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Hi Guys. Fourth quarter results were announced this time last year with full year accounts available from the start of March. I know 2014 volume will be down from 2013 but I do wonder what their costs per ounce are now. In 2015, if costs are worse case scenario $1000 oz and gold stays at > $1200 will we make enough profit to pay the loan to the bank and Elliot? A question for Happy me thinks!
Thanks Lofty but much to your dismay I am definitely a guy and you are the wrong sex for me lol!
Hi As the largest shareholder in Avocet Mining registered on the AIM in the UK (AVM.L) I would like to know your feelings regarding the current CEO/BOD. Press release after press release they have failed on every possible target. Having written to them some months back (and not receiving a reply) I am interested to know what the future holds for the mining company and am utterly astounded that the current board have not been replaced. If you want to hear other peoples views please go to www.lse.co.uk enter AVM and read the forum for this company. Could you possible shed some light into Avocet that I can share with other disgruntled investors? Kind Regards
....due to strike.......
08 December 2014 INATA MINE HALTED BY ILLEGAL STRIKE Avocet Mining PLC ("Avocet" or "the Company") announces that it has halted operations at its Inata mine in Burkina Faso due to an illegal strike. The strike, which commenced at 10.30 pm on 4 December 2014, follows discussions with workforce representatives regarding labour cost reductions that are essential for Inata to continue operations, especially at times of lower gold prices. The Company is currently continuing discussions with a committee representing the Inata mine's workforce, and is being assisted by various ministries and departments in the Burkina Faso government in an effort to mediate an amicable resolution of the situation. The Company will provide further updates in due course.
Dec 8 (Reuters) - Gold miner Avocet Mining Plc (LSE: AVM.L - news) said on Monday it had halted operations at its Inata gold mine in Burkina Faso due to a labour strike. The miner, which is struggling due to lower gold prices, said the strike commenced late on Dec. 4, following talks with workforce representatives over labour cost reductions to keep Inata operational. A sharp drop in bullion prices last year hit miners hard, putting stress on balance sheets and forcing many to cut costs and slash production targets. Gold has fallen a further 1.1 percent in 2014, after tumbling 28 percent last year. Avocet in August cut its full-year production forecast as delayed delivery of key equipment to Inata added to the burden of hefty reserve downgrade and funding worries at the Inata mine. The London-listed miner said it was continuing talks with representatives of the workforce and was being assisted by various ministries and departments in the Burkina Faso government. Political uncertainty has been mounting in Burkina Faso since President Blaise Compaore resigned in October, leaving junior officers and top military brass competing for power. Avocet owns 90 percent of the Inata mine and the government of Burkina Faso the rest. It also holds several exploration licences in Burkina Faso as well as the Tri-K development project in Guinea. (Reporting by Esha Vaish in Bengaluru; Editing by Gopakumar Warrier)
no news regarding anything and then they issue this: Statement re: Events in Burkina Faso Fri, 31st Oct 2014 14:34 RNS Number : 8722V Avocet Mining PLC 31 October 2014 ? Events in Burkina Faso Avocet Mining PLC notes the recent unrest in Burkina Faso. Avocet's operations at the Inata mine in the north of the country remain unaffected by events at the present time, however we are taking all necessary precautions to ensure the Company's people and assets remain safe and secure. We will be continuing to monitor events closely as the situation develops.
Same old same old. Keep expecting an update and as each week goes by you fear for more bad news.....this is why the price is going down imo........
Hi Guys. Good to see a bounce on the shiny stuff. Surely next week we are due some news from BoD? What's your thoughts on this Happy? As previously mentioned if there has been a delay (which I expect) then they would have been stockpiling for longer and costs per oz will be higher. To hear nothing for this length of time though (and not receiving a reply to my email) doesn't bode well though......
Still stateside for another week so will keep it brief as I'm typing on my mobile. Do you think that Elliot do not want to intervene? If they have no confidence in BoD and company goes from bad to worse they may pick the rest of the company up for a song or am I missing something?
Hi str123 I'm in the US for 2 weeks so havent been looking at the forum. Sorry for the delay. As for my email to Avocet, I didn't even get an acknowledgement. Sums it up really.
.....Not sure how you came to the conclusion i was a girl......lol
I could have gone into more detail but I only had 10 minutes :) - Lets see if I get a reply....... Dear David Cather As a shareholder in Avocet Mining I am becoming increasingly concerned about the company. Now I am not going to harp on about the share price, or moan about how much investment I have lost. We are all adults and we know of the risks and rewards of the stock market. What concerns me however is the continuous missed deadlines, hold ups and lack of information. We all want to see a better Avocet but time and time again delays are denting market confidence. Here is the outlook you presented to us 6 weeks ago: “The focus at Inata over the second half of 2014 will be on further cost reductions and on successfully commissioning the carbon blinding circuit in September, which will increase monthly gold production. With a lower cost base and higher production expected for the future, we are now looking at adding value beyond what is in the current life of mine plan, by assessing the feasibility of developing more areas at Souma, heap leach operation, and underground mining at Inata North. At Tri-K, we continue to expect the award of an exploitation licence in the very near future. Meanwhile the business review will continue, to address the Elliott loan and the Group’s working capital needs.” With financing of paramount importance I am surprised that no update has yet to be announced to the market. I know these things can take time but only so long to be honest and I really don’t know what the hold-up is. We have been waiting on the exploitation licence in Guinea for some time too and “in the very near future” indicates a timeline less than a month in my opinion. The CIL, after delay, is now scheduled for September – half way through the month and investors are bracing themselves for yet another delay. Market confidence is borne out of delivering on your words. You cannot control the price of gold and sometimes production costs can exceed what you expect. However, constantly failing on deliverables dents confidence. It is no surprise to me that as September draws to a close and no announcement is made by yourself on CIL that production costs are therefore again higher and a further delay imminent. I believe it has now come to the point that the market have little faith in what is said. You could announce that you have found ‘a pot of gold’ pardon the pun and this would not lift sentiment. All we ask is that the CIL is delivered in September – as highlighted, we make progress with the Elliot loan and an update on the exploitation licence. I look forward to hearing from you.
I see nothing but a No vote and things staying as they are tbh. Right now though we are half way through September, share price close to all time lows and no use as per usual regarding Carbon Blinding. As each day goes by investors are thinking they are going to be late as per usual and confidence in BoD gets knocked again. Tom - have you also seen that at 4:35 every day a chunk of shares are sold? What's your thought on that?
Hi Tom - The CIL is due this month......do you know what date? I'm hoping that this is still on schedule but with no news from the company we are pretty much in the dark again :(
Lofty5 has bought them :) - He wanted them all tbh.....
yes Elliot in again for shares (highest shareholder) along with Prelas AS (second largest). They surely see that this is a sort term issue. Let the shiny stuff continue to rise and things will begin to look good. Let's be very pessimistic and say that monthly production is 8500oz. If costs are $1000 an oz (should be less) and gold is $1300. That's $2.5M profit. A quarter like that will turn things round very rapidly.
Placing of Shares Thu, 14th Aug 2014 07:00 RNS Number : 0893P Avocet Mining PLC 14 August 2014 Placing of Shares Highlights · £0.7 million (approximately US$1.2 million) to be raised by way of a Placing of 9,950,000 new ordinary shares ("Shares") with existing investors at a price of 7.13 pence per share · The Issue Price of 7.13 pence per share represents a discount of 5 % to the closing price of 7.51 pence per share on 13 August 2014 · Elliott , as Avocet's largest shareholder, subscribed for 2,550,000 shares, representing approximately 26% of the total placing, resulting in a post-placing shareholding of 27.69% in the Company · Prelas AS, as Avocet's second largest shareholder, subscribed for 4,950,000 shares, representing approximately 50% of the total placing, resulting in a post-placing shareholding of 6.87% in the Company · The funds raised from the Placing to be used wholly for corporate activities, primarily in London and Guinea David Cather, Chief Executive of Avocet, commented: "As we announced last week, steps have been taken to address the funding requirements of Inata, where production is forecast to increase following commissioning of the carbon blinding circuit next month. The share placing announced today will provide funding for our head office activities while we continue to address the wider Group's funding situation, and while the business review continues. The placing ensures that cash flows at Inata can be used exclusively for key items of capex and operating expenditure during the lead up to the commissioning of the carbon blinding circuit. While the placing demonstrates the support of our largest investors we remain fully committed to resolving the ongoing financing issues of the Group, through further cost reduction measures, continued negotiations with existing and potential sources of finance, and the completion of our business review." The placing Avocet Mining PLC ("Avocet" or the "Company") announces that it has conditionally raised £0.7 million before expenses by the placing of 9,950,000 new ordinary shares in the Company (the "Placing Shares") at a price of 7.13 pence per Placing Share (the "Placing"). The Placing Shares being issued represent approximately 5% of the Company's issued ordinary share capital prior to the Placing. The placing funds will be used for corporate activities. Following commissioning of Inata's new carbon blinding circuit, which is scheduled in September and is forecast to increase monthly production and improve cash generation, the Company will assess the extent to which this will enable Inata to contribute to funding these activities going forward. In the event that no funds were available from Inata for corporate purposes, it is estimated that the placing funds
Wasn't aware of the $5M tax bill wrangle with the Government. That's not good. Disappointing regarding Tri-K if we do sell it due to the low costs there but see why they would sell. I believe the CIL coming online in September when it happens. Constantly delayed. Should have been early 2014, then August now September - we shall see......mixed bag for me so we'll have to hope Q3 is good, more reduction in costs are met (through CIL) - a rise in PoG would also be good. I don't want much! :)
Thanks Happy. FWIW this quarter was the bet for some time in regards to news. Prod costs were lower even with the pit closure, binding circuit almost complete and no new skeletons in the cupboard. Prod costs will be lower again in the next quarter so we need gold to stay around current levels (or higher). Do you know off the top of your the monthly repayments to Ecobank? I'm trying to work out if we are profitable at $1100 prod cost over a quarter and selling for $1250 when you then factor in repayments.....