Intends to focus on expanding the economic community of West African mines sees the avocet's sales in mines and Indonesia, Malaysia. Avocet for protection at the moment, but the decision to return.
Author: Eric OnstadPosted: Friday, 24 Dec 2010
LONDON (Reuters)-
Avocet Mining the gold miner is to sell in the case of Malaysia and Indonesia, the assets of the 200 million dollar private Indonesian mining Fund (j) to focus on expanding & Partners, the economic community of West African mines.
London-listed avocet, who had said previously, it may reduce the amount of the sum of its hedge, said on Friday it had decided what to do, it may be in cash. By agreeing to sell gold--in advance at a fixed price--hedge forces it to sell gold at less than market prices well.
"Questions have come up this morning in our hedge, and whether we plan to buy, and quite frankly we have just stick to us, will continue (suojauslaskentamenettelyssä) with the policy. We've made off the proceeds are not decisions, "Chief Executive Brett Richards told a conference call.
Oct. 31 avocet was 362,019 ounces of outstanding hedge $ 970 per Ounce, and was due to deliver 25000 ounces on a quarterly basis. The amount of Spot gold is around $ 1,430 record earlier this month and currently trades, $ 1,385.
Avocet, also in Oslo, said in June it wanted to reduce its hedge, but next month said, cutting its debt and investing in existing operations is the higher the priority.
Avocet, whose most important asset is the Burundian Inata-mine was 37.7 million dollars net debt at the end of the third quarter.
BURKINA FASO, GUINEA PROSPECTING
Avocet in Malaysia is to sell my Penjom Lanut Indonesia and North of the mine, the agreement duly meet in the second quarter of 2011 and, as a result of the pretax Group profit of around 100 million dollars.
"We have some significant country-packets in Burundi and Guinea, which are underdrilled and underexplored and we have to understand them," Richards said.
At some point in the market may be purchases avocet, but time was not correct.
"We must focus on the economic community of West African potential growth-specific fields for us M & a, but we do not at this stage, you can go out and conclude an agreement," Richards said.
Is sale of North Sulawesi to the right of first refusal "Indonesian groups PT Lebong Tandai, which owns 20% of the North Lanut mine. It can be purchased from the avocet contribution for 120 million dollars in cash.
In this case, the J & Partners to handle withdraw and would seek to sell my avocet Penjom separately.
Ageing in Asia was hit by the mines is lower in the case of the output and higher costs. Output is Penjom decreased by 19% 39,150 ounces of gold in the first nine months of the year, while the production decreased by 2% in the North Lanut 34,865 ounces.
Cash costs began to 35% of the total is $ 907 Penjom Ounce and 32%, to $ 657, North Lanut towards.
Agreement in the form of advisors, Standard Chartered Bank Avocet and Macquarie Capital J & Partners.
Avocet's shares by 0.1 percentage points were provides 229.75 pennyn mid morning.
(Reports, Eric Onstad; Editing Dan Lalor)
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