26th Apr 2016 17:02
LONDON (Alliance News) - Avocet Mining PLC reported a narrowed pretax loss for 2015, saying that it had been "no exception" to the difficult year faced by the mining sector, but sees a more positive outlook for 2016.
Avocet is a gold mining and exploration company focused on West Africa.
The company reported a pretax loss of USD49.7 million for 2015, narrowed from a pretax loss of USD140.1 million, mostly due to recording a lower net impairment of assets of USD45.1 million, more than halved the USD111.7 million it recorded in 2014. This offset a decline in revenue to USD85.0 million from USD110.4 million.
Avocet said it sold 72,827 ounces at an averaged realised price of USD1,167 per ounce during the year, compared to 87,425 ounces at USD1,263 per ounce the year before. This was as a result of both lower production and a drop in the average realised spot price, Avocet said.
The company was awarded a mining permit at Tri-K in Guinea in March 2015, and has been looking to source funding for the project in a difficult market.
"Many challenges remain; however the outlook for 2016 is more positive, with an increase in the gold price during Q1 and M&A activity indicating that investor confidence may be returning. An updated Life of mine plan for Inata is being developed at the present time, and I hope to be able to provide more detail on our discussions regarding the financing of Tri-K and Souma in due course," said Chief Executive Officer David Cather in a statement.
Shares in Avocet closed up 0.5% at 3.97 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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