Second quarter output edges higher at Avocet

24th Jul 2009 09:35

Gold miner Avocet Mining saw gold production edge higher in the second quarter of 2009 as gold prices did likewise.Gold production in the April to June quarter rose 1% to 27,563 ounces from 27,374 ounces in the preceding quarter. Production levels were consistent with guidance given at the time of the company's preliminary results announcement on 24 June.The realised gold price over the quarter averaged out at $925 an ounce, up from $916 an ounce in the first quarter of 2009.Before adjustment for deferred stripping at the company's Penjom operations in Malaysia, the company's total cash cost was $597 an ounce, representing a slight improvement from the $608 an ounce achieved in the preceding quarter.The unit cost after deferred stripping was $771 an ounce, up from $624 in the previous quarter, but the company pointed out that accounting for the deferred stripping cost has no effect on the company's cash flow.Production at Penjom was 3% below the levels seen in the previous quarter at 15,664 ounces, while output from the North Lanut mine in Indonesia rose 5% quarter on quarter to 11,899 ounces, the highest level for more than a year.The first gold pour from the company's Inata gold project in Burkina Faso is scheduled for the final quarter of 2009."'The continuing improvement at North Lanut reflects ongoing work by the mine's management team to optimise leach practices and to fully exploit the new leach pad completed in March. Elsewhere, management is focused on the delivery of a timely and successful commissioning of Inata and higher gold production at Penjom," said Jonathan Henry, chief executive officer of Avocet.