Avocet Mining beats production expectations

West African gold exploration and mining company Avocet revealed that gold production from the Inata Gold mine was ahead of year guidance at 166,744 ounces, compared to expectations of 160-165,000.

During the fourth quarter, the mine produced 46,102 ounces, compared to 33,256 ounces in the previous three months.

However the cost of mining the gold also rose as a result of a higher waste to gold ratio per ounce and higher maintenance costs.

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In 2012, the mine is expected to produce around 160,000 ounces of gold. Based on the current gold price of $1,654 per ounce, cash costs are expected to be between $800 and $850 per ounce for 2012, the firm said.

The share price rose 3.78% to 219.75p by 13:25.

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