TSX- and Aim-listed Avesoro Resources expects to reap the benefit of its operational transition to contractor mining at the New Liberty and Youga mines, in Liberia and Burkina Faso, respectively, during the second half of the year.
CEO Serhan Umurhan on Thursday said the transition during the second quarter should effect various operational and cost improvements, including increased material movement at both mines.
“While some aspects of the transition were challenging for the operations in the second quarter of the year, which affected financial performance, I am confident that the decision will ultimately drive a stronger production performance in the second half of the year,” he said.
However, he added that heavy rains recently at New Liberty had impacted on production, with mining being halted for ten days to allow for dewatering of the pit.
Umurhan said the company would assess the impact of the stoppage on the business and its capacity to recover lost ore production later in the year to maintain guidance of between 180 000 oz and 200 000 oz of gold.
New Liberty and Youga produced 79 436 oz of gold in the six months ended June 30. Avesoro reported earnings before interest, taxes, depreciation and amortisation of $11.6-million for the reporting period.