Views
3 years ago

EMEA - Avocet Mining PLC

EMEA - Avocet Mining PLC

A v o c e t M i n i n g

A v o c e t M i n i n g P l cincreased the resources by 25 per cent, takingthe deposit back to over one million ounces inreserves, which gives us a revised mine life ofeight years. It is our goal to double the reservesand resources at Inata from feasibility studyfigures, and we are hoping to accomplish that bythe third quarter 2011.”Inata is an open pit mine and has a relativelysoft ore—it is fairly user-friendly and has simplemetallurgy and provides for good recoveries. “Wehave been mining for over 18 months, and we onlybegan drilling and blasting in the second quarterof this past year,” says Richards. “But moreimportantly to the upside is that the deposit is notfully understood yet, as it is open to the north;open at depth; and to the south. To understandthe area better, we have embarked on an extensive200,000 metre drilling programme that will costapproximately $10 million this quarter and afurther $25 million during 2011.”In addition to investment in Burkina Faso,Richards says that Avocet will be investing$5 million to $10 million next year in Guinea, wherethe company acquired two exciting packages of landin the Wega Mining transaction. At the same time,he is busy working on a plan to completely movethe company out of South East Asia and expects tomake an announcement by the end of the year.“I’d like to make a clean break—our newmission will be to be a leading West African goldmining and exploration company,” he indicates.“Investment in West Africa is very much in vogueat present. Burkina Faso only brought out aMining Code in 2003—and three years ago therewas only one operational mine here. It is todaybecoming one of the world’s hottest fastest risingcountries for gold projects.”With 400 people employed in Burkina Fasoand an increasing shift towards local workers astraining pays off, Avocet is clearly keen to helpthe local community. The company invested$10 million and took eight months to build abarrage on a dry river that has provided a yearroundwater supply not just for the business, but for10,000 local people who have moved settlementsto the site. It is a project that has even drawnpraise from the country’s prime minister, whohailed it the biggest corporate social programmein Burkina Faso’s history. The business has alsobuilt a school and birthing clinic and contributedhousing for 250 people, ensuring its workforcehas good living conditions.Today, Avocet Mining is a thriving business with acomfortable cash flow; and Richards has an organicgrowth plan to increase production to 500,000+ounces per year in the next four years, and withinorganic growth, could very easily be a millionounce mid-tier producer in that same time frame.“Firstly we want to devise a plan to grow to the halfa million ounce mark organically and that shouldbe achievable in the next four years,” he says. “Weare in a good position and do not need to rely onraising equity to procure the exploration, as Inata’sfree cash flow is more than ample to finance all ofthe needs of the business in the foreseeable future.Investing in these projects will be the foundation ofAvocet’s future, and by expediting new ounces ofproduction into the group, it has a profound effecton diluting the hedge and increasing the cashresources,” says Richards.Richards goes on: “Our corporate philosophy isto be an unhedged gold mining company, and Iwould like to give our shareholders full exposureto the gold prices, but the hedge acquired inthe Wega transaction limits this exposure—sointroducing new, sustainable organic or inorganicounces significantly dilutes the effect of thehedge, and the sooner we are able to do that,the greater the positive impact will be for thebusiness.” www.avocet.co.uk

ebitda from operations - Avocet Mining PLC
Avocet Mining PLC Prospectus December 2011
Improved Inata mine plan and Q2 results - Avocet Mining PLC
Presentation: European Gold Forum (Zurich) - Avocet Mining PLC
FinnAust Mining PLC – Disclaimer - Geological Survey of Finland
Inata Mine Resumes Operation - Avocet Mining PLC
Inata Gold Mine production Update - Avocet Mining PLC
West African Exploration Update - Avocet Mining PLC
Avocet Mining Announces Appointment of Chief Operating Officer
Positive Drilling Results from Inata, Burkina Faso - Avocet Mining PLC
Company Registration No - Avocet Mining PLC
Avocet Mining Change in Directorate - Avocet Mining PLC
Avocet Mining PLC Significant intercepts at Tri-K Project, Guinea
Initial Mineral Resource at Souma - Avocet Mining PLC
Application to List on the Oslo Stock Exchange - Avocet Mining PLC
News Release - Avocet Mining PLC
Drilling Results From Kodiéran, Guinea - Avocet Mining PLC
Tri-K Gold Resource increases 52% to 2.24 - Avocet Mining PLC
notification of interest in total voting rights - Avocet Mining PLC
Brett Richards: The miner seeking gold with growth - Avocet Mining ...