Cash generative  
gold producer
Anglo AsiAn Mining PlC
Annual report and accounts 2009 CASPIAN SEA
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
AZERBAIJAN
CASPIAN SEA
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
AZERBAIJAN
Contract Area Locations
Gosha
Gedabek
Ordubad
Occupied territories (grey area)
Soutely
Gyzilbulakh
Vejnali
CASPIAN SEA
RUSSIA
GEORGIA
ARMENIA
IRAN
TURKEY
AZERBAIJAN
Anglo Asi An Mining P l C is A CAuCAsiA 
And Centr Al AsiAn foCused gold 
ProduCer with A broAd Portfolio 
of ProduCtion And exPlor Ation 
Assets in AzerbAijAn.
The Company’s portfolio covers 1,962 sq km of prospective exploration 
assets held under a Production Sharing Agreement with the Government 
of Azerbaijan including the newly producing Gedabek mine, the country’s 
first ever gold mine.
The Republic of Azerbaijan is a democratic 
country situated in south western Asia. Anglo Asian Mining PLC Annual report and accounts 2009 1
Highlights
Occupied Territories:
 Three concessions located within the disputed Nagorno-Karabakh region
 No value attributed to these concessions due to the geo-political situation
Key Contract Areas:
Gedabek
 Commenced gold production in May 2009
  First producing gold mine in azerbaijan 
in modern times
  Gold production to 30 april 2010 totalled 
30,323 oz 
  Targeting 53,500 oz of gold production 
for FY2010
  Gold production continuing to increase 
quarter on quarter as efficiencies at the 
mine further improve
  SART processing plant to facilitate the 
recovery of the copper and silver completed 
February 2010 – expected to be fully 
operational by September 2010 
  Initial six year mine life
  JORC compliant resource of 702,000 oz 
of gold
  Anticipate increasing the mine life and 
reserve figures by identifying additional 
resources within the mine’s proximity
Updated JORC compliant resource expected to increase 
by at least 50% from our original resource estimation 
of 702,000 ounces of gold, 37,500 tonnes of copper 
and 6,100,000 ounces of silver.
GOSha
  Located 25km northwest of Gedabek
  exploration permit for precious 
and base metals until april 2011
  exploration programme underway
ORdubad
 462 sq km Contract area
 exploration permits until april 2011
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 auditors’ 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
43 Independent auditors’ report
44 Company balance sheet
45  Notes to the Company 
financial	statements
IBC Corporate information 2 Anglo Asian Mining PLC Annual report and accounts 2009
Chairman’s statement
2009 was a particularly important year in 
your Company’s history as it saw us take 
the Gedabek gold/copper mine (‘Gedabek’) 
in Azerbaijan into production. This exciting 
event was not only a major milestone for 
Anglo Asian, but also for Azerbaijan as it 
is	the	country’s	first	operating	gold	mine	
in recent times. With gold production at 
Gedabek continuing to increase quarter on 
quarter	as	efficiencies	at	the	mine	further	
improve, and the updated JORC compliant 
resource expected to increase by at least 
50% from our original resource estimation 
of 702,000 ounces of gold, 37,500 tonnes 
of copper and 6,100,000 ounces of silver, 
we	remain	confident	of	Gedabek’s	long-term	
success	as	a	profitable	gold	producing	entity .	
Whilst our efforts have focused on Gedabek 
and ensuring its success, the development of 
our total 1,962 sq km portfolio of prospective 
copper and gold assets also remains central 
to	our	mid-term	strategy	of	increasing	our	
production portfolio. To this end, now that 
mining operations are successfully underway 
at Gedabek we look forward to advancing 
various exploration programmes across 
our portfolio.
Gedabek, located in western Azerbaijan, is 
an open pit, heap leach operation. Whilst it 
currently has an initial six year mine life with 
target production in excess of 300,000 ounces 
o f 	 g o l d , 	 w e 	 a r e 	 c o n fi d e n t 	 t h a t 	 t h r o u g h 	 t h e	
expected resource upgrade and through further 
exploration in the immediate region, this will 
be extended. Initially, the processing plant 
suffered technical teething problems, including 
the operational consistency of the secondary 
and tertiary crushers and the level of ore on 
the leach pad. However these issues have 
largely	been	rectified	through	the	installation	
of new plant equipment and we are now 
experiencing	increasing	production	figures.	
In the months ending 31 March 2010 and 
30 April 2010 we achieved gold production of 
6,167 ounces and 5,298 ounces respectively, 
and we anticipate that these levels of production 
will continue. We have already exceeded our 
revised target of 25,000 ounces of gold for 
t h e 	 fi r s t 	 1 2 	 m o n t h s 	 o f 	 o p e r a t i o n 	 t o 	 3 0 	 J u n e 	 2 0 1 0	
with total production to 30 April 2010 totalling 
30,323 ounces of gold. We have now aligned 
our production targets with the Company’s 
financial	year;	our	production	forecast	for	the	
year ending 31 December 2010 is 53,500 ounces 
of gold. 
In	terms	of	gold	sales,	we	completed	our	first	
gold sale in July 2009 and in line with increasing 
gold	production	figures,	these	sales	have	
increased over the period. The buoyant gold 
price has seen the Company completing gold 
sales ahead of forecast projections at an average 
of $1,098 per ounce for the months July 2009 
to April 2010. 
Our excellent relationship with the Government 
of Azerbaijan continues and we are very grateful 
for its support. Indeed, we were delighted when 
His Excellency Ilham Aliyev, the President of 
Azerbaijan, agreed to open Gedabek at a formal 
ceremony in May 2009. Since that time we have 
maintained a close dialogue with him and various 
ministers including the Minister of Ecology and 
Natural Resources. We also continue to work 
closely with the International Bank of Azerbaijan 
(‘IBA’), which is majority owned by the 
Government of Azerbaijan and has provided 
us with loans now amounting to $43.9 million, 
to be repaid from cash generated from 
production at Gedabek. Further details of 
these loans are given in the Financial Review. 
At this point I should once again outline 
our Production Sharing Agreement (‘PSA’). 
This sees the Government of Azerbaijan take 
51% of commercial products from each mine 
after deducting the quantities of commercial 
products necessary to enable the Company 
to recover its operating costs, capital costs 
and imputed interest. Costs allowable as 
operating, capital and imputed interest for 
e a c h 	 m i n e 	 a r e 	 d e fi n e d 	 u n d e r 	 t h e 	 t e r m s 	 o f 	 t h e	
PSA agreement. Prior to the point at which 
the Company has recovered all its carried 
forward, unrecovered operating, capital and 
imputed interest costs, the Company is able 
to recover up to a maximum of 75% of the 
imputed revenue from each mine. Up until 
the time Anglo Asian has recovered all its 
carried forward, unrecovered costs, the 
Government of Azerbaijan effectively takes 
12.75% (being 51% of the balancing 25%) 
of commercial products of each mine with 
the Company taking 87.25%. 
In tandem with our main cash generation 
from	gold,	our	silver	and	copper	by -products	
will also add to our revenues going forward. 
To this end, during the year we continued 
the development of the SART processing plant 
to facilitate the recovery of the copper and 
silver dissolved in the leaching solution. 
This was completed in February 2010, but as 
this process has never been used commercially 
on such a scale before, we expect a few start 
up	issues	in	its	first	months	of	operation.	
We hope it will be fully operational by 
September 2010. The plant capacity is 
approximately 1,800 tonnes of copper/silver 
concentrate per year although the amount 
produced will depend on ore mineralogy and 
process	efficiencies.	Initial	assay	results	show	
that the copper concentrate contains 60–70% 
copper and 4,000 to 6,000 g/t of silver. It should 
be noted that the higher silver content may be 
the result of an anomaly caused by the silver 
build up in the solution prior to the start up of 
the SART plant. The Company is in the process 
of evaluating options for the sale of copper/
silver concentrate.
Additionally, at Gedabek, leading global mining 
consultant SGS Mineral Services (‘SGS’) has been 
analysing existing drilling data with a view to 
completing a new resource and reserve model 
by the end of 2010. We were delighted to 
announce recently the initial results of Phase I 
of the Realistic Mineral Model Report, 
completed by SGS, which indicates upgrades 
for the measured, indicated and inferred gold, 
copper and silver metal contents of at least 
5 0 % . 	 W e 	 a r e 	 e x p e c t i n g 	 c o n fi r m a t i o n 	 o f 	 t h e s e	
results in the form of a new JORC compliant 
resource statement by the end of July 2010. The 
r e p o r t 	 r e p r e s e n t s 	 t h e 	 fi r s t 	 p h a s e 	 o f 	 S G S ’ s 	 w o r k ;	
t h e 	 s e c o n d 	 p h a s e 	 o f 	 t h e 	 p r o j e c t 	 w i l l 	 i n v o l v e 	 i n - fi l l	
drilling to increase the reliability of the results 
obtained from the original drill holes. This work 
 Summary
  Gedabek gold/copper mine in Azerbaijan completed May 2009 
and opened by the President of Azerbaijan
  First gold sales achieved July 2009
  Gold production to 30 April 2010 totalled 30,323 oz – 
exceeding	forecast	for	first	full	year	of	operation	to	
30 June 2010 of 25,000 oz of gold
  Second calendar year production target to 31 December 2010 
of 53,500 oz of gold Anglo Asian Mining PLC Annual report and accounts 2009 3
is expected to be completed in late 2010 and 
will increase our knowledge of the size and 
characteristics of the ore body at Gedabek.
Developing our asset portfolio forms a key 
part of our strategy as ultimately we hope 
to replicate our success at Gedabek in other 
areas. Our portfolio of Contract Areas in 
Azerbaijan consists of Gedabek, two further 
Contract Areas, Ordubad and Gosha, totalling 
1,062 sq km and three additional Contract Areas 
covering 900 sq km in territories occupied 
by Armenia, which we are unable to develop 
until access is obtained.
Exploration work has been ongoing at our 
462 sq km Ordubad and 300 sq km Gosha 
Contract Areas at a low level. We anticipate that 
this will pick up during the remainder of 2010.
A strong, stable team is key to the success of 
any business and Anglo Asian is no different. 
I am delighted with our current team, which 
is working well together and delivering solid 
results. During the year we made a number 
of appointments including that of Professor 
J o h n 	 M o n h e m i u s 	 w h o 	 j o i n e d 	 a s 	 a 	 N o n - e x e c u t i v e	
Director in August 2009, replacing Ross Bhappu. 
Professor Monhemius has over 40 years of 
experience of academic and industrial research 
and development in hydrometallurgy and 
environmental control in mining and 
metallurgical processes as well as experience 
in the public company arena.
On the management side, in October 2009 
we appointed a new Operations Manager, 
Timothy van Zeller, to oversee Gedabek on 
a	day -to-day	basis.	Timothy	has	over	30	years’	
experience in the mining industry having worked 
for many large scale mining operations in 
Zimbabwe, South Africa, Uzbekistan and 
Kazakhstan, and specialises in heap leach 
operations. His appointment has left Farhang 
Hedjazi, who stepped across from his role as 
Chief 	 T echnical 	 Officer 	 to 	 become 	 a 	 consultant 	
to the Company, free to focus on the wider 
operations including Gedabek geometallurgical 
studies and exploration activities. 
Looking forward, I believe 2010 
will prove to be a very exciting 
year for Anglo Asian. With 
further plant improvements in 
the pipeline, Gedabek is expected 
to generate increasing revenues 
from this point onwards. 
Our whole team now consists of approximately 
300 personnel from mining engineers to 
geologists and project managers. As ever, 
maintaining good health, safety, social and 
environmental standards is very important 
to us. We were therefore very pleased to be 
recognised for our efforts through the award 
o f 	 v a r i o u s 	 c e r t i fi c a t e s 	 i n c l u d i n g 	 I S O 	 9 0 0 1 : 2 0 0 8	
Q u a l i t y 	 M a n a g e m e n t 	 S y s t e m , 	 I S O 	 1 4 0 0 1 : 2 0 0 4	
Environmental Management System and OHSAS 
18001:2007	Occupational	Health	and	Safety	
Management System for our mining and gold 
and copper processing operations at Gedabek. 
In addition, we are also committed to 
Gedabek’s local community and have 
implemented community projects aimed 
at keeping an open and active dialogue 
with the local populace and assisting in 
their economic advancement. Over the past 
two years we have implemented initiatives 
including the provision of the necessary 
expertise and materials to provide two villages 
in the vicinity of Gedabek to obtain fresh 
water, as well as repairing a bridge and a 
medical facility in one of the villages.
In 2009 Anglo Asian generated revenues 
of	$10,256,851	(2008:	$nil)	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 9,656 ounces of 
gold and 2,919 ounces of silver at an average 
price of $1,057 and $17 respectively. The Group 
incurred mining cost of sales of $8,403,928 
(2008:	$nil)	and	therefore	reported	a	mining	
profit	of	$1,852,923	for	FY	2009	(2008:	$nil).	
As production ramps up we expect gross 
profits	achieved	to	improve	significantly .	
During the year there was an impairment charge 
of	$5,773,180	(2008:	$nil).	This	comprised	of	
a write down of $5,000,000 in respect of 
the mining rights of Ordubad Contract Area 
and $773,180 in respect of evaluation and 
exploration expenditure for three mining 
properties within the Ordubad Contract Area. 
The Company originally carried mining rights 
for Ordubad at $10,000,000 at the time it 
purchased rights to the Contract Area and wrote 
down an amount of $5,000,000 during 2007. 
The Directors carefully evaluated the potential of 
Ordubad Contract Area in relation to the expiry 
of the licence in 2011 and made the decision to 
write down the balance of $5,000,000.
The Group incurred administration expenses 
of 	 $4,250,801 	 (2008: 	 $4,526,090) 	 and 	 finance 	
costs	for	the	year	of	$3,262,986	(2008:	$nil).	
The Group generated a loss for the year of 
$11,723,910	(2008:	$4,471,434).	
Looking forward, I believe 2010 will prove to 
be a very exciting year for Anglo Asian. With 
further plant improvements in the pipeline, 
Gedabek is expected to generate increasing 
revenues from this point onwards. This, in 
tandem with our exploration activities, gives 
us	confidence	in	our	strategy	of	becoming	
a 	 m i d - t i e r 	 g o l d 	 a n d 	 b a s e 	 m e t a l 	 m i n i n g 	 C o m p a n y	
focused in Caucasia and Central Asia. 
I would like to thank all those involved in 
the Company for their continued support 
and belief in our projects. I truly believe that 
Anglo Asian has great potential to deliver 
good rewards to its shareholders and look 
forward	to	the	coming	year	with	confidence.
Khosrow Zamani
Non-executive Chairman
27 May 2010 4 Anglo Asian Mining PLC Annual report and accounts 2009
Mining operations 
Our focus during 2009 was channelled towards 
Gedabek, and the building of its mine and 
processing plant. These efforts bore fruit in 
May 2009 when we commenced gold mining 
operations 	 and 	 sold 	 our 	 first 	 gold 	 in 	 July 	 2009. 	
The Company began construction of an open pit 
mine in 2008. This included building infrastructure 
and developing an open pit mine, as well as 
designing and building a conventional heap 
leach pad and processing facility for the recovery 
of gold, copper and silver. It was also the 
Company’s	intention	during	the	first	year	of	
the mine’s operation to revise its JORC compliant 
resource of 15.6 million tonnes of ore grading 
1.4 g/t gold, 0.24% copper and 12.2 g/t silver 
in the indicated and inferred categories. To this 
end we completed Phase I of the Realistic Mineral 
Model Report which indicates upgrades for the 
measured, indicated and inferred gold, copper 
and silver metal contents of at least 50%. 
We expect the JORC compliant report to be 
completed by the end of July 2010 with the 
more detailed Phase II study to follow at the 
end	of	the	year	after	further	in-fill	drilling	has	
been completed. 
As is often the case, there were some technical 
problems	experienced	during	the	start-up	of	
the mine, namely at the processing facility. 
These included the operational consistency 
of the secondary and tertiary crushers, which 
curtailed production, as well as geological issues 
pertaining to the location of the leach pads. 
Accordingly, Anglo Asian implemented a 
number of initiatives in July and August 2009 
to rectify these problems, expand production 
a n d 	 i m p r o v e 	 e f fi c i e n c i e s . 	 T h e s e 	 i n i t i a t i v e s 	 i n c l u d e d	
installing two new cone crushers to improve 
operational	consistency	which	were	fitted	and	
completed at the end of September 2009. 
Anglo Asian also installed an additional tertiary 
cone crusher and sourced a reconditioned one 
that can be introduced as a standby for the 
secondary cone crusher to increase the plant’s 
operational	flexibility .	
W e	continued	to	encounter	difficulties	during	
the installation of these new cone crushers and 
also had ongoing problems with the stacker 
that affected levels of ore on the leach pad. 
These	difficulties	were	principally	the	result	
of unexpectedly high moisture content within 
the ore fed to the crushers. Subsequently, 
the Company revised its production forecasts 
to	25,000	ounces	of	gold	in	its	first	full	year	
of production to June 2010 from the initial 
70,000 ounces of gold. Since that time, we 
have experienced increasing gold production and 
as a result, we have already exceeded our revised 
p r o d u c t i o n 	 t a r g e t 	 f o r 	 o u r 	 fi r s t 	 y e a r 	 o f 	 o p e r a t i o n	
with production from July 2009 to April 2010 
totalling 30,323 ounces of gold. The table on 
page 5 illustrates monthly gold production. 
Our new stacker system will begin operating 
in late May 2010 and further increases in 
plant availability and production are expected. 
Chief Executive’s review
Our focus during 2009 was 
channelled towards Gedabek, 
and the building of its mine 
and processing plant. These 
efforts bore fruit in May 2009 
when we commenced gold 
mining operations and sold 
our first gold in July 2009. 
 Summary
  Gold production at Gedabek continuing to increase quarter 
on	quarter	as	efficiencies	at	the	mine	further	improve
  SART processing plant to facilitate the recovery of the copper and 
silver dissolved in the leaching solution completed February 2010 – 
expected to be fully operational by September 2010 
	 	 A n t i c i p a t e 	 i n c r e a s i n g 	 t h e 	 m i n e 	 l i f e 	 a n d 	 r e s e r v e 	 fi g u r e s 	 a t 	 G e d a b e k	
by identifying additional resources within the mine’s proximity
  Focused on developing 1,962 sq km gold/copper exploration 
portfolio with the aim of replicating success at Gedabek and 
developing additional mining operations Anglo Asian Mining PLC Annual report and accounts 2009 5
Table 2 overleaf summarises levels of dry ore 
which have been transferred to the leach pad 
on a monthly basis since April 2009. 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. 
The weather will always play a role in the running 
of operations given our location. Over the 
winter months we experienced extremely cold 
conditions, which resulted in the freezing of 
our solution application pipes. However we 
have now purchased below surface drippers 
which will be installed before next winter. 
We are now moving into the wet season, 
which creates its own challenges. In anticipation 
of this we have been building bigger drainage 
channels around the leach pad and increased 
the surge capacity of our solution storage ponds, 
although the fact that no ore was delivered to 
the leach pad in June 2009 was due to a lack 
of capacity on the pad. 
Post period end, we were delighted to commence 
the new SART process, which facilitates the 
recovery of the copper dissolved in the leaching 
solution. The copper is recovered in the form 
of a precipitated copper sulphide concentrate 
by -product,	which	also	contains	silver	with	
commercial value. Initial results appear 
promising. Following process optimisation, 
a plant automation system will be installed. 
The plant capacity is 1,800 tonnes of copper 
concentrate per year although the amount 
produced will depend on ore mineralogy and 
process	efficiencies.	Initial	assay	results	show	
that the copper concentrate contains 60–70% 
copper and 4,000 to 6,000 g/t of silver although 
it should be noted that the high silver content 
may be the result of an anomaly caused by 
the silver build up in the solution prior to the 
start up of the SART plant. During March and 
April 2010 we produced approximately 85 dry 
tonnes of copper concentrate using circa 30% 
of the plant’s capacity. The Company is in the 
process of evaluating options for the sale of 
copper/silver concentrate.
On more practical issues surrounding the running 
of the mine, health and safety systems remain 
at the forefront of our agenda. We abide by 
strict health and safety criteria and our record 
in this respect remains excellent with no major 
or serious accidents during 2009 and to date 
in 2010. 
Environmental principles are also high on 
our agenda and the mine is constructed to 
the highest environmental standards. In terms 
of power and water, we are using 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: 	
I S O 	 9 0 0 1 : 2 0 0 8 	 Q u a l i t y 	 M a n a g e m e n t 	 S y s t e m ,	
I S O 	 1 4 0 0 1 : 2 0 0 4 	 E n v i r o n m e n t a l 	 M a n a g e m e n t	
S y s t e m 	 a n d 	 O H S A S 	 1 8 0 0 1 : 2 0 0 7 	 O c c u p a t i o n a l	
Health and Safety Management System. 
Table 1: Production at Gedabek 
    Cumulative 
  Gold produced gold production  
  (including   (including Weighted 
  Government of Government of average gold 
  Azerbaijan’s share) Azerbaijan’s share) sale price 
Month (oz) (oz) (US$)
July 2009 802 802 944
August 2009 751 1,553 951
September 2009 2,192 3,745 997
October 2009 2,208 5,953 1,037
November 2009 2,549 8,502 1,129
December 2009 2,863 11,365 1,105
January 2010 3,483 14,848 1,106
February 2010 4,007 18,855 1,090
March 2010 6,170 25,025 1,111
April 2010 5,298 30,323 1,151
Total to 30 April 2010 30,323 30,323 1,098
In addition to gold production, Anglo Asian will also produce copper 
a n d 	 s i l v e r 	 b y - p r o d u c t s 	 w h i c h 	 w i l l 	 a d d 	 t o 	 o u r 	 r e v e n u e 	 s t r e a m 	 g o i n g 	 f o r w a r d .	
During the year we continued the development of a Sulphidisation, 
A c i d i fi c a t i o n , 	 R e c y c l i n g 	 a n d 	 T h i c k e n i n g 	 ( ‘ S A R T ’ ) 	 p r o c e s s i n g 	 p l a n t 	 t o 	 f a c i l i t a t e	
the recovery of the copper and silver dissolved in the leaching solution. 
We were delighted to commence the new SART process in February 2010, 
however as this process has never been used commercially on such a scale 
before,	we	foresee	a	few	teething	issues	in	its	first	months	of	operation.	
We expect the SART process to be fully operational by September 2010.
The plant capacity is 1,800 tonnes of copper concentrate per year although 
the	amount	produced	will	depend	on	ore	mineralogy	and	process	efficiencies.	
Initial assay results show that the copper concentrate contains 60–70% copper and 4,000 to 6,000 g/t of silver, 
although it should be noted that the high silver content may be the result of an anomaly caused by the silver build 
up in the solution prior to the start up of the SART plant. During March and April 2010 we produced approximately 
85 dry tonnes of copper concentrate using circa 30% of the plant’s capacity. The Company is in the process of 
evaluating options for the sale of copper/silver concentrate.
 SART - Copper and Silver Production 6 Anglo Asian Mining PLC Annual report and accounts 2009
Chief Executive’s review continued
Mining operations continued
We have good relationships with our labour 
force of approximately 300 people including 
a local management team, Azeri mining 
and earthworks contractors and experienced 
operations personnel from surrounding countries. 
In order to accommodate our staff we have 
built a permanent mine camp at Gedabek. 
We also have a highly active community policy 
aimed at enfranchising the local community 
and assisting in their economic advancement. 
To date, Anglo Asian has carried out several 
community development projects including 
providing seminars and training on beekeeping 
and we have a pilot programme in place to 
give soft loans to beekeeping families to start 
in business. Anglo Asian has also provided the 
expertise and material to enable two villages 
local to the Gedabek mine to obtain fresh water, 
as well as repairing a bridge and a medical 
facility in one of the villages. Additionally, we 
have set up a training centre in Gedabek and 
have partnered with two international Non 
Government Organisations (‘NGOs’) to offer 
local residents vocational training such as welding 
and business development courses such as 
beekeeping, tailoring, computer skills and 
business	start-up.	The	centre	is	also	used	for	
an internet café at Gedabek, which gives ongoing 
training in the use of computers and free use 
of the internet for the local community. 
Exploration
Although we are currently focused on 
development and successful production 
at Gedabek, exploration still remains central 
to	our	long-term	strategy	of	increasing	our	
production	profile.	Our	portfolio	includes	
three	Contract	Areas	covering	1,062	sq	km:	
Gedabek, Ordubad and Gosha, which run 
across the Tethyan Tectonic Belt, one of the 
world’s	significant	copper	and	gold	bearing	
areas. We believe that with further exploration, 
our exploration portfolio has the potential 
to replicate Gedabek and generate further 
producing entities. Additionally, we hope 
to develop our 900 sq km prospects in three 
additional Contract Areas located in the 
region in Azerbaijan occupied by Armenia 
when the political situation permits. 
Gedabek
Exploration activities within the Gedabek 
Contract Area continue. During the initial 
development of the mine, it became evident 
that in a number of areas the ore had higher 
grades than forecast by the original ore body 
model and there are also extensions 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. Out of this amount, 
212,000 tonnes with an average grade of 
3.0 g/t was not included in the original reserve 
estimations. In order to help clarify the situation, 
we enlisted the help of SGS Mineral Services 
and, at the end of August 2009, one of its 
consultants visited Gedabek to review its 
geology and existing drill logs. Subsequently, 
 Increasing Gedabek’s Resource
During the initial development of the Gedabek mine, it became evident that 
in a number of areas the ore had higher grades than forecast by the original 
ore body model by mining consultants SKS, and that there were also extensions 
beyond	the	predicted	final	pit	boundaries.	In	order	to	help	clarify	the	situation,	
we enlisted the help of SGS Mineral Services (‘SGS’) and at the end of August 2009, 
one of its consultants visited Gedabek to review its geology and existing drill logs. 
S u b s e q u e n t l y , 	 a 	 r e - m o d e l l i n g 	 a n d 	 a 	 g e o - m e t a l l u r g i c a l 	 s t u d y 	 w a s 	 c o m m i s s i o n e d	
to create a more accurate ore body model of the Gedabek deposit. 
Initial results of Phase I of the Realistic Mineral Resources Model Report were 
announced in April 2010 and indicated upgrades for the measured, indicated 
and inferred gold, copper and silver metal contents of at least 50% from the 
original JORC compliant mineral resource statement of 702,000 ounces of gold, 37,500 tonnes of copper and 
6,100,000 ounces of silver. The mineral resources were estimated by accessing, reviewing, validating and processing 
the whole geological and chemical information from 141 exploration diamond and reverse circulation (29 diamond, 
34 reverse circulation and 78 combined) drill holes and 262 production blast holes. 
The	report	represents	the	first	phase	of	SGS’s	work;	the	second	phase	of	the	project	will	involve	in-fill	drilling	to	
increase the reliability of the results obtained from the original drill holes. This work is expected to be completed 
by	late	2010	and	will	increase	the	Board’s	confidence	in	the	new	resource	evaluations.	
Table 2: Dry ore transferred to leach pad at Gedabek
   Dry ore  
   transferred  Average 
   to the leach pad  grade 
Month  (tonnes) (g/t)
March 2009  9,730 2.77
April 2009  24,066 2.50
May 2009  23,702 2.95
June 2009  — —
July 2009  29,785 4.20
August 2009  37,317 4.07 
September 2009  18,403 5.04
October 2009  40,603 3.27
November 2009  27,022 4.59
December 2009  62,346 4.04
January 2010  59,208 4.62
February 2010  70,118 5.17
March 2010  66,000 4.68
April 2010  56,667 4.42 Anglo Asian Mining PLC Annual report and accounts 2009 7
a	re-modelling	and	a	geometallurgical	study	
was commissioned to create a more accurate 
ore body model of the Gedabek deposit. 
Initial results of Phase I of the Realistic Mineral 
Resources Model Report were announced in 
April 2010 and indicated upgrades for the 
measured, indicated and inferred gold, copper 
and silver metal contents of at least 50% from 
the JORC compliant mineral resources statement 
provided by SRK in 2006. The mineral resources 
were estimated by accessing, reviewing, validating 
and processing the whole geological and 
chemical information from 141 exploration 
diamond and reverse circulation (29 diamond, 
34 reverse circulation and 78 combined) 
drillholes and 262 production blastholes. 
It is important to note that the report 
represents	the	first	phase	of	SGS’s	work;	
the second phase of the project will involve 
in-fill	drilling	to	increase	the	reliability	of	the	
results obtained from the original drill holes. 
This work is expected to be completed by late 
2010	and	will	increase	the	Board’s	confidence	
in the new resource evaluations. The results 
of the report are therefore subject to revision. 
We also continued exploration work at Maarif, 
another property on the Gedabek Contract 
Area. This included pioneer drilling following 
geochemical and geophysical surveys. This will 
be followed by analysis and interpretation of 
the results in the second half of 2010. 
Gosha 
The 300 sq km Gosha Contract Area is situated 
50	km	north-west	of	Gedabek	and	contains	
t h r e e 	 p r o s p e c t s : 	 G o s h a , 	 I t k i r l a n 	 a n d 	 M u n d u g l u .	
In April 2009 the Company was granted a two 
year extension by the Government of Azerbaijan 
to continue exploration in this area for precious 
and base metals until 13 April 2011. 
W e 	 have 	 access 	 to 	 a 	 significant 	 amount 	 of 	 data 	
g e n e r a t e d 	 i n 	 t h e 	 S o v i e t - e r a 	 f r o m 	 t h i s 	 a r e a , 	 w h i c h ,	
used in tandem with additional data that 
we have collected, will form the basis for an 
extensive exploration programme. Ultimately, 
we	aim	to	define	new	resources	and	replicate	
our success at Gedabek with the development 
of an underground mining operation. 
Gosha has more than 6 km of exploration audits 
from	the	Soviet-era,	of	which	the	richest	
mineralisation zone has a prospect of narrow 
vein type renegade gold deposit. In addition 
to	this	zone,	which	according	to	Soviet-era	
studies contains approximately 3.2 tonnes of 
gold with average grade of 14.0 g/t, there are 
several other vein type mineralisation zones. 
In total according to these studies, Gosha has 
a resource of 8 tonnes of gold in the indicated 
and inferred categories. 
Additionally, assay results from extensive 
samplings completed by the Company on the 
richest mineralisation zone indicate a close 
match with previous works during the 
Soviet-era.	W ith	this	in	mind	we	launched	
a new exploration programme for 2010 
including diamond core drilling. Furthermore 
a contract for an extension of a new audit was 
signed with a local company for 2010, in order 
to cross cut the ore vein at a lower depth. 
Ordubad
The 462 sq km Ordubad Contract Area in the 
Nakhchivan region contains numerous targets 
including Shakardara, Piyazbashi, Misdag, 
Agyurt, Shalala and Diakchay, which are all 
located within a 5km radius. In April 2009 
we were granted a two year extension to 
continue exploration in this area for precious 
and base metals until 13 April 2011.
During	2009	based	on	previous	Soviet-era	
studies, we launched a core drilling programme 
at the Misdag, Shalala and Diakchay targets. 
These results did not correlate to the data 
indicated	in	the	Soviet-era	reports.	In	light	
of	this,	we	have	modified	our	exploration	
strategy at the Ordubad Contract Area and 
started a new regional geological survey over 
the area, in addition to limited exploration 
activities at the Agyurt target area with a view 
to extending the licence period. Consequently, 
we have made a decision to write off $773,180 
in exploration and evaluation expenditure 
attributable to Misdag, Shalala and Diakchay 
mining properties as well as writing down the 
remaining $5,000,000 mining rights attributable 
to Ordubad Contract Area.
Product Sharing Agreement (‘PSA’)
The Company has exclusive rights, through 
one of its subsidiaries, RV Investment Group 
Services LLC, to explore and extract all minerals 
from all of the Contract Areas through a PSA 
with the Government of Azerbaijan. This also 
provides Anglo Asian with exclusive rights to 
data	from	the	Soviet-era	covering	these	areas.	
Under the terms of the PSA, which is modelled 
on Azerbaijan’s internationally recognised oil 
industry practices, the Government of Azerbaijan 
is entitled to 51% of commercial products 
from each mine after deducting the quantities 
of commercial products necessary to enable 
the Company to recover its operating costs, 
capital costs and imputed interest. Costs 
allowable as operating, capital and imputed 
interest	for	each	mine	are	defined	under	the	
terms of the PSA agreement. Prior to the point 
at which the Company has recovered all its 
carried forward, unrecovered operating, capital 
and imputed interest costs, the Company is 
able to recover up to a maximum of 75% of 
the imputed revenue from each mine. Up until 
the time Anglo Asian has recovered all its carried 
forward, unrecovered costs, the Government 
of Azerbaijan effectively takes 12.75% (being 
51% of the balancing 25%) of commercial 
products of each mine with the Company 
taking 87.25%. 
Reza Vaziri 
President and Chief Executive
27 May 2010 8 Anglo Asian Mining PLC Annual report and accounts 2009
Introduction
I am pleased to report that in 2009 Anglo Asian 
generated 	 revenues 	 of 	 $10,256,851 	 (2008: 	 £nil)	
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 9,656 ounces of 
gold and 2,919 ounces of silver at an average 
price of $1,057 and $17 respectively. 
The Group incurred mining cost of sales of 
$8,403,298 and therefore reported a mining 
profit	of	$1,852,923	for	FY2009	(2008:	$nil).	
Low production of gold and silver in the early 
months of operation was the main factor in 
the	amount	of	mining	profit.	
After consideration of all available facts and 
information, the Board has taken the view 
that the Group entered into commercial 
production from 1 July 2009. As such the 
intangible mining asset carried for Gedabek 
has been amortised over the period since 
1 July 2009 on a unit of production basis. 
During the year there was an impairment 
charge	of	$5,773,180	(2008:	$nil).	This	
comprised of a write down of $5,000,000 
in respect of the mining rights of Ordubad 
Contract Area and $773,180 in respect of 
evaluation and exploration expenditure for 
three mining properties within the Ordubad 
Contract Area. The Company originally 
carried mining rights for Ordubad at 
$10,000,000 at the time it purchased 
rights to the Contract Area and wrote 
down an amount of $5,000,000 during 
2007. The Directors carefully evaluated the 
potential of Ordubad Contract Area in 
relation to the expiry of the licence in 2011 
and made the decision to write down the 
balance of $5,000,000.
Finance review
 Summary
	 	 Mining	profit	of	$1,852, 923	for	FY	2009	(2008:	$nil)
  Revenue of $10,256,851
  Operating loss of $11,723,910 
The Group incurred administration expenses 
o f 	 $ 4 , 2 5 0 , 8 0 1 	 ( 2 0 0 8 : $ 4 , 5 2 6 , 0 9 0 ) 	 w h i c h 	 a l o n g	
with	finance	costs	for	the	year	of	$3,262,986	
(2008:	$nil)	resulted	in	a	loss	for	the	year	of	
$11,723,910	(2008:	$4,471,434).	The	finance	
costs for the year comprises interest on the credit 
facilities and loans net of capitalised interest, 
interest on letters of credit and accretion 
expenses on the rehabilitation provision. 
In addition to the $25.0 million credit facility 
obtained from the IBA during 2008, the 
Group obtained three further loans from the 
IBA for the value of $9.4 million, $6.5 million 
and $3.0 million giving an aggregate of 
$18.9 million obtained in 2009. All loans 
carry an interest rate of 15% per annum. 
The loan of $9.4 million is to be repaid in nine 
quarterly	instalments	(first	eight	tranches	of	
$1,044,000 and a ninth tranche of $1,048,000) 
with	the	first	instalment	due	in	March	2011	
and then every three months to March 2013. 
His Excellency llham Aliyev, 
President of azerbaijan opening 
the Gedabek gold/copper mine 
in May 2009. Anglo Asian Mining PLC Annual report and accounts 2009 9
The loan of $6.5 million is to be repaid in 
13	instalments	of	$500,000	with	the	first	
instalment due in June 2010 and then every 
three months until June 2013. The loan of 
$3.0 million is to be repaid in six monthly 
instalments of $500,000 beginning from 
April	2010.	Subsequent	to	the	year -end	date,	
the repayment terms of the loan has been 
revised. Table 3 above shows the repayment 
schedule for IBA loans at 31 December 2009 
and at 27 May 2010.
The Group also obtained a $1.0 million 
unsecured loan from its CEO, Mr Reza Vaziri, 
to provide additional working capital for the 
Group. Under the terms of the loan agreement, 
an all inclusive annual interest rate of 8% per 
annum will be applied. 20% of initial net gold 
sales will be used to service repayment of this 
loan with the latest date for the outstanding 
balance to be paid in full being 7 February 2010. 
Subsequent	to	the	year -end	date	and	as	
announced on 12 April 2010 the repayment 
term of this loan has been changed so that the 
entire loan is repayable on 30 November 2010.
As announced on 8 March 2010, the Group 
obtained a credit line from Bank Standard JSC 
for an amount of $1.0 million repayable on 
11 December 2010. Interest is payable on the 
credit line at 19% per annum. The Group has 
obtained a loan from Pasha Bank for $450,000 
for the purposes of purchasing two mining 
fleet	vehicles.	Interest	is	payable	at	17%.	The	
loan is repayable in instalments with the last 
instalment payable in December 2010.
During the year Anglo Asian continued to draw 
down on its available credit facilities and at 
the end of the year had debt of $42,983,336 
(2008:	$17,396,890).	
As at 31 December 2009 the Group had undrawn 
facilities	of	$589,471	(2008:	$5,663,778)	
after consideration of the letters of credit 
which are guaranteed by the International 
Bank of Azerbaijan.
The Group held cash balances of $809,548 
(2008:	$738,722)	and	inventories	at	cost	of	
$10,276,024	(2008:	$nil).	
Exploration and evaluation expenditure of 
$1,685,142	(2008:	$352,344)	were	incurred	
and capitalised during the year. 
The Group did not pay any corporation tax 
during the year as it continued to be loss making. 
No deferred tax asset has been recognised. 
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 2011 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. 
Refer	to	note	1	to	the	consolidated	financial	
statements for the facts and assumptions the 
Directors used to base their conclusion on.
Commodity price risk
The	Group	obtained	its	first	revenues	during	
the year and also entered into the phase of 
commercial production from 1 July 2009. 
As	such	its	revenue	is	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 
r i s k 	 o n 	 i t s 	 e x p e c t e d 	 f u t u r e 	 p r o d u c t i o n ; 	 h o w e v e r	
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	2009	but	will	
review this requirement on a periodic basis.
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. 
D u r i n g 	 t h e 	 y e a r 	 i t 	 h a d 	 e n t e r e d 	 i n t o 	 s h o r t - t e r m	
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
E x p o s u r e 	 t o 	 i n t e r e s t 	 r a t e 	 fl u c t u a t i o n s 	 i s 	 m i n i m a l	
a s 	 t h e 	 G r o u p 	 c u r r e n t l y 	 h a s 	 n o 	 fl o a t i n g 	 r a t e 	 d e b t .	
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
27 May 2010
Table 3: Repayment schedule for IBA loans at 31 December 2009 and at 27 May 2010
  2010 2011 2012 2013 T otal 
  US$ US$ US$ US$ US$
Repayment schedule for IBA loans  
as at 31 December 2009 17,083,337 18,592,663 6,176,000 2,048,000 43,900,000
Impact of agreement  
to reschedule loan repayments (8,416,665) (3,583,335) 12,000,000 — —
Repayment schedule for IBA 
loans as at 27 May 2010  8,666,672 15,009,328 18,176,000 2,048,000 43,900,000 10 Anglo Asian Mining PLC Annual report and accounts 2009
Mr Khosrow Zamani
NON-ExECUTIVE CHAIRMAN, AGE 67
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 
$2	billion,	diversified	across	the	fi n a n c i a l , 	 o i l	
and gas, mining and manufacturing sectors. 
Mr Zamani has over 30 years of experience 
i n 	 i n v e s t m e n t 	 a n d 	 p r o j e c t 	 fi n a n c e 	 a n d 	 b a n k i n g	
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 several banks and 
financial	services	and	private	equity	funds	
active in CIS, central Asia and Caucasia.
Mr Reza Vaziri
PRESIDENT CHIEF ExECUTIVE, AGE 57
Appointed 29 September 2008
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	F oreign	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, Jahangir Hajiyev and 
Henry Kissinger. Reza resides in Baku, 
London and Washington, DC.
Mr Richard Round FCCA
NON-ExECUTIVE DIRECTOR, AGE 52
Appointed 23 July 2008
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	
C h i e f 	 F i n a n c i a l 	 O f fi c e r 	 o f 	 A q u a m a r i n e 	 P o w e r	
a wave power developer in Scotland.
Governor John H Sununu
NON-ExECUTIVE DIRECTOR, AGE 70
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, 
h e 	 c o - h o s t e d 	 C N N ’ s 	 C r o s s fi r e , 	 r a n 	 a n 	 e n g i n e e r i n g	
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 
P artners,	a	private	financial	firm,	and	currently	
serves as President of JHS Associates Ltd.
Professor John Monhemius
NON-ExECUTIVE DIRECTOR, AGE 66
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’ 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 	 in 	 the 	 scientific 	
literature and he has supervised more than 
30 PhD students. From 1986–96, he was a 
c o - f o u n d e r 	 a n d 	 d i r e c t o r 	 o f 	 C o n s o r t 	 R e s e a r c h 	 L t d ,	
a consultancy specialising in gold and base 
metal ore processing. Currently, he is a 
Non-executive	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.
Board of Directors Anglo Asian Mining PLC Annual report and accounts 2009 11
Directors’ report
The Directors submit their report and the financial statements of Anglo Asian Mining PLC for the year ended 31 December 2009.
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 33) 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 Group’s financial performance for the year was in line with Directors’ expectations. The Group loss after taxation for the year ended 
31 December 2009 amounted to $11,723,910 (2008: loss of $4,471,434).
The record of the business during the year and an indication of likely further developments may be found in the Chairman’s Statement, (pages 2 and 3) 
the Chief Executive’s Review (pages 4 to 7) and the Finance Review (pages 8 and 9).
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 2009 and 31 December 2008 were:
       31 December  31 December 
       2009  2008 
       Number of  Number of 
Directors       shares shares
Khosrow Zamani        243,184 133,834
Reza Vaziri       32,796,830 30,689,278
Richard Round        213,958 132,872
Ross Bhappu (resigned 23 July 2009)      — —
John Sununu       10,070,352 9,836,300
John Monhemius (appointed 19 August 2009)      55,556 —
A total of 6,224,028 (2008: 3,100,041) shares were issued during the year to the Directors, Resource Capital Fund III L.P ., employees and creditors 
in lieu of salaries, fees and monies owed bringing the total number of ordinary shares with voting rights to 108,945,949 at 31 December 2009 
(2008: 102,721,921).
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  2009 the year  the year  year year  2009
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
Ross Bhappu 42.5 12 April 2016 123,965 — — (123,965) — —
John Monhemius 11.5 14 August 2019 — 150,000 — — — 150,000
Others        
 97.0 11 August 2015 247,925 — — — — 247,925
 42.5 12 April 2016 59,503 — — (59,503) — — 
 8.9 1 August 2018 200,000 — — — — 200,000
 4.8 4 December 2018 1,300,000 — (350,000) — — 950,000
   4,610,152 150,000 (350,000) (183,468) — 4,226,684
All options can be exercised at various dates up to 14 August 2019. 12 Anglo Asian Mining PLC Annual report and accounts 2009
Directors’ report continued
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.
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 2011 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. Refer to note 1 to the consolidated financial statements for the facts and assumptions the Directors used to base their 
conclusion on.
Charitable and political contributions
There were no charitable or political contributions made during the year (2008: $nil).
Substantial shareholdings
The Company has been informed that on 27 May 2010 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 29.92
Khagani Bashirov       18,087,758 16.50
John Sununu       10,734,540 9.79
Resource Capital Fund III L.P .       6,459,523 5.89
Limelight Industrial Developments Limited      4,038,600 3.68
The number of shares in issue at this date was 109,616,804.
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 139 (2008: 35).
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 28 June 2010 at which this report and 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 2009 in place of the retiring auditors, Deloitte LLP . 
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. 
Events after the balance sheet
Events after the balance sheet are disclosed in note 30 to the consolidated financial statements. Anglo Asian Mining PLC Annual report and accounts 2009 13
Statement of Directors’ responsibility
The Directors are responsible for preparing the Directors’ Report and the 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: 
  select suitable accounting policies in accordance with IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and then apply 
them consistently; 
  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; 
  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact 
of particular transactions, other events and conditions on the entity’s financial position and financial performance;
  state whether they have been prepared in accordance with IFRS; and
  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 and of the profit and loss of the Company for that period. In preparing 
these financial statements, the Directors are required to: 
  select suitable accounting policies and then apply them consistently;
  make judgements and estimates that are reasonable and prudent;
  state whether they have been prepared in accordance with UK GAAP; and 
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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.
By order of the Board
Andrew Herbert
Company Secretary
27 May 2010
  14 Anglo Asian Mining PLC Annual report and accounts 2009
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 of 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 of 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 of 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.
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 2009 15
Independent auditors’ 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 2009 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 auditors’ 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 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.
Opinion on financial statements
In our opinion the Group financial statements:
  give a true and fair view of the state of the Group’s affairs as at 31 December 2009 and of its loss for the year then ended;
  have been properly prepared in accordance with IFRSs as adopted by the European Union; and
  have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the Group financial statements are prepared 
is consistent with the Group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
  certain disclosures of Directors’ remuneration specified by law are not made; or
  we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the parent company financial statements of Anglo Asian Mining PLC for the year ended 31 December 2009. 
Mirco Bardella (Senior statutory auditor)       
for and on behalf of Ernst & Young LLP , Statutory Auditor
London
27 May 2010
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.  16 Anglo Asian Mining PLC Annual report and accounts 2009
Consolidated income statement
For the year ended 31 December 2009
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 (Restated) 
      Notes US$ US$
Revenue      5 10,256,851  — 
Cost of sales       (8,403,928) —
Gross profit       1,852,923 —
Administrative expenses       (4,250,801) (4,526,090)
Write down of capitalised intangible assets     10 (5,773,180) —
Other operating expense      6 (290,674) —
Operating loss      7 (8,461,732) (4,526,090)
Finance income      5 808 54,656
Finance costs      11 (3,262,986) —
Loss before tax       (11,723,910) (4,471,434)
Income tax expense      12 — —
Loss for the period attributable to the equity holders of the parent    (11,723,910) (4,471,434)
Loss per share for the period attributable to the equity holders of the parent   
Basic and diluted (cents per share)     13 (11.28) (4.41)
The Group’s loss relates to continuing operations in both years.
Consolidated statement of comprehensive income
For the year ended 31 December 2009
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 (Restated) 
       US$ US$
Loss for the year       (11,723,910) (4,471,434)
Other comprehensive income         — —
Total comprehensive loss for the year      (11,723,910) (4,471,434)
Attributable to the equity holders of the parent     (11,723,910) (4,471,434) Anglo Asian Mining PLC Annual report and accounts 2009 17
Consolidated balance sheet
As at 31 December 2009
       As at As at 
      As at 31 December 1 January 
      31 December 2008  2008 
      2009 (Restated) (Restated) 
     Notes US$ US$ US$
Non-current assets     
Intangible assets     14 38,745,095 44,127,513 43,729,409 
Property, plant and equipment    15 48,298,659 35,057,769 7,492,689 
Non-current prepayments     16 79,200 509,794 — 
      87,122,954 79,695,076 51,222,098 
Current assets     
Trade and other receivables     18 3,836,685 1,474,063 192,164 
Inventories     19 10,276,024 — — 
Cash and cash equivalents     20 809,548 738,722 6,810,902 
      14,922,257 2,212,785 7,003,066 
Total assets      102,045,211 81,907,861 58,225,164 
Current liabilities     
Trade and other payables     21 (14,951,262) (11,370,718) (1,332,491) 
Interest-bearing loans and borrowings    22 (19,097,540) — — 
      (34,048,802) (11,370,718) (1,332,491) 
Net current liabilities      (19,126,545) (9,157,933) (5,670,575) 
Non-current liabilities     
Provision for rehabilitation     23 (1,530,978) — — 
Trade and other payables     22 — (1,312,537) — 
Interest-bearing loans and borrowings    22 (23,885,796) (16,084,353) — 
      (25,416,774) (17,396,890) — 
Total liabilities      (59,465,576) (28,767,608) (1,332,491) 
Net assets      42,579,635 53,140,253 56,892,673 
Equity     
Share capital     25 1,934,363 1,851,516 1,792,015 
Share premium account      31,939,385 30,911,013 30,387,514 
Share-based payment reserve       621,802 569,729 433,715 
Merger reserve      46,206,390 46,206,390 46,206,390 
Accumulated loss      (38,122,305) (26,398,395) (21,926,961) 
Total equity      42,579,635 53,140,253 56,892,673 
The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2010. They were signed on its behalf by:
Reza Vaziri
Chief Executive
  18 Anglo Asian Mining PLC Annual report and accounts 2009
Consolidated cash flow statement
For the year ended 31 December 2009
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 (Restated) 
      Notes US$ US$
Net cash outflow used in operating activities     26 (4,520,532) (412,209)
Investing activities   
Expenditure on property, plant and equipment and mine development    (15,733,989) (21,061,704)
Expenditure on intangible assets      (1,402,839) (258,670)
Interest received      5 808 54,656
Net cash used in investing activities      (17,136,020) (21,265,718)
Financing activities   
Proceeds from borrowings       26,898,983 16,084,353
Interest paid       (5,171,605) (478,606)
Net cash generated from financing activities      21,727,378 15,605,747
Net increase/(decrease) in cash and cash equivalents     70,826 (6,072,180)
Cash and cash equivalents at beginning of year    20 738,722 6,810,902
Cash and cash equivalents at end of year     20 809,548 738,722
  Anglo Asian Mining PLC Annual report and accounts 2009 19
Consolidated statement of changes in equity
For the year ended 31 December 2009
     Share-based    
   Share Share payment Merger Accumulated Total 
   capital premium reserve reserve loss equity 
  Notes US$ US$ US$ US$ US$ US$
At 1 January 2008    1,792,015 30,387,514 1,852,752 46,206,390 (23,345,998) 56,892,673
Changes from prior period error 3 — — (1,419,037) — 1,419,037 —
At 1 January 2008 (Restated)   1,792,015 30,387,514 433,715 46,206,390 (21,926,961) 56,892,673
Loss for the year   — — — — (4,471,434) (4,471,434)
Other comprehensive income   — — — — — —
Total comprehensive income   — — — — (4,471,434) (4,471,434)
Shares issued   59,501 523,499 — — — 583,000
Share-based payment charge for period 26 — — 136,014 — — 136,014
At 31 December 2008 (Restated)  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) 
Other comprehensive income   — — — — — —
Total comprehensive income   — — — — (11,723,910) (11,723,910) 
Shares issued   82,847 1,028,372 — — — 1,111,219
Share-based payment charge for period 26 — — 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 20 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements
For the year ended 31 December 2009
1. Going concern
The Directors’ assumptions over the projected gold and silver prices, discount rates, mine operating costs and levels of production from the Gedabek 
mine are crucial to Anglo Asian Mining PLC and its subsidiaries (the ‘Group’) meeting its forecast cash flows for the period to 30 June 2011. 
There is no longer a risk of delay in commencement of production as initial production commenced in July 2009, with the mine being classified 
as entering into commercial production from 1 July 2009. There still remains a risk that future production levels may be lower than anticipated 
due to unforeseen operational difficulties. 
However, the Directors remain confident in their projections and if production and pricing continues at the same levels the mine has exhibited 
since March 2010, the Group will either meet or exceed its forecast production targets for the period to 30 June 2011.
As highlighted in note 22 to the consolidated financial statements, the Group is reliant on debt financing from the International Bank of Azerbaijan 
to cover its day-to-day working capital requirements, however, this reliance has decreased since 2008 as a result of the Group commencing production 
of gold and silver during the year and becoming cash generative. Since the year end, the Group has renegotiated the terms of its debt with the 
International Bank of Azerbaijan and other Azerbaijani banks so that repayment commences from May 2010. 
After making enquiries, the Directors have formed a judgement, which assumes at the time of approving the consolidated financial statements, 
that there is a reasonable expectation that the Group can access adequate resources to continue in operation and remain in existence for the 
foreseeable future. These resources include the anticipated revenues from the projected gold, silver and copper production at Gedabek at the 
current strong prices, existing cash balances, existing debt facilities and the Group’s ability to raise further funds through either debt or equity 
should market prices for gold fall, production levels fall or be delayed or if operating costs increase. The current forecasts demonstrate that with 
the existing cash resources and the level of production and the sales price for the period expected, it will provide sufficient funds for the Group 
to meet its liabilities as they become due. 
The Board is aware of the difficulties involved in accurately forecasting mine operating costs, the price of gold and levels of production. If there 
are either cost overruns or reduced revenues then the Board will have to take steps to ensure that there is adequate funding for the 12 month 
period subsequent to the date of the approval of these consolidated financial statements. In the event of any such instances the Board has sufficient 
options available to preserve cash including major shareholders on the Board having confirmed that they would be willing to provide additional 
funding in such an event, deferral of discretionary capital expenditure and exploration expenditure and if required, the Board also considers that 
extended working capital facilities could be negotiated with Bank Standard JSC.
For these reasons the Directors continue to adopt the going concern basis of preparing the consolidated financial statements.
2. General information
Anglo Asian Mining PLC is a public limited company incorporated in the UK under the Companies Act 2006. The address of the registered office 
and principal place of business are given on the inside back cover. 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 27 May 2010. 
These consolidated financial statements, for the year ended 31 December 2009 and 31 December 2008, are prepared in accordance with the 
International Financial Reporting Standards as adopted by the EU (‘IFRS’). 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. Anglo Asian Mining PLC Annual report and accounts 2009 21
3. Significant accounting policies continued
Reclassifications and restatements 
Certain 2008 amounts were reclassified to conform to the presentation of the 2009 consolidated financial statements. These reclassifications 
are summarised below: 
  Exploration and evaluation assets on Gedabek mine of $6,250,641 were reclassified from ‘Intangible assets’ to ‘Property, plant and equipment’. 
  Prepayments for non-current assets purchases of $509,794 were reclassified from ‘Trade and other receivables’ to ‘Non-current prepayments’. 
  Payment for land compensation in relation to Gedabek mine of $177,637 and $74,713 were reclassified from ‘Trade and other receivables’ 
and ‘Property, plant and equipment’ respectively to ‘Intangible assets’.
  Payment for the purchase and installation of accounting software of $45,770 was reclassified from ‘Property, plant and equipment’ 
to ‘Intangible assets’. 
  Letters of credit with a due date of over one year of $1,312,537 were reclassified from ‘Interest-bearing loans and borrowings’ to ‘Long-term 
trade and other payables’ and accordingly the statement of cash flows was reclassified from financing to operating activities.
Certain 2007 amounts were reclassified to conform to the presentation of 2009 consolidated financial statements. These reclassifications are 
summarised below:
  Exploration and evaluation assets on Gedabek mine of $6,250,641 were reclassified from ‘Intangible assets’ to ‘Property, plant and equipment’. 
  Payment for land compensation in relation to Gedabek mine of $252,350 was reclassified from ‘Trade and other receivables’ to ‘Intangible assets’. 
Correction of prior period error
Forfeited share-based reserve transfers related to 2005 through 2007 for the total amount of $1,419,037 were not recorded in the Group’s income 
statement as at 1 January 2008. Out of this amount $666,926 was recorded in 2008 as a direct charge to the accumulated loss. The Group restated 
its comparative 2008 figures to correct this error and record the full amount as of 1 January 2008 as appropriate. The effect of the restatement 
on the share-based payment reserve and accumulated loss are as follows:
     Share-based  Share-based Accumulated 
     payment reserve payment loss Accumulated 
     as previously reserve as previously loss 
     stated as restated stated as restated
At 1 January 2008     1,852,752 433,715 (23,345,998) (21,926,961)
At 31 December 2008     1,321,840 569,729 (27,150,506) (26,398,395)
Changes in accounting policies, new standards and interpretations not applied
The Group has adopted the following standards and interpretations from 1 January 2009:
IFRS 2 ‘Share-based Payment’ (Revised)
The IASB issued an amendment to IFRS 2 which clarifies the definition of vesting conditions and prescribes the treatment for an award that is cancelled. 
The Group adopted this amendment as of 1 January 2009. It did not have an impact on the financial position or performance of the Group.
The IASB issued an amendment to IFRS 2 that clarified the scope and the accounting for group cash-settled share-based payment transactions. 
The Group adopted this amendment as of 1 January 2009. It did not have an impact on the financial position or performance of the Group.
IFRS 3 ‘Business Combinations’ (Revised) and IAS 27 ‘Consolidated and Separate Financial Statements’ (Amended)
The Group adopted the revised standards from 1 January 2009. IFRS 3 (Revised) introduces significant changes in the accounting for business 
combinations occurring after this date. Changes affect the valuation of non-controlling interest, the accounting for transaction costs, the initial 
recognition and subsequent measurement of a contingent consideration and business combinations achieved in stages. It did not have an 
impact on the financial position or performance of the Group. 
IAS 27 (Amended) 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. Therefore, such transactions will no longer give rise to goodwill, nor will it give rise to a gain or loss. Furthermore, 
the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. It did not have 
an impact on the financial position or performance of the Group.
IFRS 7 ‘Financial Instruments: Disclosures’
The amended standard requires additional disclosures about fair value measurement and liquidity risk. Fair value measurements related to items 
recorded at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by class, for all financial instruments recognised 
at fair value. In addition, a reconciliation between the beginning and ending balance for level 3 fair value measurements is now required, as well 
as significant transfers between levels in the fair value hierarchy. The amendments also clarify the requirements for liquidity risk disclosures with 
respect to derivative transactions and assets used for liquidity management. The liquidity risk disclosures are not significantly impacted by the 
amendments and are presented in note 24.
IFRS 8 ‘Operating Segments’
IFRS 8 replaced IAS 14 ‘Segment Reporting’ upon its effective date. The Group concluded that the operating segments determined in accordance 
with IFRS 8 are the same as the business segments previously identified under IAS 14. IFRS 8 disclosures are shown in note 4. 22 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
3. Significant accounting policies continued
Changes in accounting policies, new standards and interpretations not applied continued 
IAS 1 ‘Revised Presentation of Financial Statements’
The revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions 
with owners, with non-owner changes in equity presented in a reconciliation of each component of equity. In addition, the standard introduces 
the statement of comprehensive income: it presents all items of recognised income and expense, either in one single statement, or in two linked 
statements. The Group has elected to present two statements.
IAS 23 ‘Borrowing Costs’ (Revised)
The revised IAS 23 requires capitalisation of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying 
asset. The Group’s previous policy was to capitalise borrowing costs that were directly attributable to the acquisition, construction or production 
of a qualifying asset, so it did not have an impact on the financial position or performance of the Group. Borrowing costs and capitalised portion 
thereof are disclosed in note 11.
Improvements to IFRSs
In May 2008 and April 2009 the IASB issued an omnibus of amendments to its standards, primarily with a view to removing inconsistencies and 
clarifying wording. There are separate transitional provisions for each standard. The adoption of the following amendments resulted in changes 
to accounting policies but did not have any impact on the financial position or performance of the Group:
IAS 32 ‘Financial Instruments: Presentation’ and IAS 1 ‘Puttable Financial Instruments and Obligations Arising on Liquidation’
IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’
IFRIC 9 ‘Reassessment of Embedded Derivatives’ and IAS 39 ‘Financial Instruments: Recognition and Measurement’
At the date of authorisation of these consolidated financial statements, the following Standards and Interpretations which have not been applied 
in these consolidated financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
Standard or interpretation  Effective date
IFRS 2 Amendments to IFRS 2 Share-based Payments: Group  January 2010
 Cash-settled share-based payment transactions
IFRS 9 Financial Instruments (Phase 1 of new standard to replace IAS 39) January 2013
IAS 24 Amendments to IAS 24 – Related Party Disclosures January 2011 
IAS 32 Amendments to IAS 32 – Classifications of Rights Issues Denominated in Foreign Currency February 2010
IAS 39 Amendment to IAS 39 – Eligible Hedged Items July 2009
IFRIC 17 Distributions of Non-cash Assets to Owners July 2009
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, goodwill, 
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 statement of comprehensive income in the period when the new information becomes available.
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 2009 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: 
 the level of capital expenditure compared to the construction cost estimates; 
 completion of a reasonable period of testing of the mine plant and equipment; 
 ability to produce metal in saleable form (within specifications); and 
 ability to sustain ongoing production of metal.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are 
either regarded as inventory or expensed, except for costs that qualify for capitalisation relating to mining asset additions or improvements, 
underground mine development or mineable reserve development. 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 statement of 
financial position by either increasing or decreasing the rehabilitation liability and rehabilitation asset if the initial estimate was originally recognised 
as part of an asset measured in accordance with IAS 16 ‘Property, Plant and Equipment’. Any reduction in the rehabilitation liability and therefore 
any deduction from the rehabilitation asset may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken 
immediately to the 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 income statement. Also, rehabilitation obligations 
that arose as a result of the production phase of a mine should be expensed as incurred. 
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 are known or can be reasonably estimated. 
Interest revenue 
Interest revenue is recognised as it accrues, using the effective interest rate method. 
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. 
All other leases are classified as operating leases.
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.
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. 24 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
3. Significant accounting policies continued
Foreign currencies continued
Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items, are included in the income 
statement for the period. 
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated at 
exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period, 
unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange 
differences arising, if any, are recognised in other comprehensive income and accumulated in a separate component of equity – Group translation 
reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of.
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 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 timing 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 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 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 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 income statement in the period they are incurred. 
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’. Development expenditure is net of proceeds from all but 
the incidental sale of ore extracted during the development phase. After production starts, all assets included in ‘Assets under construction’ are 
transferred to ‘Producing mines’.
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. Anglo Asian Mining PLC Annual report and accounts 2009 25
3. Significant accounting policies continued
Intangible assets continued
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 
Upon completion of mine construction, the assets are transferred into property, plant and equipment or producing mines. Items of property, 
plant and equipment and producing mines are stated at cost, less accumulated depreciation and accumulated impairment losses. 
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. 
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: 
 Temporary buildings – 8 years 
 Plant and equipment –  8 years 
 Motor vehicles – 4 years 
 Office equipment – 4 years 
 Leasehold improvements – 8 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 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. 26 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
3. Significant accounting policies continued
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 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 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/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 goodwill or indefinite life intangibles are not reversed for subsequent increases in its recoverable amount. 
Provisions
General
Provisions are recognised when (a), the Group has a present obligation (legal or constructive) as a result of a past event, and (b), it is probable 
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the 
amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, 
where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised 
as a finance cost.
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 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 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 and 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.  Anglo Asian Mining PLC Annual report and accounts 2009 27
3. Significant accounting policies continued
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings. 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 and 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 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.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, 
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the 
assets and settle the liabilities simultaneously.
Fair value of financial instruments
The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices 
or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.
For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques 
may include using recent arm’s length market transactions; reference to the current fair value of another instrument that is substantially the 
same; discounted cash flow analysis; or other valuation models.
An analysis of fair values of financial instruments and further details as to how they are measured are provided in note 24.
Non-current prepayments
Advances made to suppliers for fixed asset purchases are recognised as non-current prepayments until the time when fixed assets are supplied. 
Inventories 
Metal in circuit consists of in-circuit material at properties with milling or processing operations and doré awaiting refinement, all valued at the 
lower of average cost and net realisable value. In-process inventory costs consist of direct production costs including mining, crushing and processing; 
site administration costs; and allocated indirect costs, including depreciation, depletion and amortisation of producing mines and mining interests. 
Ore stockpiles consist of stockpiled ore, ore on surface, 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 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.  28 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
3. Significant accounting policies continued
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 the Republic of 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 do not 
segment the business when evaluating its performance.
5. Revenue
The Group’s revenue consists of bullion sold to a third-party customer (2008: $nil). Interest income consists of interest earned on cash accounts 
and short-term deposits (2008: $54,656).
6. Other operating expenses
Other operating expenses consist of metal processing costs, profit/loss on disposal of property, plant and equipment, depreciation of rehabilitation 
provision, foreign currency exchange net loss, and miscellaneous operating expenses.
7. Operating loss
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
      Notes US$ US$
Operating loss is stated after charging:   
Depreciation on property, plant and equipment – owned     15 3,825,655 636,477
Amortisation of mining rights and other intangible assets    14 1,310,505 —
Employee benefits and expenses     9 5,846,590 1,959,486
Impairment of mining rights      10,14 5,000,000 — 
Impairment of evaluation and exploration expenditure    10,14 773,180 —
Net foreign currency exchange loss      223,280 49,342
Loss on disposal of fixed assets     15 167,025 1,829
Expenses classified as inventories     19 (8,799,906) —
The analysis of auditors’ remuneration is as follows:   
Fees payable to the Group’s auditors for the audit of the Group’s annual accounts   66,700 107,050
The audit of the Group’s subsidiaries pursuant to legislation      78,300 4,000
Total audit fees       145,000 111,050
Tax services       — 28,305
Total non-audit services       13,000 28,305
The audit fees for the parent company were $15,000 (2008: $22,210). Anglo Asian Mining PLC Annual report and accounts 2009 29
8. Remuneration of Directors 
  Salary Bonus Consultancy Fees Pension Benefits Total 
Year ended 31 December 2009  US$ US$ US$ 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 $10,962 in relation to the services of Ross Bhappu as a Non-executive Director for the period ended 31 December 2009 are payable to RCF Management LLC, 
a company related to but not controlled by Ross Bhappu. Ross Bhappu resigned on 23 July 2009 and fees are no longer payable to him or RCF Management LLC. 
Directors’ fees and consultancy fees amounting to $111,802 included above were paid in shares.
  Salary Bonus Consultancy Fees Pension Benefits Total 
Year ended 31 December 2008  US$ US$ US$ US$ US$ US$ US$
Ross Bhappu*  — — — — — — —
Tim Eggar**  — — — 22,683 — — 22,683
Gordon Lewis
†
  251,456 110,110 — — 20,646 53,004 435,216
Richard Round   48,716 — — 16,047 1,888 — 66,651
John Sununu  — — — 33,033 — — 33,033
Khosrow Zamani  — — — 91,758 — — 91,758
Reza Vaziri  — — 286,286 25,692 — — 311,978
Total  300,172 110,110 286,286 189,213 22,534 53,004 961,319
 *  Fees of $25,692 in relation to the services of Ross Bhappu as a Non-executive Director for the period ended 31 December 2008 are payable to RCF Management LLC, 
a company related to but not controlled by Ross Bhappu.
** The fees payable to Tim Eggar have terminated from 23 July 2008, the date of his resignation. 
 † Pension fees payable to Gordon Lewis were accrued but not paid in to a scheme. Mr Lewis resigned from his position on 30 September 2008.
Directors’ fees, pensions and bonuses amounting to $443,382 included above were paid in shares.
9. Staff numbers and costs
The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       Number Number
Management and administration      36 35
Processing and exploration       74 37
Mine operations       195 171
Total       305 243
The aggregate payroll costs of these persons were as follows:
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Wages and salaries       4,719,945 3,067,930
Share-based payments        52,073 136,014
Social security costs       1,074,572 547,412
Pension costs       — 48,575
       5,846,590 3,799,931
Less: salary costs capitalised as exploration, evaluation development, fixed asset and inventory expenditure  (2,381,091) (1,840,445)
Total employee costs       3,465,499 1,959,486 30 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
9. Staff numbers and costs continued
Remuneration of key management personnel
The remuneration of the Directors, who are the only key management personnel of the Group, is set out below in aggregate for each of the 
categories specified in IAS 24 ‘Related Party Disclosures’:
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Short-term employee benefits       486,247 938,785
Post-employment benefits       — 22,534
Share-based payment       25,890 122,850
       512,137 1,084,169
10. Write down of capitalised intangible assets
During the year there have been impairment charges taken against capitalised intangible assets. Analysis of these expenses is provided below:
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       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 the year, the Group has concluded that it is unlikely to realise value at Sharkadara, Misdag, Shalala and Diakchay mining properties within the Ordubad contract area. 
The Group has therefore taken 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 $5 million of mining rights for the Ordubad contract area and concluded that it is unlikely to realise value at any 
of the Ordubad properties. Therefore impairment was recognised for the full amount as of 31 December 2009.
11. Finance costs
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Bank interest       4,649,094 825,910
Finance charges on letters of credit and accretion expenses      245,781 —
Interest capitalised during period      (1,631,889) (825,910)
Total finance cost       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 
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 (2008: 15%), interest on the loan from Reza Vaziri is at 8% per annum (2008: nil), interest on the Bank Standard JSC credit 
line is at 19% (2008: nil) and interest on the loan from Pasha Bank is at 17% (2008: nil). The credit facilities were provided for the purpose of 
constructing and developing the Gedabek gold mine 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). Anglo Asian Mining PLC Annual report and accounts 2009 31
12. Taxation
Corporation tax is calculated at 28.0% (which represents a weighted average for the year) (2008: 28.5%) of the estimated assessable profit for 
the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The Group tax charge for the year can 
be reconciled to the loss per the income statement as follows:
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Loss before tax       (11,723,910) (4,471,434)
Tax at the UK corporation tax rate of 28.0% (2008: 28.5%)     3,282,695 1,274,359
Expenses not deductible for tax purposes      (2,951,790) (126,103)
Unrecognised tax losses       (635,979) (1,148,256)
Total tax       —  —
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 
is charged or credited in the 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 and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when 
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.
At the balance sheet date, the Group has unused tax losses of $43,413,647 (2008: losses of $18,220,551) available for offset against future profits. 
No deferred tax asset has been recognised in respect of such losses due to the unpredictability of future profit streams. Unused tax losses may be 
carried forward indefinitely.
Factors that may affect future current and total tax charges
The unrecognised deferred tax asset may affect the future current and total tax charges if the recoverability of the deferred tax assets is considered 
likely in future periods.
13. Loss per share
The statutory loss per share of 11.28 cents (2008: loss per share of 4.41 cents) has been based on a weighted average number of shares in issue 
of 103,977,437 (2008: 101,280,008) and a loss of $11,723,910 (2008: loss of $4,471,434).
Basic and dilutive Earnings Per Share are the same because the only outstanding share options are anti-dilutive as the Group has made a loss. 32 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
14. Intangible assets
Evaluation and exploration assets
       
     Gedabek Gosha Ordubad Total 
     US$ US$ US$ US$
Cost       
As at 1 January 2008     — 453,870 1,097,927 1,551,797
Additions     160,328 155,052 36,954 352,334
As at 31 December 2008     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
Mining rights and other intangible assets   
       Other  
      Mining  intangible 
      rights assets Total 
      US$ US$ US$
Cost       
As at 1 January 2008 (Restated)     41,925,262 252,350 42,177,612
Additions      — 45,770 45,770
As at 31 December 2008 (Restated)     41,925,262 298,120 42,223,382
Provision for impairment      (5,000,000) — (5,000,000)
Additions      — 16,125 16,125
Amortisation      (1,293,360) (17,145) (1,310,505)
As at 31 December 2009      35,631,902 297,100 35,929,002
Total intangible assets   
As at 31 December 2008 (Restated)       44,127,513
As at 31 December 2009        38,745,095
Mining rights and other intangible assets started amortisation in 2009, therefore amortisation charge and accumulated amortisation balances 
are nil for 2008.  Anglo Asian Mining PLC Annual report and accounts 2009 33
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 2008  
(Restated) 299,807 289,773 — 128,142 406,463 437,708 6,326,587 7,888,480
Development – Gedabek — — — — — — 3,766,605 3,766,605
Capitalisation of interest — — — — — — 825,910 825,910
Additions 2,723 3,359,228 — 260,201 613,072 649 19,374,998 23,610,871
Disposals — — — — (4,850) — — (4,850)
As at 31 December 2008  
(Restated) 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
Accumulated depreciation         
and impairment        
As at 1 January 2008  
(Restated) (33,878) (55,925) — (62,318) (149,573) (94,097) — (395,791)
Charge for year (80,887) (251,659) — (53,948) (147,740) (102,243) — (636,477)
Depreciation on disposals — — — — 3,021 — — 3,021
As at 31 December 2008  
(Restated) (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)
Carrying amount        
As at 31 December 2008  
(Restated) 187,765 3,341,417 — 272,077 720,393 242,017 30,294,100 35,057,769
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
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. 
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 6 in the Company’s financial statements. 34 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
18. Trade and other receivables
       As at As at  
       31 December 31 December 
       2009 2008 (Restated) 
       US$ US$
Receivable on behalf of the Government of Azerbaijan     1,589,009 —
VAT refund due       1,026,609 629,945
Trade receivables       804,750 —
Prepayments       279,167 302,739
Advances       89,649 541,379
Other receivables       47,501 —
       3,836,685 1,474,063
The carrying amount of trade and other receivables approximates to their fair value.
The VAT refund due at 31 December 2009 and 2008 relates to VAT paid on purchases made in the second half of 2008 and 2007, respectively. 
The Group has a trade receivable amount of $804,750 which relates to its bullion sales. The entire trade receivable amount is with the Group’s 
one customer, its refiner, MKS Finance SA.
The amount of $1,589,009 receivable on behalf of the Government of Azerbaijan relates to bullion held in the account of the Group for which 
the Government of Azerbaijan is the beneficial holder. The Group holds the Government’s share of the product from its mining activities and 
from time to time transfers that product to the Government of Azerbaijan. A corresponding liability to the Government of Azerbaijan is included 
in trade and other payables shown in note 21.
The Group does not consider any trade and other receivables as past due or impaired.
19. Inventories
       As at As at  
       31 December 31 December 
       2009 2008 
       US$ US$
At cost  
Finished goods – bullion       143,113 —
Metal in circuit       6,887,210 —
Ore stockpiles       1,769,583 —
Spare parts and consumables        1,476,118 —
       10,276,024 —
20. Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group 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.
21. Trade and other payables 
       As at As at  
       31 December 31 December 
       2009 2008 
       US$ US$
Trade creditors        8,690,623 4,453,373
Gold inventory held on behalf of the Government of Azerbaijan    1,589,009 —
Other payables and accruals       4,671,630 6,917,345
       14,951,262 11,370,718
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 139 (2008: 35). The Directors consider that the carrying amount of trade and other payables 
approximates to their fair value.
Letters of credit totalling $3,161,581 were negotiated with several European banks and guaranteed by the International Bank of Azerbaijan 
at 31 December 2009 to finance fixed asset additions currently due within trade creditors. Anglo Asian Mining PLC Annual report and accounts 2009 35
22. Interest-bearing loans and borrowings
       As at As at  
       31 December 31 December 
       2009 2008 (Restated) 
       US$ US$
Loans from IBA       40,969,133 17,396,890
Loan from Bank Standard JSC       410,529 —
Loan from Pasha Bank       450,000 —
Loan from Reza Vaziri       995,040 —
Advance from Reza Vaziri – non-interest bearing     158,634 —
Total interest-bearing loans and borrowings      42,983,336 17,396,890
Loans repayable in less than one year      19,097,540 —
Loans repayable in more than one year       23,885,796 16,084,353
Trade and other payables due in more than one year     — 1,312,537
Total more than one year       23,885,796 17,396,890
In addition to the $25.0 million credit facility obtained with the International Bank of Azerbaijan during 2008, the Group obtained three further 
loans from the International Bank of Azerbaijan for the value of $9.4 million, $6.5 million and $3.0 million giving an aggregate of $18.9 million. 
All loans carry an interest rate of 15% per annum. The loan of $9.4 million is to be repaid in nine quarterly instalments (first eight tranches of 
$1,044,000 and a ninth tranche of $1,048,000) with the first instalment due in March 2011 and then every three months to March 2013. The loan 
of $6.5 million is to be repaid in 13 instalments of $500,000 with the first instalment due in June 2010 and then every three months until June 2013. 
The loan of $3.0 million is to be repaid in six monthly instalments of $500,000 beginning from April 2010. There is no penalty for early repayment 
of any of the loan from the International Bank of Azerbaijan.
The loan from Pasha Bank is secured by a floating charge over certain of the Group’s assets (equipment with net book value of $540,000 
as of 31 December 2009).
Subsequent to the year-end date, the repayment terms of three of the loans from the International Bank of Azerbaijan have been revised 
(see note 30).
The Group has obtained a US$1.0 million unsecured loan with its CEO, Mr Reza Vaziri, to provide additional working capital for the Group. 
Under the terms of the loan agreement, an all inclusive annual interest rate of 8% per annum will be applied. 20% of initial net gold sales 
will be used to service repayment of this loan with the latest date for the outstanding balance to be paid in full being 7 February 2010. 
Subsequent to the year-end date, the repayment terms of this loan has been revised (see note 30).
The Group obtained a credit line from Bank Standard JSC for an amount of $1.0 million repayable on 11 December 2010. Interest is payable 
on the credit line at 19% per annum.
The Group has obtained a loan from Pasha Bank for $450,000 for the purposes of purchasing two mining fleet vehicles. Interest is payable at 17%. 
The loan is to be repayable in instalments with the last instalment payable in December 2010.
As at 31 December 2009 the Group had undrawn facilities of $589,471 (2008: $5,663,778) after consideration of the letters of credit which 
are guaranteed by the International Bank of Azerbaijan.
23. Provision for rehabilitation
        US$
Cost       
As at 1 January 2009        — 
Capitalised as mine development       1,504,647
Unwinding of discount        26,331
As at 31 December 2009        1,530,978
Current        —
Non-current        1,530,978
As at 31 December 2009        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 ($3,130,000 undiscounted liability, discounted using a risk free rate of 3.5%).
Expenditure on restoration and rehabilitation is expected to commence in 2015. 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. 36 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
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 2009 and 2008 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 2009 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 on-going 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 
       2009 2008 (Restated) 
       US$ US$
Interest-bearing loans and borrowings (note 22)     42,983,336 17,396,890
Trade and other payables (note 21)      14,951,262 11,370,719
Less cash and cash equivalents (note 20)      (809,548) (738,722)
Net debt       57,125,050 28,028,887
Equity       42,579,635 53,140,253
Capital and net debt       99,704,685 81,169,140
Gearing ratio       57% 35%
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 also has cash and cash equivalents which earn 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 2009. Anglo Asian Mining PLC Annual report and accounts 2009 37
24. Financial instruments continued
Interest rate risk profile of financial assets
The following table sets out the carrying amount, by maturity of the Group’s financial instruments that are exposed to interest rate risk:
Year ended 31 December 2009
       More  
      Within than  
Floating rate      1 year 1 year Total
Cash and cash equivalents      809,548 — 809,548
Year ended 31 December 2008
       More  
      Within than  
Floating rate      1 year 1 year Total
Cash and cash equivalents      738,722 — 738,722
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 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
* Subsequent to year end the International Bank of Azerbaijan revised the repayment terms to defer repayment from the original dates. Refer to note 30.
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.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s loss for the year ended 31 December 2009 
would decrease/increase by $6,369 (2008: decrease/increase by $12,180). This is attributable to the Group’s exposure to interest rates on its 
floating rate letters of credit.
All borrowings have been made at fixed interest rates. 
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 2009
    Less than 3 to 12 1 to 5 
   On demand 3 months months years > 5 years Total 
   $ $ $ $ $ $
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 38 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
24. Financial instruments continued
Liquidity risk management continued
Year ended 31 December 2008
    Less than 3 to 12 1 to 5 
   On demand 3 months months years > 5 years Total 
   $ $ $ $ $ $
Interest-bearing loans and borrowings  — 603,163 1,809,490 17,780,892 — 20,193,545
Trade and other payables   1,171,150 8,260,236 1,939,332 1,312,537 — 12,683,255
Other liabilities   — — — — — —
   1,171,150 8,863,399 3,748,822 19,093,429 — 32,876,800
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
     2009 2008 2009 2008 
     US$ US$ US$ US$
UK Sterling     338,612 108,350 17,577 52,543
Azerbaijan Manats     4,280,846 1,587,612 1,240,239 1,000,944
Other     143,767 120,842 19,654 37,857
Foreign currency sensitivity analysis
The Group is mainly exposed to the currency of United Kingdom (UK Sterling) and the currency of Azerbaijan (Azerbaijan Manats).
The following table details the Group’s sensitivity to a 20% (2008: 20%) increase and decrease in the US Dollar against the relevant foreign currencies. 
20% (2008: 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% (2008: 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% (2008: 20%) against the relevant currency. For a 20% 
(2008: 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
     2009 2008 2009 2008 
     US$ US$ US$ US$
Profit     64,207 11,161 608,121 117,334
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 $1,020,787 and a 10% increase in gold prices would result in an increase 
in profit of $1,020,787. A 10% decrease in silver price would result in a reduction in profit of $4,898 and a 10% increase in silver prices would 
result in an increase in profit of $4,898. Anglo Asian Mining PLC Annual report and accounts 2009 39
25. Equity
       As at As at  
       31 December 31 December 
       2009 2008 
       £ £
Authorised:  
600,000,000 ordinary shares of 1 pence each      6,000,000 6,000,000
       US$ US$
Issued and fully paid:  
108,945,949 ordinary shares of 1 pence each (2008: 102,721,921 ordinary shares of 1 pence each)  1,934,363 1,851,516
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 2008       99,621,880 1,792,015
Issued to Directors in lieu of salary, fees and expenses     2,769,242 52,850
Issued to a trade creditor in lieu of cash payment     330,799 6,651
At 31 December 2008       102,721,921 1,851,516
Issued to Directors 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
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.  40 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
26. Notes to the cash flow statement
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Loss before tax       (11,723,910) (4,471,434)
Adjustments for:  
Finance income (note 5)       (808) (54,656)
Finance costs (note 11)       3,262,986 —
Depreciation of property, plant and equipment (note 15)     3,825,655 636,477
Amortisation of mining rights and other intangible assets (note 14)    1,310,505 —
Loss on disposal of property, plant and equipment (note 7)     167,025 —
Share-based payment expense (note 9)      52,073 136,014
Shares issued in exchange for salaries and fees      1,111,220 583,000
Impairment of evaluation and exploration expenditure (note 14)    773,180 —
Impairment of mining rights (note 14)      5,000,000 —
Operating cash flows before movements in working capital     3,777,926 (3,170,599)
Increase in trade and other receivables      (2,362,624) (1,281,899)
Increase in inventories       (10,276,024) —
Increase in trade and other payables      4,340,190 4,040,289
Cash used in operations       (4,520,532) (412,209)
Income taxes paid       —  — 
Net cash used in operating activities      (4,520,532) (412,209)
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.
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:
     2009  2008
      Weighted  Weighted 
     Number of average Number of average 
     share exercise price share exercise price 
     options Pence options Pence
Outstanding at beginning of year    4,610,152 23 8,174,953 48
Granted during the year     150,000 12 2,050,000 5
Lapsed during the year     — — (1,983,436) 77
Forfeited during the year     (183,468) 43 (3,631,365) 35
Exercised during the year     (350,000) 5 — —
Outstanding at 31 December     4,226,684 23 4,610,152 23
Exercisable at 31 December     3,093,351 29 1,967,045 42
The options outstanding at 31 December 2009 had a weighted average exercise price of 23 pence (ranging from 4.75 pence to 77 pence) and 
a weighted average remaining contractual life of eight years. 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 ($28,242). In 2008 options were granted on 31 July 
and 2 December. The aggregate of the estimated fair values of the options granted on those dates is £38,185 ($76,840). Anglo Asian Mining PLC Annual report and accounts 2009 41
27. Share-based payments continued
Equity-settled share options continued
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.
Granted on 1 August 2008 
Weighted average share price        £0.09
Weighted average exercise price       £0.09
Expected volatility        49%
Expected life        2 years
Risk free rate        4.75%
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 1 August 2008 is £0.03.
Granted on 4 December 2008 
Weighted average share price        £0.05
Weighted average exercise price       £0.05
Expected volatility        63%
Expected life        2 years
Risk free rate        4.25%
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 4 December 2008 is £0.02.
Total share-based payment expense recognised by the Group
The Group recognised total expenses of $52,073 and $136,014 related to equity-settled share-based payment transactions in 2009 and 2008 respectively.
The cumulative amount recognised in equity relating to share-based payments at the balance sheet date was $621,802 (2008: $1,321,840).
28. Contingencies and commitments
The Group undertakes its mining operations in the Azerbaijan Republic 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’), fully-owned subsidiary of the Company, with regards to exploration and development programme, preparation and 
timely submission of reports to the Government, compliance with environmental and ecological requirements, etc. The Directors believe that RVIG 
is in compliance with the requirements of the PSA. Exploration period on Ordubad and Gosha expires in April 2011, when the Group has to announce 
discovery or release the contract areas to the Government. The mining licence on Gedabek expires in March 2022.
Environmental liability – RVIG is 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 2009.
There were no capital commitments at 31 December 2009. 42 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the consolidated financial statements continued
For the year ended 31 December 2009
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 2009 and 2008, 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 $91,598 
(2008: $89,438).
b)  Shares issued to Directors are disclosed in the Directors’ Report.
c) During the year $244,285 (2008: $286,286) was paid to Mr Reza Vaziri for consultancy services.
d)  Mr Reza Vaziri provided a loan to the Group in the amount of $998,663 (bearing 8% interest) and a non-interest bearing advance 
in the amount of $458,634, of which $300,000 was settled by share issuance.
e) During the year $23,918 of interest was accrued on the loan of $998,663 from Mr Reza Vaziri.
30. Events after the balance sheet date
The following subsequent events relate to the period from 31 December 2009 to the date of approval of the consolidated financial statements 
on 27 May 2009.
On 11 January 2010 the Company issued 604,188 ordinary shares in lieu of Directors’ salaries. The shares were issued based on the closing share 
price on 31 December 2009 of 9 pence. 
On 8 March 2010 the Company issued 66,667 ordinary shares to a creditor in lieu of payment of an invoice.
On 31 March 2010, the Company agreed with Mr Reza Vaziri, a Director of the Company, to reschedule the repayment of the outstanding 
principal amount of the loan from Mr Vaziri to 30 November 2010. 
The Group agreed with the International Bank of Azerbaijan to reschedule loan repayments on three of its loans to May 2010. The table below 
shows the repayment schedule before and after the loan repayment schedule agreement:
    2010 2011 2012 2013 Total 
    US$ US$ US$ US$ US$
Repayment schedule for IBA loans as at 31 December 2009  17,083,337 18,592,663 6,176,000 2,048,000 43,900,000
Impact of agreement to reschedule loan repayments  (8,416,665) (3,583,335) 12,000,000 — —
Repayment schedule for IBA loans as at 20 May 2010   8,666,672 15,009,328 18,176,000 2,048,000 43,900,000
  Anglo Asian Mining PLC Annual report and accounts 2009 43
Independent auditors’ report
To the members of Anglo Asian Mining PLC
We have audited the parent company financial statements of Anglo Asian Mining PLC for the year ended 31 December 2009 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 auditors’ 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 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.
Opinion on financial statements
In our opinion the parent company financial statements:
 give a true and fair view of the state of the Company’s affairs as at 31 December 2009;
 have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
 have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent 
with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 adequate accounting records have not been kept by the parent company; 
 the parent company financial statements are not in agreement with the accounting records and returns; 
 certain disclosures of Directors’ remuneration specified by law are not made; 
 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 2009.
        
Mirco Bardella (Senior statutory auditor)       
for and on behalf of Ernst & Young LLP , Statutory Auditor
London
27 May 2010
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.  44 Anglo Asian Mining PLC Annual report and accounts 2009
Company balance sheet
As at 31 December 2009
        2008 
       2009  (Restated)  
      Notes US$ US$
Non-current assets    
Tangible assets      3 62,044 45,972 
Investments      4 1,325,007 1,325,007 
       1,387,051 1,370,979 
Current assets    
Debtors – amounts falling due within one year     6 26,186,905 24,537,980 
Cash at bank and in hand      7 33,747 379,252 
       26,220,652 24,917,232 
Trade creditors and accruals      8 (3,039,880) (1,440,194) 
Net current assets       23,180,772 23,477,038 
Net assets        24,567,823 24,848,017 
Share capital and reserves    
Called up share capital      10,11 1,934,363 1,851,516 
Share premium account      11 31,939,385 30,911,013 
Accumulated loss      11 (9,305,925) (7,914,512) 
Capital employed       24,567,823 24,848,017 
These financial statements were approved by the Board of Directors on 27 May 2010 and were signed on its behalf by:
Reza Vaziri
Chief Executive
  Anglo Asian Mining PLC Annual report and accounts 2009 45
Notes to the Company financial statements
For the year ended 31 December 2009
1. Significant accounting policies and going concern
1a. Going concern
For the reasons set out in note 1 to the consolidated financial statements, 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 27 May 2010.
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.
Reclassification 
A 2008 amount was reclassified to conform to the presentation of 2009 consolidated financial statements. This reclassification is summarised below: 
 Payment for a movable laboratory of $154,615 was reclassified from ‘Tangible assets’ to ‘Debtors – amount falling due in one year’.
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:
Office and computer equipment – straight line over 4 years
Software – straight line over 3 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 $1,443,486 (2008: $1,478,769). 46 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the Company financial statements continued
For the year ended 31 December 2009
3. Tangible assets
        Office 
        equipment 
        US$
Cost 
As at 1 January 2009        54,567
Additions        25,679
As at 31 December 2009        80,246
Accumulated depreciation 
As at 1 January 2009        (8,595)
Charge for year        (9,607)
As at 31 December 2009        (18,202)
Net book value 
As at 31 December 2008        45,972
As at 31 December 2009        62,044
4. Investments
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       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 2009 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 
       2009 2008 (Restated) 
       US$ US$
Amounts falling due within one year  
Prepayments       16,963 85,877
HMRC       3,858 1,001
Amounts owed by subsidiary undertakings      26,119,461 24,451,102
Other debtors       46,623 —
       26,186,905 24,537,980 Anglo Asian Mining PLC Annual report and accounts 2009 47
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.
8. Creditors
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
Amounts falling due within one year  
Trade creditors       179,684 99,514
Loan from Director       998,663 —
HMRC       5,165 —
Accruals       1,856,368 1,340,680
       3,039,880 1,440,194
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 scale up production towards full capacity. The loan has an interest rate of 8% per annum 
and is to be paid back from 20% of net gold sales with the latest date for the outstanding balance to be paid in full being 7 February 2010. 
As at 31 December 2009, the outstanding principal amount of the loan was $998,663. Subsequent to the year end date, the repayment terms 
of the loan have been revised. See note 13 on subsequent events.
9. Deferred taxation
       Year Year 
       ended ended 
       31 December 31 December 
       2009 2008 
       US$ US$
The elements of unrecognised deferred taxation are as follows:  
Tax losses       1,086,293  1,204,961
Unrecognised deferred tax asset      1,086,293 1,204,961 
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
     2009  2008
     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     102,721,921 1,851,516 99,621,880 1,792,015
At the end of the year     108,945,949 1,934,363 102,721,921 1,851,516 48 Anglo Asian Mining PLC Annual report and accounts 2009
Notes to the Company financial statements continued
For the year ended 31 December 2009
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 2009     1,851,516 30,911,013 (7,914,512) 24,848,017
Loss for the year     — — (1,443,486) (1,443,486)
Share issues     82,847 1,028,372 — 1,111,219
Share-based payment     — — 52,073 52,073
As at 31 December 2009     1,934,363 31,939,385 (9,305,925) 24,567,823
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
On 31 March 2010, the Company agreed with Mr Reza Vaziri, a Director of the Company, to reschedule the repayment of the outstanding 
principal amount of the loan from Mr Vaziri to 30 November 2010. 
14. Auditors’ remuneration
The Company paid $15,000 (2008: $22,210) to its auditors in respect of the audit of the financial statements of the Company. Fees paid 
to Ernst & Young LLP and Deloitte 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.  AZERBAIJAN OFFICE (PRINCIPAL PLACE OF BUSINESS)
16 H. Aleskerov str.
Baku
Republic of Azerbaijan
SECRETARY AND REGISTERED OFFICE
Mr Andrew Herbert
7 Devonshire Square
Cutlers Gardens
London EC2M 4YH
United Kingdom
COMPANY NUMBER
05227012
Registered in England and Wales
VAT REGISTRATION NUMBER
872 3197 09
BANKERS – UNITED KINGDOM
Anglo Irish Bank
10 Old Jewry
London EC2R 8DN
United Kingdom
BANKERS – AZERBAIJAN
International Bank of Azerbaijan
Street 67
Nizami
Baku
Azerbaijan
SOLICITORS – UNITED KINGDOM
Hammonds
7 Devonshire Square
Cutlers Gardens
London EC2M 4YH
United Kingdom
SOLICITORS – AZERBAIJAN
Nazal Consulting LLC
36 Islam Safarly Street
Baku
Azerbaijan
AUDITORS – CURRENT
Ernst & Young LLP
1 More London Place
London SE1 2AF
United Kingdom
AUDITORS – FORMER
Deloitte LLP
2 New Street Square
London EC4A 3BZ
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
Corporate information
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
Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
Felicity Edwards 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