16 Consolidated Income Statement
16  Consolidated Statement of Comprehensive Income
17 Consolidated Balance Sheet
18 Consolidated Cash Flow Statement
19  Consolidated Statement of Changes in Equity
20  Notes to the Consolidated Financial Statements
42 Independent Auditor’s Report
43 Company Balance Sheet
44  Notes to the Company Financial Statements
48 Corporate Information
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 newly producing 
Gedabek mine, the country’s first gold mine in modern times.
ANGLO ASIAN MINING PLC IS A 
CAUCASIAN AND CENTRAL ASIAN 
FOCUSED GOLD/COPPER PRODUCER 
WITH A BROAD PORTFOLIO OF 
PRODUCTION AND EXPLORATION 
ASSETS IN AZERBAIJAN.
in this report
Contract Area Locations
Gosha
Gedabek
Ordubad
Occupied territories (grey area)
Soutely
Gyzilbulakh
Vejnali
CASPIAN SEA
AZERBAIJAN
AZERBAIJAN
(NAKHCHIVAN)
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
CASPIAN SEA
AZERBAIJAN
AZERBAIJAN
(NAKHCHIVAN)
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
Visit us online at www.aamining.com
The rePubLIC oF AzerbAIjAn Is A deMoCrATIC 
CounTry sITu ATed In souTh wesTern AsIA Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 01
highlights 	 	 Profit before tax of US$19.8 million 
(2009: US$11.7 million loss) on revenue 
of US$72.0 million (2009: US$10.3 million) 
	 	 Gross profit of US$31.4 million 
(2009: US$1.9 million) 
	 	 Operating cash flow before movement 
in working capital of US$47.0 million 
(2009: US$ 2.7 million)
	 	 Gold production at Gedabek for year 
ended 31 December 2010 totalled 67,267 
ounces – exceeded 60,000 ounce gold forecast 
	 	 Produced gold at an average cash 
operating cost of US$358 per ounce 
including the Government of Azerbaijan’s share 
	 	 Company gold sales of 57,398 ounces 
completed at an average of US$1,241 per ounce 
	 	 Strengthening of processing operations 
at Gedabek – 821,176 tonnes of dry ore 
transferred during 2010 onto the leach pad 
with an average gold content of 4.33 g/t 
	 	 Copper and silver production from SART 
operations – 182.5 tonnes of copper 
and 1,460 kg of silver (46,940 ounces) 
	 	 JORC Resource upgrade at Gedabek 
– 791,000 ounces of gold, 49,300 tonnes 
of copper and 7,597,000 ounces of silver 
for all categories
	 	 Post period end, Gedabek has continued 
to perform well with gold production 
for Q1 2011 totalling 14,028 ounces
	 	 Focused on developing 1,962 sq km gold/
copper exploration portfolio with the aim 
of replicating success at Gedabek and 
developing additional mining operations
	 	 Notice of Discovery in 300 sq km Gosha 
Contract Area – further exploration planned 
with a view to confirming a small gold deposit 
with production potential
	 	 Interest-bearing loans and borrowings 
reduced from US$43.0 million at 
31 December 2009 to US$30.6 million at 
31 December 2010 – target to have repaid 
International Bank of Azerbaijan loans 
by Q4 2011/Q1 2012
	 	 Net debt, being interest-bearing loans and 
borrowings less cash and cash equivalents, 
reduced from US$42.2 million at 
31 December 2009 to US$25.5 million 
at 31 December 2010
ORDUBAD gOshA gEDABEK Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 02
chAiRmAn’s st AtEmEnt It gives me great pleasure to report on the 
progress your Company has made during 
2010 as we gained momentum in terms 
of establishing Anglo Asian as a successful 
gold producer in Central Asia, boosting 
gold and copper production at our Gedabek 
mine in Azerbaijan (‘Gedabek’) and increasing 
profitability. Additionally, we have implemented 
defined exploration and development 
programmes across our 1,962 sq km 
portfolio of prospective copper and gold 
assets in Azerbaijan to delineate and 
upgrade the Company’s resource base, 
which currently stands at 791,000 ounces 
(‘oz’) of gold 49,300 tonnes of copper and 
7,597,000 oz of silver for all categories. 
For the year ended 31 December 2010 we 
exceeded our 60,000 oz gold production 
forecast at Gedabek, producing 67,267 oz 
with an average cash operating cost of 
US$358 per oz of gold including the 
Government of Azerbaijan’s share and 
US$412 per oz of gold net of the Government 
of Azerbaijan’s share. This positions Gedabek 
as a low cost producer and, in conjunction 
with gold sales of 57,398 oz completed at an 
average of US$1,241 per oz for the year, has 
seen us deliver a healthy profit before tax of 
US$19.8 million (2009: US$11.7 million loss) 
and operating cash flow before movement 
in working capital of US$47.0 million 
(2009: US$2.7 million) in the period.
In terms of 2010 copper production at Gedabek, 
our Sulphidisation, Acidification, Recycling 
and Thickening (‘SART’) plant, which recovers 
copper in the form of a precipitated copper 
sulphide concentrate containing silver with 
commercial value, commenced production 
in February 2010 and was fully operational 
by September 2010. Interestingly, application 
of this process commercially on such a scale 
has never previously been achieved and, 
although there were a few initial teething 
problems, we are pleased that the SART plant 
has performed in line with management 
expectations. The total copper concentrate 
produced in 2010 contained 182.5 tonnes 
of copper, 1,460 kg (46,940 oz) of silver and 
25.9 kg (833 oz) of gold. 
Post period end, Gedabek has continued to 
perform well with gold production for Q1 2011 
totalling 14,028 oz, which is a 3% increase 
on production for the comparable quarter 
in 2010. Copper and silver recovery from our 
SART operations has significantly improved, 
seeing us produce 104 tonnes of copper and 
762 kg (24,499 oz) of silver in the quarter. 
During 2010 a sales protocol was agreed 
with government partners for the sale of 
400 wet tonnes of copper concentrate. 
This sale will be substantially completed in 
May 2011 and will positively impact profits 
for the first half of the 2011 financial year. 
As with the sales of gold bullion under 
the Production Sharing Agreement (‘PSA’), 
12.75% of revenue received from the copper 
concentrate goes directly to the account of 
the Government of Azerbaijan. We are also 
currently in discussions with government 
partners regarding a further sales protocol 
for copper concentrate and look forward 
to updating the market on this development 
in due course.
Gedabek is an open pit, heap leach operation. 
During 2010, the volume of dry ore being 
transferred onto the leach pad improved each 
quarter. For the year ended 31 December 2010 
we transferred 821,176 tonnes of dry ore 
with an average gold content of 4.33 g/t. 
Improving Gedabek’s processing capabilities 
remains a key focus for Anglo Asian as we 
seek to hit our full year production target 
of a minimum of 60,000 oz of gold and 
525 tonnes of copper. At present, the mine 
life stands at six years with target production 
in excess of 300,000 oz of gold, however we 
are confident that we can expand this and 
the resource through exploration over the 
whole 300 sq km Contract Area at Gedabek. 
“ Improving Gedabek’s processing capabilities remains 
a key focus for Anglo Asian as we seek to hit our full 
year production target of a minimum of 60,000 oz 
of gold and 525 tonnes of copper.”
  Gedabek gold production for FY 2010 
totalled 67,267 ounces – exceeded 
60,000 ounce gold forecast 
  Gold sales achieved for FY 2010 totalled 
57,398 ounces completed at an average 
of US$1,241 per ounce 
  Low cost producer – average cash 
operating cost of US$358 per oz 
of gold including the Government 
of Azerbaijan’s share
  SART plant has performed in line with 
management expectations – total copper 
concentrate produced FY 2010 contained 
182.5 tonnes copper, 1,460 kg (46,940 oz) 
of silver and 25.9 kg (833 oz) of gold
Khosrow Zamani
Non-executive Chairman
in sUmmARy Geological logging Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 03
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%. 
We expect to continue retaining 87.25% 
of the commercial products until at least 
the end of 2011.
In 2010, Anglo Asian generated revenues 
of US$72.0 million (2009: US$10.3 million) 
as a result of gold and silver sales from the 
Gedabek mine. The revenues were generated 
from the sale of Anglo Asian’s share of the 
production for the year which comprised 
57,398 oz of gold and 35,922 oz of silver 
(2009: 9,656 oz of gold and 2,919 oz of 
silver) at an average price of US$1,241 
and US$22 respectively (2009: US$1,057 
and US$17). 
The Group incurred mining cost of sales 
of US$40.6 million (2009: US$8.4 million) 
and therefore reported a gross profit 
of US$31.4 million for 2010 (2009: 
US$1.9 million). 
The Group incurred administration expenses 
of US$5.1 million (2009: US$4.0 million) 
which, along with finance costs for the year 
of US$6.3 million (2009: US$3.3 million), 
resulted in a profit before tax for the year of 
US$19.8 million (2009: loss of US$11.7 million). 
The price of gold steadily increased throughout 
2010 and in to 2011 and has been a key factor 
in the Company’s financial performance.
As with any business, a strong, stable team 
can be directly linked to its success and we 
believe Anglo Asian is no different. I am 
delighted with our Board and highly skilled 
management team, which are working well 
together and delivering solid results for the 
Company. Our whole staff now consists of 
approximately 427 personnel, from mining 
engineers to geologists and project managers, 
and notably during the year we appointed 
a new geological consultant. 
As ever, maintaining good health, safety, 
social and environmental standards is very 
important to us. We have now established 
a Health, Safety, Environment and Technology 
Committee (‘HSET’) at Board level, under the 
chairmanship of Professor John Monhemius, 
one of our Non-executive Directors. 
This committee has the responsibility to oversee 
all aspects of the HSET performance of the 
Company and to make recommendations to 
the Board. Post period we also appointed an 
experienced Health, Safety and Environment 
manager as a full-time member of our 
corporate management team.
With this in mind, we implemented a defined 
strategy in 2010 to reassess the data employed 
in making the JORC compliant mineral 
resources statement provided by SRK consulting 
(‘SRK’) in 2006. As a result in October 2010 
we were delighted to announce a resource 
upgrade to 791,000 oz of gold, 49,300 tonnes 
of copper and 7,597,000 oz of silver at a 
cut-off grade of 0.3 g/t gold for all categories, 
which after taking account of ore already 
mined as of 7 June 2010, gave a total gold 
uplift across the Measured and Indicated 
resource categories of 31%.
A further resource development programme, 
which aims to increase the confidence of 
the resource estimate and to increase the 
resource base, is now underway at the Gedabek 
Contract Area and includes a 17,500m drilling 
programme. We look forward to updating 
shareholders on developments and exploration 
results in due course. 
Unlocking the intrinsic value of the rest of 
our portfolio in Azerbaijan is also high on our 
agenda. Therefore in 2010 we commenced 
further exploration programmes at our two 
grassroots projects, Gosha and Ordubad, 
which are 300 sq km and 462 sq km 
respectively. Post period end in February 2011 
we submitted a Notice of Discovery at Gosha. 
Further exploration is now planned with 
a view to confirming a small gold deposit 
with production potential. At out Ordubad 
Contract Area, we have successfully extended 
the licence for a further year through to 
April 2012.
As shareholders will be aware, we have 
a strong relationship with the Government 
of Azerbaijan and we continue to be very 
grateful for its support. In addition, we 
continue to work closely with the International 
Bank of Azerbaijan (‘IBA’), which is majority 
owned by the Government of Azerbaijan 
and has supported us through our mine 
development stage with loan financing, which 
peaked at US$43.7 million in March 2010. 
With our increasing profitability we are delighted 
to announce that during the period we 
have significantly reduced this amount 
to US$29.6 million at 31 December 2010 
and subsequently to US$21.0 million as of 
25 May 2011. We are confident that by the 
end of 2011, with production revenues in 
line with management expectations, we will 
have paid off all, or nearly all, of our debt 
to the IBA. 
As highlighted in previous reports, Anglo Asian 
has a PSA in place with the Government of 
Azerbaijan based on the established Azeri 
oil industry. Up until the time Anglo Asian has 
In regard to our social responsibilities, we 
are committed to assisting Gedabek’s local 
community. During 2010, we launched our 
second beekeeping project. The programme 
consisted of a ten week beekeeping course 
in Gedabek, the first in Azerbaijan, where 
28 students graduated. The Company provided 
short-term loans to 20 graduates who bought 
65 beehives to start their beekeeping business. 
The Company’s internet café was open to the 
public during the year and over 350 people 
visited the centre. The centre offers short 
computer courses to the public and 280 people 
attended the courses. In addition, the Company 
undertook to construct a 2 km road in the 
Arikhdam village, near Gedabek, and repaired 
a connecting bridge. 
Looking ahead, we anticipate that gold 
and copper production from Gedabek will 
be steady and combined with a continued 
buoyant gold price should deliver increased 
revenues for the forthcoming year. In addition, 
I believe the development of our extensive 
exploration portfolio to fulfil our mid to 
long-term strategy of building multiple gold 
mines will gain traction during the year and 
add further value for shareholders. 
Finally, I would like to thank the employees, 
my fellow Directors, advisors and shareholders 
for their continued support and I look forward 
to updating shareholders regularly on the 
progress of what is now a highly profitable, 
cash-generative, producing gold company. 
Khosrow Zamani
Non-executive Chairman
25 May 2011
Ore crushing plant Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 04
chiEf ExEcUtivE’s REviEw Mining operations 
During the course of 2010, we were primarily 
focused on the efficiency of our flagship 
Gedabek mine, ensuring that gold production 
continued to increase quarter on quarter and 
that we realised our internal management 
target of 60,000 oz of gold for the first full 
year of production to 31 December 2010. 
As shareholders are aware, we began 
construction of the Gedabek open pit mine 
in 2008 and the mine poured its first gold 
and silver in May 2009. As is often the 
case with the start-up of a new operation, 
we experienced a few technical problems, 
however we implemented a number of 
initiatives in July and August 2009 to rectify 
these problems, expand production and 
improve efficiencies, which ideally positioned 
us for gold production growth at the 
beginning of 2010. 
As discussed in our Chairman’s statement, 
gold production exceeded management’s 
expectation for the period. For the 12 months 
to 31 December 2010, Gedabek produced 
67,267 oz of gold, of which 57,398 oz 
was sold and completed at an average of 
US$1,241 per oz for the year. It should be 
noted that Anglo Asian is currently entitled 
to 87.25% of metal production. Also, there 
will always be short-term timing differences 
between gold production for the account 
of Anglo Asian and sale of that production.
The summary table 1 of gold production 
and prices highlights the quarter-on-quarter 
gold production at Gedabek over 2010 
and post-period. 
Gedabek is a low-cost producer relative to its 
peers. For the year to 31 December 2010 we 
produced gold at a cash cost of US$412 per oz, 
excluding the Government of Azerbaijan’s share, 
and at a cash cost of US$358 per oz including 
the Government of Azerbaijan’s share.
In terms of processing, Table 2 on page 5 
summarises levels of dry ore that have been 
transferred to the leach pad on a quarterly basis 
from 1 January 2010 to 31 December 2010 
and post-period to 31 March 2011. In order 
to improve economic recovery, blending of 
high and low grade ore has been carried out 
in a ratio that will increase tonnes whilst 
maintaining the grade quality.
Extreme winter weather conditions during the 
first quarter of 2011 at Gedabek have resulted 
in the leaching process, which extracts gold 
from the crushed ore, becoming sluggish. 
This has affected gold production for Q1 2011 
resulting in production of 14,028 oz, below 
that of Q4 2010. However it represents a 3% 
“ We implemented a number of initiatives in July and 
August 2009 to expand production and improve 
efficiencies, which ideally positioned us for gold 
production growth at the beginning of 2010.”
Reza Vaziri 
President and Chief Executive
  Focused on developing 1,962 sq km 
gold/copper exploration portfolio with 
the aim of replicating success at 
Gedabek and developing additional 
mining operations
  JORC Resource upgrade at Gedabek 
– 791,000 ounces of gold, 49,300 tonnes 
of copper and 7,597,000 ounces of 
silver for all categories
	 	 Defined	exploration	strategy	aimed	at	
increasing Gedabek’s resource, proving 
reserves and extending Gedabek’s life 
of mine in progress
	 	 Notice	of	Discover y	in	300	sq	km	Gosha	
Contract – further exploration planned 
with	a	view	to	confirming	a	small	gold	
deposit with production potential
in sUmmARy Ore agglomeration
Table 1: Production at Gedabek 
  Gold produced Sales of gold  
  (including   excluding Weighted 
  Government of Government of average gold 
  Azerbaijan’s share) Azerbaijan’s share) sale price 
Quarter ended (oz) (oz) (US$)
31 March 2010 13,661 11,034 1,102
30 June 2010 14,836 13,326 1,197
30 September 2010 19,215 15,618 1,229
31 December 2010 19,555 17,420 1,371
Total for 2010 67,267  57,398 1,241 
31 March 2011 14,028  11,269 1,385 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 05
increase on the comparable period for 2010, 
which saw gold production of 13,660 oz. 
The other significant factor in reduced 
production was that gold grade in Q1 2011 
was 3.32 g/t compared to 4.79 g/t in the 
equivalent period in 2010.
Copper and silver production from our 
SART operations has performed well with 
the total copper concentrate produced from 
February 2010 to 31 December 2010 containing 
183 tonnes of copper, 1,460 kg (46,940 oz) 
of silver and 25.9 kg (833 oz) of gold. The SART 
plant was fully operational in September 2010. 
See Table 3 for SART copper, silver and 
gold production.
Copper and silver recovery from our SART 
operations improved during the first quarter 
of the current year seeing us produce copper 
concentrate that contained 104 tonnes of 
copper and 762 kg (24,499 oz) of silver. 
The plant’s designed capacity is calculated 
to produce 1,800 tonnes of copper concentrate 
per year with copper recoveries projected 
to be 50–70% and silver recoveries of 4,000 
to 6,000 g/t. Further optimisation work is 
planned to reach the designed capacity.
Maintaining high health, safety, social and 
environmental standards is very important 
to us at Anglo Asian. We have approximately 
427 personnel working for the Company 
including a local management team, Azeri 
mining and earthworks contractors and 
experienced operations personnel from 
surrounding countries, of which 367 are based 
at Gedabek, where there is a permanent mine 
Table 2: Dry ore transferred to leach pad at Gedabek
     Dry ore transferred   
     to the leach pad  Average grade 
Quarter ended    (tonnes) (g/t)
31 March 2010    167,968 4.79
30 June 2010    189,000  3.80
30 September 2010    224,000  4.30
31 December 2010    240,208 4.32 
Total for year ended 31 December 2010    821,176  4.33
31 March 2011    208,000  3.32
Table 3: SART – copper, silver and gold production (in the form of copper concentrate)
   Copper concentrate produced Copper recovered Silver produced Gold produced 
   (dry tonnes)  (tonnes)  (kg) (kg)
Four months ended 30 June 2010  120 54 432 8.2
Quarter ended 30 September 2010  110 81 648  10.9
Quarter ended 31 December 2010  86 48  380 6.8
Total for year ended 31 December 2010  316 183 1,460 25.9 
Quarter ended 31 March 2010  175 104 762 2.3
Conveyors feeding stacker
camp for employees. I am pleased to report 
that there have been no major or serious 
accidents during 2010 and to date in 2011.
Best environmental practice is also a top 
priority for the Company and accordingly 
Gedabek has been constructed to the highest 
environmental standards. In terms of power 
and water, we use our own diesel-powered 
generators and water supply is readily 
available from nearby streams. 
On the same theme, we were delighted to 
announce that in March 2010, the Company 
was awarded the following certificates: 
ISO 9001:2008 Quality Management System, 
ISO 14001:2004 Environmental Management 
System and OHSAS 18001:2007 Occupational 
Health and Safety Management System. 
Exploration
Exploration of our portfolio of gold and copper 
assets in Azerbaijan remains central to our 
growth strategy as we develop our future 
production profile to establish ourselves as 
a leading gold producer in Central Asia. 
Our portfolio, which spans 1,062 sq km, 
consists of the Gedabek Contract Area 
where we currently have gold/copper mining 
operations and the grassroots Gosha and 
Ordubad Contract Areas. All three Contract 
Areas run across the Tethyan Tectonic Belt, 
one of the world’s significant copper and 
gold bearing areas. Additionally, we hope 
to develop the 900 sq km prospects in three 
additional Contract Areas located in the 
region in Azerbaijan occupied by Armenia 
when the political situation permits.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 06
chiEf ExEcUtivE’s REviEw cOntinUED
Exploration continued
Gedabek
We have implemented a defined exploration 
strategy aimed at increasing Gedabek’s 
resource, proving reserves and in turn 
extending Gedabek’s life of mine which 
currently stands at six years with a target 
production in excess of 300,000 oz of gold.
Whilst developing the Gedabek mine in 
2008–2009 we discovered the orebody 
had higher grades than originally forecast by 
SRK and reconnaissance work also indicated 
that there were extensions of the orebody 
beyond the predicted final pit boundaries. 
Ore mined as of 31 March 2010 amounted 
to 468,000 tonnes at a grade of 4.18 g/t of 
gold. Out of this amount, 212,000 tonnes 
with an average grade of 3.0 g/t of gold was 
not included in the original reserve estimations 
undertaken by SRK in 2006. In order to help 
clarify the situation, we enlisted the help of 
SGS Mineral Services and a re-modelling and 
geometallurgical study was commissioned 
to create a more accurate ore body model 
of the Gedabek deposit. 
In April 2010 initial results were received for 
Phase 1 of the Realistic Mineral Resources 
Model (a non JORC compliant report) which 
indicated significant increases in the overall 
quantities of gold, silver and copper from 
the original 2006 SRK resource estimate of 
702,000 oz of gold, 37,500 tonnes of copper 
and 6,100,000 oz of silver. 
On 7 June 2010, further structural geological 
information including topographic surveys 
and geological mapping and data became 
available and were included to calculate a 
JORC compliant resource report at Gedabek. 
In October 2010 we were delighted to 
announce a resource upgrade of 791,000 oz 
of gold, 49,300 tonnes of copper and 
7,597,000 oz of silver at cut-off grade of 
0.3 g/t gold for all categories, which, after 
taking account of ore already mined as of 
7 June 2010, which was excluded from 
the resource report, gave a total gold uplift 
across the Measured and Indicated resource 
categories of 31.2%.
Phase 2 of the resource development 
programme is now underway with a further 
6,000m diamond drilling programme 
completed at Gedabek within the boundaries 
of the existing pit, which aims to increase the 
confidence of the revised JORC compliant 
resource and will add valuable close spaced 
information for mine planning purposes. Results 
for the 6,000m of diamond drilling are due 
imminently and we will update the market 
accordingly on this development.
A further 17,500m of drilling is now underway 
concentrating on underground exploration, 
areas within close proximity to the mine, such 
as the Choplan discovery and the Maarif target 
area, as well as other targets within the Gedabek 
Contract Area. The work programme has been 
divided as follows:
E  7,500m to be drilled in an area that 
borders the existing mine and will 
concentrate on an area underground 
at a depth of 200 to 350m; 
E  3,000m of drilling at Cholpan, a highly 
prospective area in close proximity to 
the existing mine; and
E  7,000m of drilling at Maarif and other areas 
in the Gedabek Contract Area – in 2009 
3,000m of drilling was undertaken at 
Maarif which yielded encouraging results.
Gosha
The 300 sq km Gosha Contract Area is 
situated 50 km north-west of Gedabek and 
contains three prospects: Gosha, Itkirlan and 
Munduglu. After active exploration in 2010, 
which included 3,000m of drilling and 300m 
of adit and sampling work, we were pleased 
to announce in February 2011 that we had 
Ore stacking on heap leach pad Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 07
submitted a Notice of Discovery for Gosha. 
Following the issue of the Notice of Discovery, 
the Company has six months to submit a 
Development and Production Programme 
to the Government of Azerbaijan. 
Gosha has more than 6 km of exploration 
adits from the Soviet era and our 2010 work 
programme highlighted that one of its 
mineralisation zones, which was 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. 
We are now planning to extend the adits at 
Gosha and implement a 1,500m underground 
diamond drilling programme to further explore 
the economic potential of this discovery. 
Ultimately, we aim to define new resources 
at Gosha and replicate our success at Gedabek 
with the development of an underground 
mining operation. 
Ordubad
The 462 sq km Ordubad Contract Area in the 
Nakhchivan region contains numerous targets 
including Shakardara, Piyazbashi, Misdag, 
Agyurt, Shalala, Daste Bashi and Diakchay, 
which are all located within a 5 km radius. 
A preliminary remote sensing study of the 
Ordubad Contract Area was conducted in 
2010 as well as adit cleaning and re-sampling 
of adits in two regions, Piyazbashi and Agyurt. 
Trenching and sampling was also undertaken 
in the Daste Bashi region. The Company believes 
that the Piyazbashi, Agyurt and Daste Bashi 
prospects warrant further exploration. The 
Company recently announced that the licence 
has been extended for another year through 
to April 2012. 
ADR elution column
Ore crusher and agglomerator
Outlook
Looking ahead, we anticipate gold and copper 
production from Gedabek to continue to 
perform solidly, resulting in strong revenue 
generation when combined with a strong 
gold price, which will enable us to rapidly 
pay off our loans. Indeed, we are on target 
to hit our goal of being a debt-free, profitable 
gold producer by 2012 with a portfolio of 
highly prospective advanced projects that 
could also be developed into new revenue 
streams. 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
25 May 2011 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 08
finAncE REviEw Introduction
I am pleased to report that in 2010 Anglo Asian 
generated revenues of US$72,012,543 
(2009: US$10,256,851) as a result of gold 
and silver sales from the Gedabek mine. 
The revenues were generated from the sale 
of Anglo Asian’s share of the production for 
the year which comprised 57,398 oz of gold 
and 35,922 oz of silver (2009: 9,656 oz of 
gold and 2,919 oz of silver) at an average 
price of US$1,241 and US$22 respectively 
(2009: US$1,057 and US$17). 
The Group incurred mining cost of sales 
of US$40,639,430 (2009: US$8,403,928) 
and therefore reported a gross profit of 
US$31,373,113 for 2010 (2009: US$1,852,923).
During the year there was no impairment 
charge (2009: US$5,773,180). 
The Group incurred administration expenses 
of US$5,126,926 (2009: US$4,027,521), 
which, along with finance costs for the year 
of US$6,314,522 (2009: US$3,262,986), 
resulted in a profit before tax for the year of 
US$19,798,377 (2009: loss of US$11,723,910). 
The finance costs for the year comprised 
interest on the credit facilities and loans 
net of capitalised interest, interest on letters 
of credit and accretion expenses on the 
rehabilitation provision. 
During the early part of 2010, the Group 
continued to draw on its facilities with 
IBA, which peaked at US$43.7 million in 
March 2010. Since, then the Group has 
repaid its outstanding loans to IBA, which 
have an all inclusive interest rate of 15% 
per annum, as far as cash flows have allowed. 
There is no penalty for early repayment 
of these loans. Loans outstanding with 
IBA at 31 December 2010 amounted 
to US$29.6 million. Since the end of 
the year, the Group has repaid a further 
US$8.6 million of IBA loans, leaving a 
balance of US$21.0 million at 25 May 2011.
Table 4 below shows the schedule of 
repayments for the IBA loan. 
On 20 December 2010, Anglo Asian has 
rescheduled the repayment of its outstanding 
US$998,663 loan provided by the Company’s 
CEO Reza Vaziri on 7 August 2009. This will 
allow Anglo Asian to repay loans with a higher 
interest rate as a priority during a period 
of strong operational performance for the 
Company. As announced on 12 April 2010, 
it was agreed that repayment of the loan 
would be made in one instalment on 
30 November 2010. Under the new 
rescheduled payment plan, the loan will be 
rolled over on a month by month basis with 
a 30 day notice period. The loan carries an 
all-inclusive annual interest rate of 8% per 
annum. In addition, the Group repaid its 
advance of US$158,634 from Reza Vaziri.
“ I am pleased to report that in 2010 Anglo 
Asian generated revenues of US$72,012,543 
(2009: US$10,256,851) as a result of gold and 
silver sales from the Gedabek mine.”
Andrew Herbert
Chief Financial Officer
	 	 P rofit	 before	tax	of	US$19.8	million	
(2009: US$11.7 million loss) 
  Revenue of US$72.0 million 
(2009: US$10.3 million) 
	 	 Gross	profit	of	U S$31.4	million	
(2009: US$1.9 million) 
	 	 Operating	cash	flow	before	movement	
in working capital of US$47.0 million 
(2009: US$2.7 million)
  Interest-bearing loans and borrowings 
reduced from US$43.0 million at 
31 December 2009 to US$30.6 million 
at 31 December 2010
  Target to have repaid International Bank 
of 	 Azerbaijan 	 loans 	 by 	 Q4 	 2011/Q1 	 2012
in sUmmARy Solution storage pond preparation
Table 4: Repayment schedule for IBA loans 
  2011 2012 2013 Total 
  US$ US$ US$ US$
Repayment schedule  
for IBA loans  9,630,007 18,176,000 1,821,000 29,627,007 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 09
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:
E  all direct operating expenses of 
Gedabek mine;
E  all exploration expenses incurred 
on the Gedabek Contract Area;
E  all capital expenditure incurred 
on the Gedabek mine;
E  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
E  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 cash position for 
the period ending 30 June 2012 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
As described in note 3 of the annual report, 
the accumulated mine development costs 
within producing mines are depreciated 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 on accumulated mine development 
costs. It is expected that as a result of the 
drilling and other exploration work that has 
been carried out at Gedabek in 2010, and 
the further work that is planned to be carried 
out in 2011, the Group will revise its estimate 
of recoverable gold before the end of 2011, 
which will have a corresponding impact on 
the depreciation charges going forward.
During 2010, the Group repaid outstanding 
loans from Pasha Bank and Bank Standard 
JSC so that the remaining unpaid balance 
of loans from both banks was US$nil (2009: 
US$450,000 and US$410,529 respectively). 
Remaining debt at 31 December 2010 stands 
at US$30,625,670 (2009: US$42,983,336) 
comprising US$29,627,007 due to IBA and 
US$998,663 due to Reza Vaziri. 
The Group held cash balances at 
31 December 2010 of US$5,110,851 
(2009: US$809,548) and inventories at cost 
of US$16,354,968 (2009: US$10,276,024). 
Net assets of the Group were US$58,018,453 
(2009: US$42,579,635).
During the year exploration and evaluation 
expenditure of US$3,449,470 (2009: 
US$1,685,142) was incurred and 
capitalised during the year. 
The Group did not pay any corporation tax 
during the year as it utilised its brought 
forward tax losses to set off against taxable 
profit made in 2010. At 31 December 2010, 
R.V . Investment Group Services LLC, the Group 
entity party to the PSA, carried forward 
cumulative tax losses of US$13,394,919 
(2009: US$36,998,945). The Group expects 
that, given current gold prices and a production 
forecast for 2011 of a minimum of 60,000 oz 
of gold, these tax losses will be fully utilised 
during 2011 and that the Company will 
start to pay corporation tax of 32% in 2011. 
The Company has booked a deferred tax 
liability of US$4,560,934 (2009: US$nil).
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 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 remaining 25% balance). The Company 
expects that it will not have recovered all its 
costs by the end of 2011 and that the ratio 
of sharing commercial products for Gedabek 
mine of 87.25% to Anglo Asian and 12.75% 
to the Government of Azerbaijan will continue 
throughout the year. 
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/interest rate risk
The Group has not used any interest rate 
swaps or other instruments to manage its 
interest rate profile during 2010 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
25 May 2011 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 10
BOARD Of DiREctORs Mr Khosrow Zamani
Non-executive Chairman, Age 68
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 58
Reza Vaziri has been actively involved in business 
in Azerbaijan since just after its independence. 
Since RVIG, now Anglo Asian’s subsidiary, 
signed a Production Sharing Agreement with 
the Government of Azerbaijan, Reza has been 
focused on developing the Company’s 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 53
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.
Governor John H Sununu
Non-executive Director, Age 71
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 68
Appointed 19 August 2009
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. He is a former Director 
of Obtala Resources plc and he is a member 
of the National Council of the Institute of 
Materials, Minerals and Mining (‘IOM3’) and 
is Board Chairman of the Division of Mineral 
Processing and Extractive Metallurgy. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 11
Directors’ report
The Directors submit their report and the consolidated financial statements of Anglo Asian Mining PLC for the year ended 31 December 2010.
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. Together with its subsidiaries (see note 17 on page 34) it is involved in the exploration and development of gold and 
copper projects in Azerbaijan and the operation of the Gedabek mine in 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 2 and 3, the Chief Executive’s Review on pages 4 to 7 and the Finance Review on pages 8 and 9.
The Group’s net income after taxation for the year ended 31 December 2010 amounted to US$15,237,443 (2009: loss of US$11,723,910).
Business review
A business overview is discussed on pages 2 and 3 of the Chairman’s Statement. Other risks are discussed in the Finance Review 
on pages 8 and 9.
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 10.
Directors’ interests
The Directors in office during the year and their interests in ordinary shares of the Company at 31 December 2010 and 31 December 2009 were:
        31 December  31 December 
        2010  2009 
        Number of  Number of 
Directors       shares shares
Khosrow Zamani        243,184 243,184
Reza Vaziri       32,796,830 32,796,830
Richard Round        213,958 213,958
John Sununu       10,674,540 10,070,352
John Monhemius        55,556 55,556
A total of 1,451,358 (2009: 6,224,028) shares were issued during the year to the Directors, employees and creditors in lieu of salaries, fees 
and monies owed bringing the total number of ordinary shares with voting rights to 110,397,307 at 31 December 2010 (2009: 108,945,949).
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  2010 the year  the year  year year  2010
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 950,000 —  (700,000) —  —  250,000
    4,226,684 —  (700,000)  —  —  3,526,684
All options can be exercised at various dates up to 14 August 2019.
Directors’ indemnities
The Company 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. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 12
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 2012 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 2 and 3 and the Chief Executive’s Review on pages 4 to 7. The financial position of the Group, its cash 
flows, liquidity position and borrowing facilities are described in the Finance Review on pages 8 and 9. In addition, note 24 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 hedging activities 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 2010 and in 2011 to date. The Group foresees that it will continue to repay loans ahead of the scheduled repayment date. 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 (2009: US$nil).
Substantial shareholdings
The Company has been informed that on 13 May 2011 the following shareholders held substantial 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 27 (2009: 139).
Financial instruments
Financial instruments are disclosed in note 24 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 as a Director 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 24 June 2011 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 29 to the consolidated financial statements.
Auditors
Ernst & Young LLP were appointed as auditors of the Company for the year ended 31 December 2010. 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 14.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 13
Events after the Balance Sheet
Events after the Balance Sheet are disclosed in note 30 to the consolidated financial statements.
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 parent company 
financial statements 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: 
E  select suitable accounting policies in accordance with IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and 
then apply them consistently; 
E  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; 
E  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;
E state whether they have been prepared in accordance with IFRS; and
E  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.
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: 
E select suitable accounting policies and then apply them consistently;
E make judgements and estimates that are reasonable and prudent;
E state whether they have been prepared in accordance with UK GAAP; and 
E  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the Group 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:
E  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
E  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
25 May 2011 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 14
corporate governance 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 Richard Round and 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 Khosrow Zamani and 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 Khosrow Zamani and 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 John Monhemius and 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:
E the health, safety, environmental and technological issues relating to the Company; 
E  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 
E 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.aamining.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. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 15
inDepenDent auDitor’s report
to the members of anglo asian mining plc
We have audited the Group financial statements of Anglo Asian Mining PLC for the year ended 31 December 2010 which comprise the 
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated 
Cash Flow Statement, the Consolidated Statement of Changes in Equity and the related notes 1 to 30. 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 13, 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:
E give a true and fair view of the state of the Group’s affairs as at 31 December 2010 and of its profit for the year then ended;
E have been properly prepared in accordance with IFRSs as adopted by the European Union; and
E 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:
E certain disclosures of Directors’ remuneration specified by law are not made; or
E 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 2010. 
Steven Dobson (Senior statutory auditor)
for and on behalf of Ernst & Young LLP , Statutory Auditor
London
25 May 2011
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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 16
consoliDateD income statement for the year enDeD 31 December 2010
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
     Notes US$ US$
Revenue    5 72,012,543 10,256,851 
Cost of sales     (40,639,430) (8,403,928)
Gross profit     (31,373,113) 1,852,923
Other income    6 719,446 —
Administrative expenses     (5,126,926) (4,027,521)
Write down of capitalised intangible assets    10 — (5,773,180)
Other operating expense    6 (852,734) (513,954)
Operating profit/(loss)    7 26,112,899  (8,461,732)
Finance income    5 — 808
Finance costs    11 (6,314,522) (3,262,986)
Profit/(loss) before tax     19,798,377  (11,723,910)
Income tax expense    12 (4,560,934) —
Profit/(loss) for the period attributable to the equity holders of the parent   15,237,443  (11,723,910)
Earning/(loss) per share for the period attributable to the equity holders of the parent    
Basic earnings/(loss) per share (cent per share)    13 13.88 (11.28)
Diluted earnings/(loss) per share (cents per share)    13 13.37 (11.28)
consoliDateD statement of comprehensive income
for the year enDeD 31 December 2010
 
 
 
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Profit/(loss) for the year     15,237,443 (11,723,910)
Other comprehensive income     —  —
Total comprehensive income/(loss) for the year     15,237,443 (11,723,910)
Attributable to the equity holders of the parent     15,237,443 (11,723,910) Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 17
consoliDateD balance sheet
as at 31 December 2010
      As at As at 
      31 December 31 December 
      2010 2009 
     Notes US$ US$
Non-current assets   
Intangible assets    14 34,469,441 38,745,095
Property, plant and equipment    15 43,290,670  48,298,659
Non-current prepayments    16 284,461  79,200
      78,044,572  87,122,954
Current assets   
Trade receivables and other assets    18 4,322,094 3,836,685
Inventories    19 16,354,968  10,276,024
Cash and cash equivalents    20 5,110,851 809,548
      25,787,913  14,922,257
Total assets     103,832,485  102,045,211
Current liabilities   
Trade and other payables    21 (9,263,458) (14,951,262)
Interest-bearing loans and borrowings    22 (10,641,996) (19,097,540)
      (19,905,454) (34,048,802)
Net current assets/liabilities     5,882,459  (19,126,545)
Non-current liabilities   
Provision for rehabilitation    23 (1,363,970) (1,530,978)
Interest-bearing loans and borrowings    22 (19,983,674) (23,885,796)
Deferred tax liability    12 (4,560,934)  —
      (25,908,578) (25,416,774)
Total liabilities     (45,814,032) (59,465,576)
Net assets     58,018,453 42,579,635
Equity   
Share capital    25 1,957,424 1,934,363
Share premium account     32,101,124 31,939,385
Share-based payment reserve      638,377 621,802
Merger reserve     46,206,390 46,206,390
Accumulated loss     (22,884,862)  (38,122,305)
Total equity     58,018,453  42,579,635
The consolidated financial statements were approved by the Board of Directors and authorised for issue on 25 May 2011. They were signed 
on its behalf by:
Reza Vaziri
Chief Executive Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 18
consoliDateD cash flow statement for the year enDeD 31 December 2010
       Year 
      Year ended 
      ended 31 December 
      31 December 2009 
      2010 (reclassified) 
     Notes US$ US$
Net cash provided by/(used in) operating activities    26 34,367,253  (5,631,752)
Investing activities   
Expenditure on property, plant and equipment and mine development   (8,471,353) (15,733,989)
Investment in exploration and evaluation assets (including other intangible assets)   (3,477,014) (1,402,839)
Interest received     — 808
Net cash used in investing activities     (11,948,367) (17,136,020)
Financing activities   
Shares issued in lieu of cash and for share options exercised    184,800 1,111,220
Proceeds from borrowings     3,099,100  26,898,983
Repayments of borrowings     (15,477,371) —
Interest paid     (5,924,112) (5,171,605)
Net cash (used in)/provided by financing activities     (18,117,583) 22,838,598
Net increase in cash and cash equivalents     4,301,303 70,826
Cash and cash equivalents at beginning of year    20 809,548 738,722
Cash and cash equivalents at end of year    20 5,110,851 809,548 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 19
consoliDateD statement of changes in equity
for the year enDeD 31 December 2010
     Share-based    
   Share Share payment Merger Accumulated Total 
   capital premium reserve reserve loss equity 
  Notes US$ US$ US$ US$ US$ US$
At 1 January 2009  1,851,516 30,911,013 569,729 46,206,390 (26,398,395) 53,140,253
Loss for the year — — — — (11,723,910) (11,723,910) 
Total comprehensive income — — — — (11,723,910) (11,723,910) 
Shares issued 25 82,847 1,028,372 — — — 1,111,219
Share-based payment  
charge for period 27 — — 52,073 — — 52,073
At 31 December 2009   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 25 23,061 161,739 — — — 184,800
Share-based payment  
charge for period 27 — — 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 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 20
notes to the consoliDateD financial statements for the year enDeD 31 December 2010
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 2012 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 is a public limited company incorporated 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 11 to 13.
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 Corporations Act 2006 and were approved for issue 
on 25 May 2011. These consolidated financial statements, for the year ended 31 December 2010 and 31 December 2009, 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. 
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires the use of estimates 
and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the 
reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best 
knowledge of the amount, event or actions, actual results ultimately may differ from those estimates. The principal accounting policies are 
set out below.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of Anglo Asian Mining PLC (the ‘Company’) and entities controlled 
by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company 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.
Reclassifications
Foreign exchange loss of US$223,280 was reclassified from ‘Administrative expenses’ to ‘Other operating expenses’ in comparative 
Consolidated Income Statement to conform to presentation of the 2010 Consolidated Income Statement. 
Shares issued in exchange for salaries and fees of US$1,111,220 were reclassified from operating activities into financing activities in the 
Comparative Consolidated Cash Flow Statement to conform with presentation of the 2010 Consolidated Cash Flow Statement.
Changes in accounting policies, new standards and interpretations not applied
The following new and amended IFRS and IFRIC interpretations are mandatory as of 1 January 2010 unless otherwise stated and the impact 
is described below.
Amendment to IFRS 2 ‘Company Cash-settled Share-based Payment Arrangements’
The amendment clarifies the accounting for Group cash-settled share-based payment transactions, where a subsidiary receives goods or 
services from employees or suppliers but the parent or another entity in the Group pays for those goods or services. This amendment did not 
have any impact on the financial position or performance of the Group.
IFRS 3 ‘Business Combinations’ (Revised)
The revised standard increases the number of transactions to which it must be applied including business combinations of mutual entities 
and combinations without consideration. IFRS 3 (revised) introduces significant changes in the accounting for business combinations such 
as valuation of non-controlling interest, business combination achieved in stages, the initial recognition and subsequent measurement of 
a contingent consideration and the accounting for transaction costs. This revised standard did not have any impact on the Group as there 
were no business combinations during the year.
IAS 27 ‘Consolidated and Separate Financial Statements’ (Amended)
The amended standard requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as a transaction 
with owners in their capacity as owners and these transactions will no longer give rise to goodwill or gains and losses. The standard also 
specifies the accounting when control is lost and any retained interest is remeasured to fair value with gains or losses recognised in profit 
or loss. This amendment did not have any impact on the financial position or performance of the Group. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 21
3. Significant accounting policies continued
Changes in accounting policies, new standards and interpretations not applied continued
Amendment to IAS 39 ‘Financial Instruments: Recognition and Measurement – Eligible Hedged Items’
The amendment clarifies that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial 
instrument as a hedged item. This also covers the designation of inflation as a hedged risk or portion in particular situations. The Group has 
concluded that the amendment did not have any impact on the financial position or performance of the Group, as the Group has not entered 
into any such hedges.
IFRIC 12 ‘Service Concession Arrangements’ (endorsed by the EU later than its effective date) 
It addresses how service concession operators should apply existing IFRS to account for the obligations they undertake and the rights they 
receive in service concession arrangements. As the Group does not have any service concession arrangements, the interpretation has no impact.
IFRIC 17 ‘Distribution of Non-cash Assets to Owners’
The interpretation provides guidance on accounting for arrangements whereby an entity distributes non-cash assets to shareholders either 
as a distribution of reserves or as dividends. The adoption of the interpretation did not have an impact on the Group.
IFRIC 18 ‘Transfers of Assets from Customers’
The interpretation applies to entities that receive from customers items of property, plant and equipment or cash for the acquisition 
of construction of such items. These assets are then used to connect customers to a network or to provide ongoing access to a supply 
of goods or services. As the Group does not enter into such transactions this interpretation has no impact on the Company. 
Improvements to IFRS (issued 2009)
In May 2009 the Board issued its second omnibus of amendments to its standards, primarily with a view to removing inconsistencies and 
clarifying wording. There are separate transitional provisions for each amendment. The adoption of the amendments resulted in changes 
to accounting policies but did not have any impact on the financial position or performance of the Group.
Standards issued but not yet effective (and in some cases had not yet adopted by the EU) up to the date of issuance of the Group’s 
consolidated financial statements are listed below. This listing is of standards and interpretations issued, which the Group reasonably expects 
to be applicable at a future date. The Group intends to adopt those standards when they become effective. The Group does not expect the 
impact of such changes on the consolidated financial statements to be material.
IAS 24 ‘Related Party Disclosures’ (Amendment)
The amended standard is effective for annual periods beginning on or after 1 January 2011. It clarified the definition of a related party to simplify 
the identification of such relationships and to eliminate inconsistencies in its application. The revised standard introduces a partial exemption 
of disclosure requirements for government-related entities. The Group does not expect any impact on its financial position or performance. 
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. This amendment will have no impact on the Group after initial application.
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 as defined in IAS 39. The standard is effective for annual periods beginning on or after 1 January 2013. In subsequent phases, 
the IASB will address classification and measurement of financial liabilities, hedge accounting and derecognition. The completion of this project is 
expected in early 2011. The adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Group’s financial 
assets. The Group will quantify the effect in conjunction with the other phases, when issued, to present a comprehensive picture.
IFRIC 14 ‘Prepayments of a Minimum Funding Requirement’ (Amendment)
The amendment to IFRIC 14 is effective for annual periods beginning on or after 1 January 2011 with retrospective application. The amendment 
provides guidance on assessing the recoverable amount of a net pension asset. The amendment permits an entity to treat the prepayment 
of a minimum funding requirement as an asset. The amendment is deemed to have no impact 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 will have no effect on the consolidated financial statements of the Group. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 22
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
3. Significant accounting policies continued
Changes in accounting policies, new standards and interpretations not applied continued
Improvements to IFRS (issued in May 2010)
The IASB issued Improvements to IFRS, an omnibus of amendments to its IFRS standards. The amendments have not been adopted as they 
become effective for annual periods on or after either 1 July 2010 or 1 January 2011. The amendments listed below are considered to have 
a reasonable possible impact on the Group:
E IFRS 3 ‘Business Combinations’;
E IFRS 7 ‘Financial Instruments: Disclosures’;
E IAS 1 ‘Presentation of Financial Statements’;
E IAS 27 ‘Consolidated and Separate Financial Statements’; and
E IFRIC 13 ‘Customer Loyalty Programmes’.
The Group, however, expects no impact from the adoption of the amendments on its financial position or performance. 
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 14)
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 19)
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 10, 14 and 15)
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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 23
3. Significant accounting policies continued
Significant accounting judgements, estimates and assumptions continued
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: 
E the level of capital expenditure compared to the construction cost estimates; 
E completion of a reasonable period of testing of the mine plant and equipment; 
E ability to produce metal in saleable form (within specifications); and 
E 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. It is also at this point that depreciation/amortisation 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. 
Mine rehabilitation provision (note 23) 
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 balance sheet 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 
Balance Sheet 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 12)
Judgement is required in determining whether deferred tax assets are recognised on the Consolidated Balance Sheet. Deferred tax assets, 
including those arising from un-utilised 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. Revenue is measured at 
the fair value of the consideration received or receivable. 
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.
Interest revenue 
Interest revenue is recognised as it accrues, using the effective interest rate method.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 24
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
3. Significant accounting policies continued
Leasing
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.
The Group has no significant finance leases.
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 balance sheet date, monetary 
assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet 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 balance sheet 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 balance sheet 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 
by the balance sheet date.
Value-added taxes (‘VAT’)
The Group pays VAT on purchases made in both Azerbaijan and UK. Under both jurisdictions, VAT paid is refundable. Azerbaijani jurisdiction 
permits offset of Azerbaijani VAT credit against other taxes payable to the state budget.
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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 25
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 unit 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 unit-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 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 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 asset are 
charged directly to ‘Plant and equipment’ or ‘Producing mine’ i.e. where 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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 26
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
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 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. 
The unit-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: 
E Temporary buildings –  eight years 
E Plant and equipment –  eight years 
E Motor vehicles – four years 
E Office equipment –  four years 
E 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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 27
3. Significant accounting policies continued
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.
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. The Group determines the classification of its financial assets at initial recognition.
All financial assets are recognised initially at fair value plus, in the case of investments not at fair value through profit or loss, directly 
attributable transaction costs.
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.
Cash and cash equivalents
Cash and cash equivalents comprise cash at banks and in hand and short-term deposits with an original maturity of three months or less.
For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above.
Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value and are subsequently carried at cost. Appropriate allowances for 
estimated irrecoverable amounts are recognised in the consolidated income statement when there is objective evidence that the asset is impaired. 
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. 
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, loans and borrowings.
Trade and other payables
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 accruals 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.
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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 28
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
3. Significant accounting policies continued
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, re-agents 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. 
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 statement of comprehensive income 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 ‘Mine properties’. 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 adjusted, 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. 
4. Segment information
The operations of the Group are all located within Azerbaijan. The Group has one producing asset: its gold and copper mine in Gedabek. 
All sales are made to one customer, the Group’s gold refinery, MKS Finance SA, based in Switzerland. The management of the Group does 
not segment the business when evaluating its performance.
5. Revenue
The Group’s revenue consists of bullion sold to a third-party customer. Revenue from sale of gold and silver bullion was US$71,236,994 
and US$775,549 respectively (2009: US$10,207,870 and US$48,981). Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 29
6. Other operating expenses and income
Other operating expenses consist of metal processing costs, profit/loss on disposal of property, plant and equipment, depreciation 
of rehabilitation provision, foreign currency exchange net loss and miscellaneous operating expenses.
Other operating income relates to the income generated as a result of unwinding of a provision during 2010 (2009: US$nil).
7. Operating profit/(loss)
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
     Notes US$ US$
Operating profit/(loss) is stated after charging:   
Depreciation on property, plant and equipment – owned    15 13,112,368  3,825,655
Amortisation of mining rights and other intangible assets   14 7,752,668 1,310,505
Employee benefits and expenses    9 6,503,761  3,465,499
Impairment of mining rights    10,14 — 5,000,000
Impairment of evaluation and exploration expenditure   10,14 — 773,180
Net foreign currency exchange loss     421,506 223,280
Loss on disposal of fixed assets    15 — 167,025
Inventory expensed during the year     10,976,653 4,404,476
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   102,331 66,700
The audit of the Group’s subsidiaries pursuant to legislation     108,000 78,300
Total audit fees     210,331 145,000
Tax services     — —
Total non-audit services     — 13,000
The audit fees for the parent company were US$24,000 (2009: US$15,000).
8. Remuneration of Directors 
    Consultancy Fees Benefits Total 
Year ended 31 December 2010   US$ 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.
    Consultancy Fees Benefits Total 
Year ended 31 December 2009   US$ US$ US$ US$
Ross Bhappu*   — — — —
Richard Round    — 31,319 — 31,319
John Sununu   — 91,607 — 91,607
Khosrow Zamani   — 78,296 — 78,296
Reza Vaziri   244,285 21,923 — 266,208
John Monhemius   7,830 10,987 — 18,817
Total   252,115 234,132 — 486,247
*  Fees of US$10,962 in relation to the services of Ross Bhappu as a Non-executive Director for the period ended 31 December 2009 were payable to RCF Management LLC, 
a company related to but not controlled by Ross Bhappu. Ross Bhappu resigned on 23 July 2009 and fees were no longer payable to him or RCF Management LLC. 
Directors’ fees and consultancy fees for 2009 amounting to US$111,802 included above were paid in shares. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 30
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
9. Staff numbers and costs
The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      Number Number
Management and administration     49 36
Processing and exploration     87 74
Mine operations     291 195
Total     427 305
The aggregate payroll costs of these persons were as follows:
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Wages and salaries     7,244,118 4,719,945
Share-based payments     16,575 52,073
Social security costs     1,426,543 1,074,572
      8,687,236 5,846,590
Less: salary costs capitalised as exploration, evaluation development, fixed asset and inventory expenditure  (2,183,475) (2,381,091)
Total employee costs     6,503,761 3,465,499
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 Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Short-term employee benefits     582,359  486,247
Share-based payment     16,575 25,890
      598,934  512,137
10. Write down of capitalised intangible assets
No impairment charges have been taken during the year. An analysis of impairment charges against capitalised intangible assets is provided below:
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Write down of capitalised exploration and evaluation expenditure (note 14)   — 773,180*
Write down of mining rights (note 14)     — 5,000,000**
      — 5,773,180
 *  During 2009, the Group concluded that it is unlikely to realise value at Sharkadara, Misdag, Shalala and Diakchay mining properties within the Ordubad contract area. 
The Group therefore took the decision to write down all of the exploration and evaluation expenditure incurred on these mining properties.
**  The Group also carried out an impairment analysis on the US$5 million of mining rights for the Ordubad contract area and concluded that it is unlikely to realise value 
at any of the Ordubad properties. Therefore impairment was recognised for the full amount as of 31 December 2009. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 31
11. Finance costs
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Bank interest     6,021,266  4,649,094
Finance charges on letters of credit and accretion expenses     375,099 245,781
Interest capitalised during period     (81,843) (1,631,889)
Total finance cost     6,314,522  3,262,986
Bank interest represents charges incurred on credit facilities with the International Bank of Azerbaijan and a loan from Mr Reza Vaziri, a Director 
and CEO of the Group, Bank Standard JSC and Pasha Bank. The interest levied on all of the credit facilities provided by the International Bank 
of Azerbaijan is 15% per annum (2009: 15%), interest on the loan from Reza Vaziri is at 8% per annum (2009: 8%), interest on the Bank Standard 
JSC credit line is at 19% (2009: 19%) and interest on the loan from Pasha Bank is at 17% (2009: 17%). 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 15).
12. Taxation
Corporation tax is calculated at 32% (as stipulated in the PSA for RVIG in Azerbaijan, the entity that contributes most significant portion of profit 
before tax in 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. The Group did not recognise deferred income tax in 2009 due to significant uncertainties 
around the availability of sufficient future profit streams to allow realisation of deferred tax assets. Since those issues no longer exist for tax 
losses of RVIG and management is reasonably certain regarding the availability of future profits, deferred income taxes are recognised and fully 
disclosed in these financial statements arising in RVIG. 
The major components of the income tax expenses for the year ended December 31 are: 
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Current income tax:   
Current income tax charge     — —
Deferred tax:   
Relating to origination and reversal of temporary differences    4,560,934 —
Income tax expense reported in the Consolidated Income Statement     4,560,934 —
Deferred income tax at December 31 relates to the following: 
    Consolidated Balance Sheet  Consolidated Income Statement
      Year Year 
    As at As at  ended ended 
    31 December  31 December 31 December  31 December 
    2010 2009 2010 2009 
    US$ US$ US$ US$
Deferred income tax liability:      
Property, plant and equipment    (5,834,562)  —   (5,834,562)  —
Non-current prepayments   (91,028)  — (91,028)  —
Trade and other receivables   (402,692) — (402,692) —
Inventories   (4,504,103) — (4,504,103) —
Deferred tax liability    (10,832,385)  —  
Deferred income tax asset:      
Trade and other payables    1,985,077  —  1,985,077  —
Carry forward losses   4,286,374 — 4,286,374 —
    6,271,451 — 
Deferred income tax expense     (4,560,934)  —
Net deferred tax liability    (4,560,934)  —  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 32
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
12. Taxation continued
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Profit/(loss) before tax     19,798,377 (11,723,910)
Theoretical tax charge/benefit at statutory rate of 32%     6,430,180 (3,751,651)
Effects of different tax rates for certain Group entities (28%)    28,859 57,752
Tax effect of items which are not deductible or assessable for taxation purposes:  
– losses in jurisdictions that are exempt from taxation     4,482 3,116
– non-deductible expenses     2,381,812 1,756,560
Unrecognised deferred tax assets     1,360,508 5,550,209
Benefit from unrecognised deferred tax assets of previous years    (5,550,209) (3,615,985)
Income tax expense for the year     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 recognized 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 Azerbaijan.
At the balance sheet date, the Group has unused tax losses of US$20,053,271 (2009: US$43,413,647) available for offset against future profits. 
No deferred tax asset has been recognised in respect of jurisdictions other than Azerbaijan due to the unpredictability of future profit streams 
in 2009. Unused tax losses in Azerbaijan may be carried forward indefinitely.
13. Profit/(loss) per share
The basic earnings per share of 13.88 cents (2009: loss per share of 11.28 cents) has been based on a weighted average number of shares 
in issue of 109,765,126 (2009: 103,977,437) and a net income of US$15,237,443 (2009: loss of US$11,723,910).
Dilutive earnings per share are 13.37 cents for 2010 (2009: the as with basic for 2009 because the only outstanding share options were 
anti-dilutive as the Group made a loss in 2009). Dilutive earnings per share have been based on 113,950,668, the weighted average number 
of shares determined based on the dilutive effects of 3,426,684 share options exercisable as of 31 December 2010 and 100,000 share options 
not vested by 31 December 2010.
14. Intangible assets
Exploration and evaluation assets
    Gedabek Gosha Ordubad Total 
    US$ US$ US$ US$
Cost    
As at 1 January 2009   160,328 608,922 1,134,881 1,904,131
Additions   586,629 162,117 936,396 1,685,142
Provision for impairment   — — (773,180) (773,180) 
As at 31 December 2009   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  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 33
14. Intangible assets continued
Mining rights and other intangible assets
      Other  
     Mining intangible  
     rights  assets Total 
     US$ US$ US$
Cost   
As at 1 January 2009     41,925,262 298,120 42,223,382
Additions    — 16,125 16,125
As at 31 December 2009     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
Accumulated depreciation and impairment   
As at 1 January 2009     — — —
Charge for year    (1,293,360) (17,145) (1,310,505)
Provision for impairment    (5,000,000) — (5,000,000)
As at 31 December 2009     (6,293,360) (17,145) (6,310,505)
Charge for year    (7,682,138) (70,530) (7,752,668)
As at 31 December 2010    (13,975,498) (87,675) (14,063,173)
Carrying amount   
As at 31 December 2009     35,631,902 297,100 35,929,002
As at 31 December 2010    27,949,764 254,114 28,203,878
15. 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 2009  302,530 3,649,001 — 388,343 1,014,685 438,357 30,294,100 36,087,016
Development – Gedabek — — — — — — 1,989,472 1,989,472
Capitalisation of interest — — — — — — 1,631,889 1,631,889
Additions 227 1,263,100 1,504,647 97,945 227,784 — 10,518,506 13,612,209
Transfer to producing mines — 1,111,710 38,079,581 — — — (39,191,291) —
Disposals — —  (170,000) (53,350) — — — (223,350)
As at 31 December 2009  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
Accumulated depreciation  
and impairment*        
As at 1 January 2009  (114,765) (307,584) — (116,266) (294,292) (196,340) — (1,029,247)
Charge for year (37,837) (812,018) (2,605,092) (101,934) (213,979) (54,795) — (3,825,655)
Depreciation on disposals — — 38,958 17,367 — — — 56,325
As at 31 December 2009  (152,602) (1,119,602) (2,566,134) (200,833) (508,271) (251,135) — (4,798,577)
Charge for 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)
Carrying amount        
As at 31 December 2009  150,155 4,904,209 36,848,094 232,105 734,198 187,222 5,242,676 48,298,659
As at 31 December 2010 112,310 4,807,481  33,996,103 238,042 1,047,682 143,346 2,945,705 43,290,670
*  An amount of 323,000 ounces of recoverable gold has been used to determine depreciation on accumulated mine development costs. It is expected that as a result of the 
drilling and other exploration work that has been carried out at Gedabek in 2010 and the further work that is planned to be carried out in 2011, the Group will revise its 
estimate of recoverable gold before the end of 2011.
The capital commitments by the Group have been disclosed in note 28. 
16. Non-current prepayments
Non-current prepayments represent advances made to suppliers for fixed asset purchases.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 34
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
17. 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.
18. Trade receivables and other assets
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
Gold held on behalf of the Government of Azerbaijan    1,533,403 1,589,009
VAT refund due     1,457,609 1,026,609
Trade receivables     240,664 804,750
Prepayments     235,445 279,167
Advances     845,858 89,649
Other receivables     9,115 47,501
      4,322,094 3,836,685
The carrying amount of trade and other receivables approximates to their fair value.
The VAT refund due at 31 December 2010 and 2009 relates to VAT paid on purchases. 
The Group trade receivable relates to its bullion sales. The entire trade receivable amount is with the Group’s one customer, its refiner, 
MKS Finance SA.
The gold bullion receivable on behalf of the Government of Azerbaijan relates to bullion held in the account of the Group for which the 
Government of Azerbaijan 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 of Azerbaijan. A corresponding liability to the Government of Azerbaijan is 
included in trade and other payables shown in note 21.
The Group does not consider any trade and other receivables as past due or impaired.
19. Inventories
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
At cost  
Finished goods – bullion     833,314  143,113
Finished goods – metal in concentrate     1,370,286 —
Metal in circuit     11,114,620  6,887,210
Ore stockpiles     409,995  1,769,583
Spare parts and consumables     2,626,753  1,476,118
      16,354,968  10,276,024
The Group commenced production of metal in concentrate in early 2010. No sales of metal in concentrate took place in 2010 and all produced 
volume of metal in concentrate was recognized as finished goods inventory balance as of year end.
20. 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.
21. Trade and other payables 
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
Trade creditors      2,634,393  8,690,623
Gold held on behalf of the Government of Azerbaijan    1,533,403  1,589,009
Accruals and other payables     5,095,662  4,671,630
      9,263,458  14,951,262
Trade creditors and other payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. Trade creditors 
are non-interest bearing and the creditor days were 27 (2009: 139). 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.
Letters of credit totalling US$1,885,794 (2009: US$3,161,581) were negotiated with several European banks and guaranteed by the International 
Bank of Azerbaijan at 31 December 2010 to finance working capital additions (fixed assets and working capital additions in 2009) currently due 
within trade creditors. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 35
22. Interest-bearing loans and borrowings
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
Loans from IBA     29,627,007  40,969,133
Loan from Bank Standard JSC     — 410,529
Loan from Pasha Bank     — 450,000
Loan from Reza Vaziri     998,663 995,040
Advance from Reza Vaziri – non-interest bearing     — 158,634
Total interest-bearing loans and borrowings     30,625,670 42,983,336
Loans repayable in less than one year     10,641,996 19,097,540
Loans repayable in more than one year      19,983,674 23,885,796
The Group drew down an additional US$2,703,866 of loans from its existing facilities with International Bank of Azerbaijan in order to finance 
additions in working capital in early 2010. Repayments totalling US$14,032,667 were made to IBA during 2010, US$5,365,995 of which represents 
the early repayment of amounts due in 2011. Originally scheduled repayments due in 2011 were US$15,009,328, of which US$9,643,333 
remains outstanding at 31 December 2010 after allowing for the US$5,365,995 early repayment during the year.
On 7 August 2009, the Group entered in to an agreement with Mr Reza Vaziri, a Director of the Company, for an unsecured loan of US$1.0 million. 
This loan was for the purpose of addressing the working capital constraints caused by the initial delay in ramp-up of production at Gedabek 
and to provide additional capital as the Company scale up production towards full capacity. On 12 April 2010, it was agreed that repayment 
of the loan would be made in one instalment on 30 November 2010. On 20 December 2010, it was agreed that the loan would be rolled over 
on a month by month basis with a 30 day notice period from either party to the agreement. The loan carries an all inclusive annual interest 
rate of 8% per annum.
The Group also has obtained US$395,234 from its existing facilities with Bank Standard JSC. Total outstanding principal amounting US$805,763 
was repaid during 2010. Interest payable on outstanding principal loan was 19% per annum.
Outstanding loan principal in amount of US$450,000 from Pasha Bank was fully repaid in 2010. Interest was payable at 17% per annum.
Subsequent repayments of loan outstanding from International Bank of Azerbaijan are shown in the disclosure of events after the balance 
sheet date (note 30).
As at 31 December 2010 the Group had undrawn facilities of US$227,000 (2009: US$3,520,342) after consideration of the letters of credit 
which are guaranteed by the International Bank of Azerbaijan.
23. Provision for rehabilitation
      2010 2009 
      US$ US$
Carrying amount as at 1 January      1,530,978  —
Additions/(disposals)     87,145 1,504,647
Accretion expense     76,549 26,331
Effect of change in discount rate     (330,702) —
Carrying amount as at 31 December      1,363,970 1,530,978
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$2,110,669 undiscounted liability for 2010 and US$2,005,000 undiscounted liability for 2009, 
discounted using a risk free rate of 5% for 2010 and 3.5% for 2009).
Expenditure on restoration and rehabilitation is expected to commence in 2018. Should additional reserves be found and the life of the 
mine extended, then the expenditure on restoration and rehabilitation will be delayed until the reserves of the mine have been extracted. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 36
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
24. 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 2010 and 2009 using the amounts of debt and other financial assets and 
liabilities held as at those reporting dates.
The Group has not used derivative financial instruments during 2010 or the prior year. The Board will review the need for the use of derivative 
financial instruments on an ongoing basis. 
Capital risk management
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 22, 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 International Bank of Azerbaijan, 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.
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
Interest-bearing loans and borrowings (note 22)     30,625,670 42,983,336
Trade and other payables (note 21)     9,263,458 14,951,262
Less cash and cash equivalents (note 20)     (5,110,851) (809,548)
Net debt     34,778,277 57,125,050
Equity     58,018,453 42,579,635
Capital and net debt     92,796,730 99,704,685
Gearing ratio     37% 57%
Interest rate risk management
The Group is exposed to interest rate risk as some letters of credit have been taken out by the Group at both fixed and floating interest rates. 
The Group’s cash and cash equivalents are not subject to interest. All borrowings and interest-bearing loans of the Group are at a fixed rate of 
interest. The risk is managed by the Group 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 2010. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 37
24. Financial instruments continued
Interest rate risk profile of financial liabilities
The following table sets out the carrying amount, by maturity of the Group’s financial liabilities. All loans are at a fixed rate of interest:
Year ended 31 December 2010
      More  
     Within than  
Fixed rate    1 year 1 year Total
Borrowings    10,641,996 19,983,674 30,625,670
Letters of credit    1,885,794 — 1,885,794
Floating rate      
Letters of credit    — — —
Year ended 31 December 2009
      More  
     Within than  
Fixed rate    1 year 1 year Total
Borrowings    19,097,540 23,885,796 42,983,336
Letters of credit    1,887,712 — 1,887,712
Floating rate      
Letters of credit    1,273,869 — 1,273,869
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for financial instruments at the balance sheet date. 
For floating rate cash deposits, the analysis is prepared assuming the amount of deposits outstanding at the balance sheet date was outstanding 
for the whole year. 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.
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 22 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 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
Other liabilities — — — — 1,363,970 1,363,970
  5,286,527 4,483,594 10,122,007 19,997,000 1,363,970 41,253,098
Year ended 31 December 2009
  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 1,659,568 22,034,830 27,230,250 — 51,923,311
Trade and other payables  3,182,101 8,607,580 3,161,581 — — 14,951,262
Other liabilities — — — — 1,530,978 1,530,978
  4,180,764 10,267,148 25,196,411 27,230,250 1,530,978 68,405,551 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 38
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
24. Financial instruments continued
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 balance sheet 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 are made to MKS Finance SA, a Switzerland based gold refinery. Due to the nature of the customer, the Board does 
not feel that a significant credit risk exists for receipt of revenues as the parties are effectively state owned. 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. 
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
    2010 2009 2010 2009 
    US$ US$ US$ US$
UK Sterling   102,726 338,612 9,647 17,577
Azerbaijan Manats   4,978,768 4,280,846 1,597,412 1,240,239
Other   41,278 143,767 39,473 19,654
Foreign currency sensitivity analysis
The Group is mainly exposed to the currency of the United Kingdom (UK Sterling) and the currency of Azerbaijan (Azerbaijan Manats).
The following table details the Group’s sensitivity to a 20% (2009: 20%) increase and decrease in the US Dollar against the relevant foreign 
currencies. 20% (2009: 20%) is the sensitivity rate 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 a 20% (2009: 20%) change 
in foreign currency rates. A positive number below indicates an increase in profit and other equity where the US Dollar strengthens by 20% 
(2009: 20%) against the relevant currency. For a 20% (2009: 20%) weakening of the US Dollar against the relevant currency, there would 
be an equal and opposite impact on the profit and other equity, and the balances below would be reversed.
    UK Sterling impact  Azerbaijan Manat impact
    2010 2009 2010 2009 
    US$ US$ US$ US$
Profit   15,513  64,207 563,559  608,121
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 profit of US$7,123,699 and a 10% increase in gold prices would result in an increase 
in profit of US$7,123,699. A 10% decrease in silver price would result in a reduction in profit of US$77,555 and a 10% increase in silver prices 
would result in an increase in profit of US$77,555.
25. Equity
      As at As at 
      31 December 31 December 
      2010 2009 
      US$ US$
Authorised:  
600,000,000 ordinary shares of 1 pence each     6,000,000 6,000,000
      US$ US$
Issued and fully paid:  
110,397,307 ordinary shares of 1 pence each (2009: 108,945,949 ordinary shares of 1 pence each)  1,957,424 1,934,363 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 39
25. Equity continued
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 2009     102,721,921 1,851,516
Issued to Directors and employees in lieu of salary, fees and expenses    889,137 14,239
Issued to a trade creditor in lieu of cash payment     3,011,863 30,929
Issued to Mr Reza Vaziri in satisfaction of a loan repayment    1,973,028 31,983
Exercise of stock options     350,000 5,696
At 31 December 2009     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
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 27). 
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. 
26. Notes to the cash flow statement
       Year 
      Year ended 
      ended 31 December 
      31 December 2009 
      2010 (reclassified) 
      US$ US$
Profit/(loss) before tax     19,798,377 (11,723,910)
Adjustments for:  
Finance income      — (808)
Finance costs (note 11)     6,314,522 3,262,986
Depreciation of property, plant and equipment (note 15)    13,112,368  3,825,655
Amortisation of mining rights and other intangible assets (note 14)    7,752,668 1,310,505
Loss on disposal of property, plant and equipment (note 7)    — 167,025
Share-based payment expense (note 27)     16,575 52,073
Impairment of exploration and evaluation expenditure (note 14)    — 773,180
Impairment of mining rights (note 14)     — 5,000,000
Operating cash flows before movements in working capital    46,994,510 2,666,706
Increase in trade and other receivables     (485,410) (2,362,624)
Increase in inventories     (6,023,338) (10,276,024)
Increase/(decrease) in trade and other payables     (6,118,509) 4,340,190
Cash provided by/(used in) operations     34,367,253  (5,631,752)
Income taxes paid     — — 
Net cash provided by/(used in) operating activities     34,367,253  (5,631,752)
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and 
short-term deposits with a maturity of three months or less. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 40
notes to the consoliDateD financial statements continueD
for the year enDeD 31 December 2010
27. Share-based payments
Equity-settled share options
The Group operates a share option scheme for Directors and senior employees of the Group as well as its financial adviser and nominated 
adviser and broker from the listing in 2005. 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:
    2010  2009
     Weighted  Weighted 
    Number of average Number of average 
    share exercise price share exercise price 
    options Pence options Pence
Outstanding at beginning of year   4,226,684 23 4,610,152 23
Granted during the year   — — 150,000 12
Lapsed during the year   — — — —
Forfeited during the year   — — (183,468) 43
Exercised during the year   (700,000) 5 (350,000) 5
Outstanding at 31 December   3,526,684 29 4,226,684 23
Exercisable at 31 December   3,426,684 29 3,093,351 29
The options outstanding at 31 December 2010 had a weighted average exercise price of 29 pence (ranging from 4.75 pence to 97 pence) and 
a weighted average remaining contractual life of six years. No options were granted in 2010. In the year ended 31 December 2009, options 
were granted on 14 August 2009. The aggregate of the estimated fair values of the options granted on those dates is £17,250 (US$28,242). 
The inputs into the Black-Scholes model are as follows:
Granted on 14 August 2009 
Weighted average share price      £0.12
Weighted average exercise price      £0.12
Expected volatility      80%
Expected life      2 years
Risk free rate      4.5%
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 14 August 2009 is £0.12.
Total share-based payment expense recognised by the Group
The Group recognised total expenses of US$16,575 and US$52,073 related to equity-settled share-based payment transactions in 2010 and 
2009, respectively.
The cumulative amount recognised in equity relating to share-based payments at the balance sheet date was US$638,377 (2009: US$621,802).
28. Contingencies and commitments
The Group undertakes its mining operations in 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 of Azerbaijan, compliance with environmental 
and ecological requirements, etc. The Directors believe that RVIG is in compliance with the requirements of the PSA. Subsequent to the balance 
sheet date, the exploration period on Ordubad was extended by one year through April 2012, when the Group has to announce discovery 
or release the contract area to the Government of Azerbaijan (see note 30). The Group announced a discovery on Gosha subsequent to the 
balance sheet date (see note 30) and has six months from February 2011 to present the Government of Azerbaijan 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 2010.
There were no capital commitments at 31 December 2010. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 41
29. 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 2010 and 2009, 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, Azerbaijan. The cost of the lease in the year was US$91,613 
(2009: US$91,598).
b)  Shares issued to Directors are disclosed in the Directors’ Report.
c) During the year US$268,767 (2009: US$244,285) was paid to Mr Reza Vaziri for consultancy services.
d) A non-interest bearing advance of US$158,634 from Mr Reza Vaziri was repaid.
e)  During the year US$103,696 of interest was paid on the loan of US$998,663 from Mr Reza Vaziri including US$23,918 interest that was 
accrued in 2009.
f) An office in Baku with an indirect interest of Mr Reza Vaziri is pledged under the contract on credit line with Bank Standard JSC.
30. Events after the balance sheet date
The following subsequent events relate to the period from 31 December 2010 to the date of approval of the consolidated financial statements 
on 25 May 2011.
In January 2011 the Group issued 650,000 ordinary shares on exercise of options. The shares were issued based on the exercise price of the 
options which were all at 4.75 pence.
On 22 February 2011, the Group submitted a Notice of Discovery for gold on its Gosha Contract Area. 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 of Azerbaijan for approval.
The Government of Azerbaijan has granted the Group a one year extension to continue exploration for precious and base metals on its 462 sq km 
Ordubad Contract Area. The exploration period relating to the Ordubad Contract Area will now continue until April 2012. 
According to the terms of PSA the Group’s subsidiary RVIG should submit profit tax return for provisional profit tax in first quarter of the year 
when it expects taxable profit. On 12 May 2011 RVIG made the first quarterly provisional profit tax payment of US$2.1 million, representing 
one-fourth of estimated 2011 profit tax payable at the end of each quarter.
Subsequent to the period end and up to 25 May 2011, the Company has repaid a further US$8.6 million of loans to IBA. The outstanding 
loan balance at 25 May 2011 is US$21.0 million. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 42
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 2010 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 13, 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:
E give a true and fair view of the state of the company’s affairs as at 31 December 2010;
E have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
E 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:
E  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
E the parent company financial statements are not in agreement with the accounting records and returns; or
E certain disclosures of directors’ remuneration specified by law are not made; or
E 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 2010.
Steven Dobson (Senior statutory auditor)
for and on behalf of Ernst & Young LLP , Statutory Auditor
London
25 May 2011 Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 43
company balance sheet
as at 31 December 2010
      2010 2009 
     Notes US$ US$
Non-current assets   
Tangible assets    3 37,379 62,044
Investments    4 1,325,007 1,325,007
      1,362,386 1,387,051
Current assets   
Debtors – amounts falling due within one year    6 21,981,016 26,186,905
Cash at bank and in hand    7 3,134,465 33,747
      25,115,481 26,220,652
Creditors: trade creditors and accruals    8 (2,425,141) (3,039,880)
Net current assets     22,690,340 23,180,772
Net assets      24,052,726 24,567,823
Share capital and reserves   
Called up share capital    10,11 1,957,424 1,934,363
Share premium account    11 32,101,124 31,939,385
Accumulated loss    11 (10,005,822) (9,305,925)
Capital employed     24,052,726 24,567,823
These financial statements were approved by the Board of Directors on 25 May 2011 and were signed on its behalf by:
Reza Vaziri
Chief Executive Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 44
notes to the company financial statements for the year enDeD 31 December 2010
1. Significant accounting policies and going concern
1a. 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.
1b. 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 25 May 2011.
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 rates 
of depreciation are as follows:
E Office and computer equipment  –  straight line over four years
E Software  –  straight line over three 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$699,897 (2009: US$1,443,486). Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 45
3. Tangible assets
       Office 
       equipment 
       US$
Cost 
As at 1 January 2010      80,246
Additions      —
As at 31 December 2010      80,246
Accumulated depreciation 
As at 1 January 2010      (18,202)
Charge for year      (24,665)
As at 31 December 2010      (42,867)
Net book value 
As at 31 December 2009      62,044
As at 31 December 2010      37,379
4. Investments
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      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 2010 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 Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Amounts falling due within one year  
Prepayments     55,045 16,963
HMRC     3,602 3,858
Amounts owed by subsidiary undertakings     21,922,369 26,119,461
Other debtors     — 46,623
      21,981,016 26,186,905
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. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 46
notes to the company financial statements continueD
for the year enDeD 31 December 2010
8. Creditors
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
Amounts falling due within one year  
Trade creditors     42,175 179,684
Loan from Director     998,663 998,663
HMRC     — 5,165
Accruals     1,384,303 1,856,368
      2,425,141 3,039,880
On 7 August 2009, the Company entered in to an agreement with Mr Reza Vaziri, a Director of the Company, for an unsecured loan 
of US$1.0 million. This loan was for the purpose of addressing the working capital constraints caused by the initial delay in ramp-up of 
production at Gedabek and to provide additional capital as the Company scaled up production towards full capacity. On 12 April 2010, it was 
agreed that repayment of the loan would be made in one instalment on 30 November 2010. On 20 December 2010, it was agreed that the 
loan would be rolled over on a month by month basis with a 30 day notice period from either party to the agreement. The loan carries an all 
inclusive annual interest rate of 8% per annum.
9. Deferred taxation
      Year Year 
      ended ended 
      31 December 31 December 
      2010 2009 
      US$ US$
The elements of unrecognised deferred taxation are as follows:  
Tax losses     1,075,589 1,086,293
Unrecognised deferred tax asset     1,075,589 1,086,293
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
    2010  2009
    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   108,945,949 1,934,363 102,721,921 1,851,516
At the end of the year   110,397,307 1,957,424 108,945,949 1,934,363
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 2010   1,934,363 31,939,385 (9,305,925) 24,567,823
Loss for the year   — —  (716,472) (716,472)
Share issue   23,061 161,739 —  184,800
Share-based payment   — — 16,575 16,575
As at 31 December 2010   1,957,424 32,101,124 (10,005,822) 24,052,726
Shares issued during the year relate to those issued to Directors and creditors in lieu of cash payments and exercise of options. Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 47
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 27 to the consolidated financial statements.
13. Subsequent events
The following subsequential events relate to the period from 31 December 2010 to the date of approval of the Company’s financial statements 
on 25 May 2011.
In January 2011 the Company issued 650,000 ordinary shares on exercise of options. The shares were issued based on the exercise price 
of the options which were all at 4.75 pence.
14. Auditor’s remuneration
The Company paid US$24,000 (2009: US$15,000) to its auditors in respect of the audit of the financial statements of the Company. 
Fees paid to Ernst & Young LLP and their 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.  Anglo Asian Mining PLC Annual report and accounts 2010
www.aamining.com 48
corporate information AZERBAIJAN OFFICE (PRINCIPAL PLACE OF BUSINESS)
16 H. Aleskerov str. 
Baku 
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
Street 67 
Nizami 
Baku 
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 Street 
Baku 
Azerbaijan
AUDITORS
Ernst & Young LLP
1 More London Place 
London SE1 2AF 
United Kingdom
NOMINATED ADVISER AND BROKER
Numis Securities Limited
10 Paternoster Square 
London EC4M 7LT 
United Kingdom
FINANCIAL PR ADVISERS
St Brides Media and 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.aamining.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
John Harrison Numis Securities Limited,  
 as Nominated Adviser Tel: +44 (0)20 7260 1000
James Black Numis Securities Limited,  
 as Corporate Broker Tel: +44 (0)20 7260 1000
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.aamining.com