10th Oct 2019 11:06
(Alliance News) - Avesoro Resources Inc on Thursday reported a third quarter production decline and reiterated it is reviewing full-year guidance after experiencing security and operational difficulties in mines in Liberia and Burkina Faso.
In the quarter ended September 30, Avesoro reported gold production of 22,678 ounces, a 34% quarter-on-quarter fall from 34,338 tonnes and a 52% year-on-year decline from 47,177 ounces.
Year-to-date gold production stands at 102,113 tonnes, down by 42% from 175,496 reported in the same stage in 2018.
Chief Executive Serhan Umurhan said: "Following the transition to contractor mining at New Liberty and Youga earlier this year, both mines have experienced operational issues that adversely affected our mining rates and gold production performance in the quarter."
In New Liberty, hampered by heavy rainfall in July and August, third quarter gold production fell by 71% year-on-year to 8,059 ounces from 27,456 ounces. Last Thursday, Avesoro reported that ore production volume at the Liberian mine will be affected after a wall and ramp failure occurred.
In Youga, gold production fell by 26% year-on-year to 14,619 tonnes from 19,721 tonnes.
In August, the company reported that an armed group of artisanal miners broke into the Youga facility to steal ore. A number of heavy mining equipment, haul trucks and excavators were vandalised beyond repair.
Umurhan said: "I am confident that operational performance will improve at both mines during the fourth quarter, with the end of the wet season allowing New Liberty to materially enhance productivity in the near term despite the recent pit-wall failure.
"Meanwhile, an additional 15 trucks, six excavators, a rock drill and further auxiliary equipment will be available at Youga later this week at the mining contractors cost. Given a number of operational uncertainties our full year production guidance remains under review. The company intends to provide updated guidance once operational performance has stabilised for a sustained period of time."
Shares in Avesoro were 2.8% lower at 89.96 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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