31st Oct 2013 11:52
LONDON (Alliance News) - Avocet Mining PLC Thursday said its pretax loss widened significantly in its third quarter as the company moves towards becoming a fully unhedged gold producer.
The West African gold mining and exploration company said its pretax loss widened to USD25.3 million for the three months ended September 30 from USD323,000 the previous year.
Avocet said its sales for the quarter fell 25% to USD37.4 million from USD50.2 million as the average realised gold price fell to USD1,121 per ounce during the period from USD1,506 per ounce the previous year.
The company said its gold production fell 6.3% to 30,987 ounces from 33,067 ounces as mechanical issues affected both its mining fleet and its plant. Avocet expects the fallout of these issues to be extended into the fourth quarter and lowered its full-year production forecast to between 125,000 and 130,000 ounces.
However, the company said it has repaid its Macquarie debt and has took out a USD63 million medium term loan facility with Ecobank Burkina Faso, for five years at an interest rate of 8% per year.
As a result of the loan facility, the company said it is poised to become a fully unhedged gold producer and be able to offer shareholders full exposure to the gold spot price on its production.
Avocet shares were up 8.2% to 16.50 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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