UPDATE 1-Avocet says repairs at Burkina Faso mine hit gold output

Thu May 8, 2014 4:00am EDT

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May 8 (Reuters) - Avocet Mining Plc reported a 24 percent decline in gold output for the first quarter after losing nine days of production to the refurbishment of a mill at its flagship Inata mine in Burkina Faso.

The company's shares fell more than 8 percent in early trading on Thursday.

Avocet, which mines gold in Burkina Faso and Guinea, said it expected full-year gold production of between 105,000 and 115,000 ounces at a cash cost of between $1,000 and $1,100 per ounce.

In 2013, Avocet produced 118,443 ounces of gold at a cash cost of $1,203 per ounce.

Avocet's shares lost more than 85 percent of their value last year as a tumbling gold price accentuated a hefty reserve downgrade at the Inata mine.

The company said its total gold production fell to 23,148 ounces for the quarter ended March 31 from 30,481 ounces a year earlier.

Cash costs in the first quarter rose marginally to $1,178 per ounce from $1,169 per ounce a year earlier.

Avocet also missed a $15.8 million loan repayment to its largest shareholder, Elliott Management Corp, earlier this year.

The stock was trading down 8.4 percent at 8.25 pence on the London Stock Exchange at 0753 GMT. (Reporting by Karen Rebelo in Bangalore; Editing by Sunil Nair and Robin Paxton)

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