JOHANNESBURG (miningweekly.com) – Aim- and Oslo Stock Exchange-listed Avocet Mining has increased the forecast gold production at its Inata mine, in Burkina Faso, to 165 000 oz/y up to 2016, up from the previously anticipated 120 000 oz/y up to 2018.

The gold miner on Friday reported a 28% quarter-on-quarter increase in its overall gold output to 67 792 oz for the three months ended September 30, 2010, compared with the 52 870 oz of gold produced in the June quarter.

Total production for the nine months ended September 30, 2010, increased by 98% to 165 539 oz, compared with the same period in 2009.

Output at Avocet’s Inata mine rose by 30% to 40 461 oz in the third quarter, compared with the 31 225 oz produced in the previous quarter.

Gold production at the mine was already expected to exceed 125 000 oz this year.

“The last quarter saw Avocet grow gold production and lower cash costs at each of our operations. West Africa is the engine room of our growth and we remain very encouraged not only by the performance of the Inata plant, but also by the potential for our accelerated exploration campaign across West Africa,” Avocet CEO Brett Richards said in a statement.

Higher mineral reserves at Inata, as well as the successful ramp-up of the processing plant, has prompted the miner to raise its gold production forecast to the 165 000-oz/y target over the life-of-mine at Inata.

In September, Avocet announced an increase in the mine’s proven and probable ore reserves to 16,3-million tons at a grade of 2,06 g/t gold for 1,08-million ounces of gold, a 25% increase on the previously estimated mineral reserves.

A recent study has also indicated that it would be beneficial for the company to increase the processing plant’s capacity to 340 t/h, up from the current 287 t/h.

The gold miner expects to spend $25-million on increasing the plant capacity and on making additions to its mining fleet. It has already signed contracts with Caterpillar and Komatsu for the mining equipment, while design work on the plant has started.

Long-lead items for the plant expansion would be ordered during the fourth quarter, with all enhancements to be completed by the second quarter of next year.

OTHER OPERATIONS

Meanwhile, Avocet’s South East Asian operations increased third-quarter output to 27 331 oz of gold, up 26% on the 21 645 oz of gold produced in the previous quarter.

Both the Penjom operation, in Malaysia, and the North Lanut operation, in Indonesia, saw higher output, as higher-grade mining areas became accessible.

The gold miner also continued to make progress with its exploration projects in both West Africa and South East Asia.

FINANCIAL RESULTS

Avocet’s revenues for the third quarter of the year rose by 19% to $77,5-million, compared with the $64,9-million earned in the June quarter.

Production was sold at an average $1 139/oz, somewhat lower than the $1 203/oz realised in the previous quarter.

However, the average cash production costs had also been reduced to $619/oz for the quarter, compared with $701/oz in the second quarter of the year.

The company’s net profit improved to $12,9-million, up from $7,3-million in the second quarter of the year, while its earnings before interest, tax, depreciation and amortisation (ebitda) improved to $27,9-million, up 13% on the ebitda of $24,6-million recorded in the previous quarter.

Avocet had also further reduced its gold hedge by 11 846 oz, bringing it to 362 019 oz as at the end of September. This was down from the initial total of 400 000 oz.