31st Jul 2007 07:01
Avocet Mining PLC31 July 2007 Avocet Mining PLC 31 July 2007 Q1 GOLD PRODUCTION - CONTINUING OPERATIONS UP 11% Avocet Mining ("Avocet" or "the Company") announces gold production of 45,727ounces for the first quarter ended 30 June 2006 (compared with 44,947 ounces forthe same period last year). Gold production from continuing operations at Penjom and North Lanut was up 11%at 38,802 ounces, at a cash cost of US$301/oz compared with 34,886 ounces atUS$373/oz for the corresponding period last year. This excludes ZGC followingits sale on 9 July 2007. Production from Penjom in Malaysia amounted to 23,069 ounces for the quarter (Q1last year: 24,613 ounces) at a cash cost of US$293/oz (Q1 last year: US$381/oz).Mining during the quarter was focused at the bottom of the pit, where gradeswere lower than those areas mined last year. The decrease in cash costs reflectsoperational improvements of US$30/oz, notably the benefit of Penjom's new haulfleet, which has allowed the operation to reduce mining costs per tonne. Theremaining decrease is the result of deferring the cost of excess waste strippingassociated with the mine's expansion(1). Production from North Lanut in Indonesia was 15,733 ounces for the quarter (Q1last year: 10,273 ounces) at a cash cost of US$313/oz (Q1 last year: US$354/oz).The improvement in production and unit costs reflects higher grades and thenegative impact that engineering work had on last year's costs. Production from ZGC in Tajikistan was 6,925 ounces for the quarter (Q1 lastyear: 10,061 ounces) at a cash cost of US$983/oz (Q1 last year: US$677/oz).Including ZGC, Avocet's average cash costs for the quarter were US$404/ozcompared to US$441/oz for the previous year. Despite the increased costs at ZGC,the year on year improvement reflects operational efficiencies achieved bymanagement at both Penjom and North Lanut since last year. Jonathan Henry, Chief Executive Officer, commented: "Following the sale of ZGC at the start of July, the Group's costs are more inline with our expectations of producing gold at cash costs below the industryaverage. We remain focused on further operational efficiencies in an environmentof high consumable prices and a strong gold price." ________________________________________________________________________________For further information please contact: Avocet Mining PLC Buchanan Communication Grant Thornton Corporate FinanceJonathan Henry, Chief Executive Officer Bobby Morse, Partner Fiona KindnessMike Norris, Finance Director Ben Willey, Director 020 7728 3414020 7907 9000 020 7466 5000www.avocet.co.uk www.buchanan.uk.com www.grant-thornton.co.uk Notes to Editors Avocet is a mining company listed on the AIM market of the London Stock Exchange(Ticker: AVM). The Company's principal activities are gold mining andexploration in Malaysia (as 100% owner of the Penjom mine, the country's largestgold producer), and Indonesia (as 80% owner of the North Lanut gold mine andBakan project in North Sulawesi). The Company has a number of advanced miningand exploration projects in South East Asia and owns significant interests inDynasty Gold and Monument Mining, both Toronto Venture Exchange listed companieswith interests in Western China and Malaysia, respectively.-------------------------- (1) As the waste-to-ore stripping ratio for the quarter at 33:1 exceeded thelife of mine average of 22.5:1, excess stripping costs of US$1.3 million havebeen deferred, equivalent to US$58/oz. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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