AGF reported an operating profit before exceptionals of US$10.96m for the year to end-December (2008 US$2.7m) and a net profit after tax of US$1.02m, against a 2008 loss of US$0.61m.

Oxus signed a conditional agreement in January 2010 with China’s CITIC Group to provide up to US$185m in equity and debt financing.

Chairman Richard Shead said the financing would enable Oxus to construct its first underground mine at AGF, expand existing open pit heap leach operations and undertake a substantial exploration programme.

“The construction of the underground mine will take approximately 18 months from first draw-down of funds, which is dependent on finalising an appropriate Foreign Investment Agreement with the Uzbek government. Discussions with the government are well under way and we anticipate concluding this agreement in the near future”, he said.

AGF was targeting an increase in gold production to 300,000 ounces per annum and to increase gold reserves from 2.4 million ounces to over 7 million ounces during the next three to five years.

Oxus reported a group loss for the year of US$5.84 million, compared with a loss of US$54.39 million for the 18 months to end-December 2008.

The loss was after charging US$2.65 million in respect of exceptional AGF restructuring costs, previously £10.0 million.

The comparative period also included a £28.5 million charge for impairment of the Khandiza mining property.

Gross revenue was US$13.26 million, previously US$43.07 million, representing 50% of the proceeds received from the export and sale of gold and silver bullion by AGF.