Avocet Mining gold production falls seven per cent in Q4

The volume of gold produced in the fourth quarter of 2012 fell seven per cent at Avocet Mining while price per ounce rose 33 per cent, according to the group's fourth quarter production results issued on Friday morning.

Total gold production at the company, which has primary operations in Burkina Faso and Guinea, fell to 30,909 ounces in the fourth quarter compared to $937 per ounce in the third quarter of the year.

The total cash cost of the gold including royalties was $1,246 per ounce compared to $937 per ounce in the previous quarter.

Gold production from the group's Inata Gold Mine for the year was 135,189 ounces at a total cash cost including royalties of $1,000 per ounce, which it said was in line with revised guidance.

This compared with 166,744 ounces at a total cash cost of US$693 per ounce from the Inata Gold Mine for the year ended December 2011.

Cash costs rose in the fourth quarter due to consultant fees paid to Alexander Proudfoot, a full quarter of costs associated with the hired mining fleet and scheduled maintenance of Inata's own mining fleet.

The group stated that impact of such items was expected to be lower in future quarters. In addition, movements in gold in circuit, which reflected the timing of gold pours, added approximately $190 per ounce compared with the previous quarter.

MF