28th Apr 2016 07:51
LONDON (Alliance News) - Avocet Mining PLC shares rose on Thursday after the West Africa-focused company said production was higher in the first quarter of the year, whilst its cash costs came in considerably lower as the miner revealed its full-year guidance which suggests production should rise this year.
Avocet shares were trading up 29% to 5.15 pence per share on Thursday morning.
The gold miner working the Inata mine in Burkina Faso said production in the first three months of 2015 totalled 20,528 ounces at a cash cost of USD925.0 per ounce compared to the 17,379 ounces produced in the final quarter of 2015 at the higher cash cost of USD1,094 per ounce.
To put those cash costs into perspective, spot gold was trading at USD1,256 per ounce on Thursday morning.
More importantly, Avocet unveiled its full year target covering 2016, as the miner aims to produce between 75,000 to 85,000 ounces of gold during this year, which can be compared to the production over the course of 2015 of 74,755 ounces.
Avocet said production in the first quarter of 2016 benefited from a period of treating cleaner ores, which enabled higher recoveries to be achieved of 91.0% compared to the recovery rate of only 67.0% over the course of 2015.
Throughput also improved in the first quarter to 544,000 tonnes of ore compared to only 509,000 tonnes in the previous quarter and the 2015 full-year average throughput rate of only 466,000 tonnes per quarter.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
AVM.L