Aug 5 Avocet Mining Plc cut its
full-year production forecast and reported a 31 percent fall in
quarterly gold output as it processed lower-grade ore, sending
its shares down as much as 12 percent.
The company, which mines gold in Burkina Faso and Guinea,
said it expected to produce 105,000 ounces this year. It had
earlier forecast production within a range of 105,000 to 115,000
Avocet's shares lost more than 85 percent of their value
last year as a tumbling gold price accentuated a hefty reserve
downgrade and funding worries at its key mine, Inata in Burkina
The company said production for the second quarter ended
June 30 fell to 21,650 ounces from 31,245 ounces a year earlier.
Avocet, which has a market capitalisation of $28 million,
said on Tuesday that funding requirements for the Inata mine had
been reduced to a range of $15 million to $20 million through a
revised mine plan and additional cost reductions.
"Challenges remain very high," Investec Securities analyst
Marc Elliott said. "They have to deliver and they have to
Avocet reported a pretax loss of $46 million for the first
half of the year, compared with a pretax loss of $65.7 million a
The company's shares were down 9.2 percent at 7.66 pence at
(Reporting by Karen Rebelo in Bangalore; Editing by Robin