Thursday, November 12, 2009

Avocet gold output in Indonesia ups 26%

Avocet Mining Plc reported gold output of 24,232 ounces  in six months ended September 2009, increased 25.8% from the same period last year while cash cost declined substantially by 20%.
Avocet told investors that mining cost was stable, while processing cost, royalties, and overheads were slashed substantially. Mining was benefited from unusually dry weather, which allowed progress to be made in a number of infrastructure projects, including new waste dumps, cleaning of sediment ponds, and realignment of haul roads.
North Lanut in North Sulawesi was developed by Avocet from the exploration stage. The mine has produced over 270,000 ounces since it was commissioned in 2004. Avocet purchased an 80% interest in PT Avocet Bolaang Mongondow, an Indonesian company holding a 6th generation Contract of Work, from Newmont Mining Corporation in 2002. An Indonesian company, PT Lebong Tandai, owns the remaining 20%.
Avocet reported average realized gold price of US$946/Oz in March-Sept 2009 against US$880/Oz in the same period last year. At that price, Avocet should have booked sales revenue of US$23 million in the period.

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