UPDATE 2-Avocet Mining swings to H1 loss, incurs charge

* H1 net loss $3.1 mln vs $22.5 mln profit

* Takes $8.0 mln charge related to Penjom mine

* Sees output falling to about 23,600 ounces this quarter

* Says further drilling results from Penjom very positive

* Seeks business opportunities in Asia, West Africa

(Adds interview with CEO, share price, details)

By Julie Crust

LONDON, Nov 11 (Reuters) - Underperforming gold producer Avocet Mining (AVM.L) said it swung to a half-year loss after taking an impairment charge relating to its Penjom mine in Malaysia.

It moved to a net loss of $3.1 million in the six months to end September, after taking an $8.0 million deferred mining cost, from a profit of $22.5 million in the year-earlier period.

"These results were in line with expectations given the previously reported operating performance of the mines," said Brock Salier, analyst at Ambrian Capital.

Last month, the AIM-listed company said gold production climbed 3 percent to 28,734 ounces in the second quarter but commissioning of its Inata project in Burkina Faso will be delayed until January 2010. [ID:nWLA6684]

"With the key turning point for Avocet being commissioning of Inata, we don't expect the share price to move dramatically on this news," Salier said of the results.

The company reiterated on Wednesday that the first gold pour from Inata is expected before the end of January.

In the current quarter to end December, Avocet expects its production to fall to about 23,600 ounces.

Output from Penjom fell, as expected in October, to about 4,000 ounces on planned maintenance and power disruptions, but production is now back to 5,000 ounces a month, Chief Executive Jonathan Henry told Reuters in an interview.

He was also upbeat on further drilling results at the mine.

"The results we are getting both in the pit and outside of the current pit are very positive. The ore body is still very much wide open to the south and to the west."

The company now expects to announce the revised resource for Penjom in March, alongside its year-end results, rather than in December so it can carry out more intensive drilling.

The shares were flat at 90.3 pence at 1304 GMT. They have climbed 1 pence this year, underperforming a 95 percent surge in the UK mining index .FTNMX1770. While gold prices XAU= have gained 27 percent to reach a record high again on Wednesday. [GOL/]

"Six months ago the market was expecting, as were we, a better performance from Penjom," said Henry, regarding the stock's underperformance. "Once Inata does come into production I think that will make a difference." The company said it will continue to seek business opportunities in South East Asia and West Africa. (Editing by Neil Maidment and Mike Nesbit)