Bloomberg News

Avocet Third-Quarter Gold Production Falls on Mill Outage

October 28, 2011

(Updates with shares in last paragraph.)

Oct. 28 (Bloomberg) -- Avocet Mining Plc, a producer of gold in West Africa, said gold production fell and costs rose in the third quarter after a mill outage at its Inata mine.

Gold output was 33,256 ounces in the quarter, compared with 39,423 ounces in the prior three months, while costs per ounce rose 23 percent to $830, the company said in a statement. Avocet posted a loss of $11.7 million after it bought back hedged gold production.

After selling Southeast Asian assets this year, Avocet is focusing on units in West Africa, where it operates the Inata mine in Burkina Faso mine and explores for gold in Guinea. The company forecast that it would produce 160,000 ounces to 165,000 ounces this year.

Avocet slipped 2.9 percent to 241.25 pence as of 8:40 a.m. in London.

--Editors: Stephen Cunningham, Torrey Clark.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net.

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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