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Thursday, 5th February 2009 (1398 views)

Avocet Mining has predicted that it will deliver full-year profits in line with analysts' expectations as a result of cost-cutting initiatives and higher gold prices that have balanced out a fall in production.

The company reported that its gold production for the quarter to December 2008 fell slightly to 26,766 ounces at a cash cost of $554 an ounce from 27,756 ounces at $506 an ounce over the previous quarter.

Avocet Mining has improved recovery rates at its North Lanut property from 31 per cent to 56 per cent, boosting gold production and reducing its cash costs per ounce at the mine by seven per cent.

The average sales price for gold over the three months to December was $798 per ounce and full-year profits are expected to be in line with forecasts, according to the firm.

Total costs for Avocet fell from $16.8 million over the quarter to September to $16.3 million last quarter.

Avocet Mining is a gold mining company with operations in Indonesia and Malaysia and a focus on expanding its reach in south-east Asia.

 

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