JOHANNESBURG (miningweekly.com) - TSX- and Aim-listed West African gold producer Avesoro Resources expects to produce between 220 000 oz and 240 000 oz of gold at an operating cash cost of between $620/oz and $660/oz this year.
"The operational turnaround at New Liberty is substantially complete and it is now delivering to the revised mining schedule with further productivity and cost improvements expected throughout the year ahead together with added value to come from our near-term exploration programme," commented CEO Serhan Umurhan on Monday.
He added that the acquisition of the Youga and Balogo gold mines, in Burkina Faso, represents an exciting step in the company's journey that complement Avesoro's asset portfolio with two high-quality gold producing mines, as well as offering geographic diversity within West Africa.
"Year-to-date performance at each of our mines has been in line with our published guidance and we believe that the investment we have made in the Youga and Balogo gold mines will significantly improve our operational and financial performance in 2018.
"We are well positioned for further growth and remain focused on achieving our medium term gold production target of 500 000 oz/year," he said.
Meanwhile, Avesoro's revenues for the year ended December 31, grew by 54% to $97.8-million, on gold sales of 77 396 oz at an average realised gold price of $1 263/oz.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) of $17.3-million - an increase of $105.4-million on 2016 - demonstrates the scale of the turnaround in operations at New Liberty, the company said.
In addition, operating cash costs of $918/oz sold at New Liberty showed a 46% improvement on the previous year.
"The year has seen materially increased revenues from higher gold sales, growth in Ebitda levels and a fall in operational costs, achievements that demonstrate our ability to optimise mines and extract inherent value," said Umurhan.